A property referral fee is a payment made to a mortgage broker when they introduce a client to a buyer’s agent or investment advisory service, and that client subsequently settles on an investment property.

The fee is paid by the buyer’s agency, not the client. It is distinct from the broker’s loan commission — both can be earned from a single client transaction. The referral fee is typically a fixed amount per settled property, agreed in a written referral arrangement between the broker and the buyer’s agency.

In Australia, property referral fees must be disclosed to the client. The broker’s credit guide or a separate disclosure document should state that a referral fee may be received for introducing clients to a property service. The fee amount does not need to be disclosed in advance in all cases, but the existence of the arrangement must be transparent.

Property referral fees are not commissions — the broker is not providing property advice or acting as a buyer’s agent. Their role is an introduction only. All property-related work is performed by the licensed buyer’s agency. This structure means no property licence is required by the referring broker.