RARA stands for Real Estate Agent Referral Agreement, a formal contract commonly used in the real estate industry when one agent refers a client to another agent. The agreement outlines the terms under which the referring agent will receive compensation if the referred client successfully completes a transaction, such as buying or selling a property. RARA is a vital tool that helps foster collaboration between agents, expand their network, and increase business opportunities, especially in markets where an agent may not be licensed or familiar with a specific geographic area or property type.