Two agents working together on a deal can be doing one of two very different things: a conjunction or a referral. The terms are often used interchangeably, but they carry different obligations, different commission treatment, and different legal implications. Getting it wrong can cost you commission.
What is a conjunction?
In a conjunction, two agencies actively collaborate on the same listing. One holds the vendor authority; the other introduces a buyer and helps facilitate the sale. Both are working the deal, and both share the commission under an agreed split. For the full picture, see our complete guide to real estate conjunctions.
What is a referral?
In a referral, one agent introduces a client, a buyer or a seller, to another agent and then steps back. The receiving agent does the work; the referring agent receives a referral fee or an agreed share of commission for the introduction. The referring agent does not act on the listing.
The key differences
- Involvement: conjunction = both agents actively work the deal; referral = one agent introduces and steps back.
- Commission basis: conjunction = a negotiated split for shared work; referral = a fee for an introduction.
- Documentation: conjunctions need a conjunction agreement; referrals are usually covered by a simpler referral agreement.
- Buyer relationship: in a conjunction, the introducing agent must not represent the buyer as a fiduciary, an agent can only act for one party in the transaction.
When to use which
If you simply know someone who is selling or buying outside your area or expertise, a referral is usually the right fit. If you and another agent are both going to actively work the same listing, for example one holds the authority and one brings the buyer, a conjunction is the correct structure, and it needs a proper conjunction agreement.
Why the distinction protects you
Documenting the wrong arrangement, or none at all, is a fast route to a commission dispute. Whether you are conjuncting or referring, the terms should be in writing before the deal progresses. We cover the risks in how to avoid conjunction commission disputes.
Manage conjunctions properly with BuyFinder
When you do conjunct, BuyFinder gives you one structured workflow to invite agents, execute the agreement digitally, register buyer introductions, and manage offers, so the arrangement is clear from day one. Add your listing to BuyFinder and collaborate with confidence.