BIC Tip #1060: Using the Builder Referral Form (Form 731)
In North Carolina real estate, clear agreements are critical — especially when it comes to referral fees. The Builder Referral Form (Form 731) was created for situations where a licensed real estate broker refers a buyer to a builder and expects to be compensated.
Why Use Form 731?
Too often, referral agreements are made with nothing more than a handshake or a quick conversation. That’s risky. Oral promises of referral fees can be disputed, misunderstood, or even considered non-compliant with NCREC rules.
Form 731 ensures that everything is in writing and that all parties understand their responsibilities.
What the Form Covers
Form 731 locks in key details, including:
- Referring Broker’s Information – Identifies the broker expecting compensation.
- Builder’s Obligations – Outlines what the builder agrees to do in return for receiving the referral.
- Referral Fee Details – Specifies the amount of the fee and when it will be paid.
With these elements documented, there is less room for confusion and fewer opportunities for disputes.
Compliance Reminder
⚠️ Brokers must remember: referral fees can only be collected from licensed parties. It is unlawful to receive compensation from an unlicensed individual. Both the builder and the referring broker must have a clear, written agreement in place to stay compliant with state rules.
Protecting Relationships and Reputation
By using Form 731, brokers protect more than just their compensation. They also safeguard their brokerage and their client relationships by ensuring that referrals are transparent, professional, and enforceable.
The Bottom Line
If you’re sending buyers to a builder and expect compensation, don’t rely on a verbal promise. Use Form 731 every time. It protects you, your brokerage, and your clients — while keeping you compliant with NCREC rules.
