The Commercial Loan Broker Fee Agreement is essential for businesses seeking financing through professional brokers in Canada. This document is used when a commercial client engages a loan broker to source and secure business financing, establishing clear terms for the broker's services and compensation. It addresses key aspects such as success fees, retainer fees (if applicable), scope of services, and regulatory compliance requirements. The agreement is particularly important in the Canadian context, where financial services are regulated at both federal and provincial levels, requiring careful attention to jurisdiction-specific requirements. It protects both the broker and client by clearly defining expectations, responsibilities, and payment terms, while ensuring compliance with applicable Canadian financial services regulations, including provincial mortgage broker laws and federal financial consumer protection requirements.

1. Parties: Identification of the Broker and the Client, including full legal names and addresses

2. Background: Context of the agreement, including Client's desire to obtain commercial financing and Broker's services offering

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Success Fee', 'Loan', 'Lender', etc.

4. Scope of Services: Detailed description of broker's services, including loan sourcing, application assistance, and negotiation support

5. Broker's Fees: Structure and amounts of all fees, including success fees, retainer fees if applicable, and payment terms

6. Payment Terms: Timing and method of payment, including triggers for fee payment and any installment arrangements

7. Broker's Obligations: Specific duties and responsibilities of the broker, including regulatory compliance and professional standards

8. Client's Obligations: Client's responsibilities, including providing accurate information and timely responses

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Protection of confidential information exchanged during the engagement

11. Representations and Warranties: Standard commercial warranties and factual statements by both parties

12. Limitation of Liability: Limits on broker's liability and disclaimer of guarantees regarding loan approval

13. General Provisions: Standard boilerplate including governing law, notices, assignment, and entire agreement