Commission Agreement Between Brokers for Canada

Commission Agreement Between Brokers Template for Canada

This agreement governs the commission-sharing arrangement between licensed real estate brokers or brokerage firms operating within Canada. It establishes the terms and conditions for cooperation, including commission splits, payment procedures, and dispute resolution mechanisms. The document complies with Canadian federal regulations and provincial real estate laws, particularly addressing the requirements of the Real Estate and Business Brokers Act (REBBA) and equivalent provincial legislation. It includes provisions for confidentiality, data protection under PIPEDA, and specific provincial regulatory compliance requirements.

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What is a Commission Agreement Between Brokers?

A Commission Agreement Between Brokers is essential when two or more licensed real estate brokers or brokerage firms in Canada wish to establish a formal arrangement for sharing commissions on cooperative transactions. This document becomes necessary when brokers collaborate on property listings, sales, or referrals, ensuring clear terms for commission splits and payment procedures. It must comply with Canadian federal regulations and provincial real estate laws, including the Real Estate and Business Brokers Act (REBBA) in Ontario and equivalent legislation in other provinces. The agreement typically covers commission structures, payment terms, confidentiality obligations, dispute resolution procedures, and regulatory compliance requirements. It's particularly important for cross-provincial transactions where different regulatory frameworks may apply.

What sections should be included in a Commission Agreement Between Brokers?

1. Parties: Identifies the participating brokers/brokerage firms with their full legal names, licensing details, and business addresses

2. Background: Explains the context of the agreement and the brokers' intention to cooperate and share commissions

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Qualifying Transaction', 'Territory', etc.

4. Scope of Agreement: Outlines the nature of the cooperation and types of transactions covered

5. Commission Structure: Details the agreed-upon commission split percentages and calculation methods

6. Payment Terms: Specifies timing, method, and conditions for commission payments

7. Representations and Warranties: Statements confirming each party's authority, licensing status, and compliance with regulations

8. Confidentiality: Provisions regarding handling of confidential information and client data

9. Term and Termination: Duration of the agreement and conditions for termination

10. Dispute Resolution: Process for resolving disagreements between the parties

11. General Provisions: Standard clauses including governing law, amendments, notices, etc.

12. Execution: Signature blocks and date of agreement

What sections are optional to include in a Commission Agreement Between Brokers?

1. Referral Process: Detailed procedures for referring clients between brokers - include when referrals are a significant part of the relationship

2. Territory Restrictions: Geographical limitations on the agreement - include when parties operate in specific regions

3. Marketing Cooperation: Terms for joint marketing efforts - include when parties plan to market properties together

4. Non-Solicitation: Restrictions on soliciting each other's clients - include when protecting client relationships is crucial

5. Insurance Requirements: Specific insurance coverage requirements - include when dealing with high-value properties

6. Technology Integration: Terms for sharing listing platforms or software - include when technical integration is needed

7. Training Requirements: Requirements for staff training on cooperative procedures - include for complex cooperation arrangements

What schedules should be included in a Commission Agreement Between Brokers?

1. Schedule A - Commission Split Matrix: Detailed breakdown of commission splits for different transaction types and values

2. Schedule B - Territory Map: Map and description of geographical areas covered by the agreement

3. Schedule C - Administrative Procedures: Step-by-step procedures for processing shared commissions

4. Schedule D - Required Documentation: List of documents required for commission processing

5. Appendix 1 - Contact Information: Key contacts at each brokerage for various functions

6. Appendix 2 - Commission Calculator: Tools or formulas for calculating commission splits

7. Appendix 3 - Regulatory Compliance Checklist: Checklist ensuring compliance with relevant regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Property Development

Property Investment

Luxury Real Estate

Agricultural Real Estate

Relevant Teams

Legal

Compliance

Finance

Operations

Sales Administration

Commission Processing

Transaction Management

Broker Relations

Partnership Management

Risk Management

Account Management

Relevant Roles

Managing Broker

Associate Broker

Real Estate Broker

Brokerage Owner

Real Estate Agency Director

Compliance Officer

Commission Manager

Transaction Coordinator

Broker of Record

Sales Manager

Regional Broker Manager

Licensed Real Estate Agent

Real Estate Partnership Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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