Real Estate Agent Contract With Broker for Canada

Real Estate Agent Contract With Broker Template for Canada

This document establishes the legal and professional relationship between a licensed real estate agent and a brokerage firm in Canada. It outlines the terms and conditions under which the agent will operate under the broker's supervision, including commission structures, responsibilities, compliance requirements, and operational procedures. The agreement ensures compliance with Canadian federal regulations and provincial real estate laws, particularly the Real Estate and Business Brokers Act (REBBA) and related provincial legislation. It covers essential aspects such as licensing requirements, professional standards, commission arrangements, and mutual obligations while incorporating specific provincial regulatory requirements.

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What is a Real Estate Agent Contract With Broker?

The Real Estate Agent Contract With Broker is a fundamental document in the Canadian real estate industry that formalizes the business relationship between licensed real estate professionals and their sponsoring brokerages. This agreement is essential when a licensed real estate agent joins a brokerage firm or renews their existing arrangement. It serves multiple purposes: establishing the framework for commission structures, defining operational responsibilities, ensuring regulatory compliance, and protecting both parties' interests. The document must comply with federal regulations and provincial real estate laws, including specific requirements for different provinces and territories. It's particularly important as real estate agents in Canada must work under the supervision of a registered broker, making this agreement a legal necessity for practicing real estate. The contract typically includes provisions for commission splits, marketing support, technology access, training requirements, and compliance procedures.

What sections should be included in a Real Estate Agent Contract With Broker?

1. Parties: Identification of the Broker (Brokerage) and the Real Estate Agent, including licensing details and contact information

2. Background: Context of the agreement, including the broker's business nature and agent's qualifications

3. Definitions: Key terms used throughout the agreement including Commission, Listing, Transaction, and Territory

4. Appointment and License: Formal appointment of the agent and confirmation of necessary licensing requirements

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Agent Duties and Responsibilities: Comprehensive list of agent's obligations, including compliance with laws and brokerage policies

7. Broker Duties and Responsibilities: Broker's obligations including support, training, and maintenance of required insurance

8. Commission Structure: Detailed breakdown of commission splits, payment terms, and conditions

9. Compliance Requirements: Obligations regarding regulatory compliance, record-keeping, and reporting

10. Confidentiality: Terms regarding confidential information handling and privacy requirements

11. Non-Solicitation: Restrictions on soliciting clients or other agents during and after the agreement

12. Insurance and Liability: Requirements for insurance coverage and allocation of liability

13. Dispute Resolution: Process for resolving disagreements between parties

14. General Provisions: Standard clauses including governing law, amendments, and notices

What sections are optional to include in a Real Estate Agent Contract With Broker?

1. Team Arrangements: Terms for agents working in teams, including leadership roles and commission splitting

2. Marketing Support: Details of marketing services and support provided by the broker

3. Technology Services: Terms regarding use of brokerage technology platforms and tools

4. Additional Services: Terms for specialized services like property management or commercial real estate

5. Training Requirements: Specific ongoing education and training obligations

6. International Transactions: Terms specific to handling international real estate transactions

7. Retirement or Succession: Terms for transitioning the agent's business upon retirement

8. Referral Program: Terms for participation in broker's referral network

What schedules should be included in a Real Estate Agent Contract With Broker?

1. Schedule A - Commission Structure: Detailed commission splits, bonus structures, and payment schedules

2. Schedule B - Brokerage Policies: Current brokerage policies and procedures that form part of the agreement

3. Schedule C - Technology Systems: List of provided technology tools and associated usage terms

4. Schedule D - Marketing Services: Details of included marketing support and additional marketing services

5. Schedule E - Territory Definition: Specific geographic areas or market segments covered by the agreement

6. Appendix 1 - Required Forms: Standard forms and documents required for transactions

7. Appendix 2 - Compliance Checklist: Regulatory compliance requirements and procedures

8. Appendix 3 - Insurance Requirements: Detailed insurance coverage requirements and specifications

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

Property Management

Commercial Property

Residential Property

Real Estate Investment

Property Development

Real Estate Finance

Professional Services

Relevant Teams

Legal

Compliance

Operations

Administration

Real Estate Sales

Commercial Real Estate

Residential Real Estate

Transaction Processing

Human Resources

Training and Development

Marketing

Finance

Relevant Roles

Real Estate Agent

Real Estate Broker

Managing Broker

Broker of Record

Real Estate Sales Representative

Real Estate Associate

Commercial Real Estate Agent

Residential Real Estate Agent

Real Estate Compliance Officer

Real Estate Office Manager

Transaction Coordinator

Real Estate Administrator

Legal Counsel

Compliance Manager

Operations Director

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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