Broker Agreement Template for Nigeria

A Broker Agreement sets out the terms between a broker and their client in Nigeria, defining how the broker will help buy, sell, or negotiate deals on the client's behalf. These contracts spell out the broker's duties, commission rates, and the specific scope of their authority to represent the client's interests.

Common in real estate, securities trading, and import-export dealings, these agreements must comply with Nigerian Securities and Exchange Commission regulations when handling financial instruments. They protect both parties by clearly stating performance expectations, payment terms, and what happens if either side doesn't fulfill their obligations under Nigerian contract law.

Use a Broker Agreement when hiring a professional intermediary to handle significant transactions in Nigeria's markets. This applies when engaging brokers for real estate deals, stock market trading, or import-export arrangements where you need someone to represent your interests and negotiate on your behalf.

The agreement becomes essential before any broker starts working for you, especially for high-value deals or ongoing business relationships. Nigerian law requires written broker contracts for regulated activities like securities trading, and having one in place protects you from disputes over commission rates, scope of authority, and performance expectations.

• Broker Contract Agreement: Standard comprehensive agreement for all brokerage services, outlining core terms and obligations
• Broker Referral Agreement: Focuses on commission-sharing arrangements when one broker refers clients to another
• Real Estate Agent Independent Contractor Agreement: Specifically for real estate agents working as independent contractors
• Business Broker Contract: Tailored for brokers handling business sales and acquisitions
• Agreement Between Landlord And Real Estate Agent: Specialized agreement for property management and leasing services

• Licensed Brokers: Professional intermediaries registered with Nigerian regulatory bodies who negotiate deals and receive commissions for their services
• Property Owners: Individuals or companies seeking to sell or lease real estate through broker services
• Business Sellers: Companies or entrepreneurs engaging brokers to find buyers or facilitate business sales
• Legal Counsel: Lawyers who draft and review Broker Agreements to ensure compliance with Nigerian laws
• Regulatory Bodies: Organizations like the Securities and Exchange Commission that oversee broker activities and enforce compliance
• Clients/Investors: Individuals or organizations seeking to buy properties or invest through broker services

• Broker Details: Gather licensing information, registration numbers, and professional credentials required by Nigerian regulations
• Scope Definition: List specific services, territories, and transaction types the broker will handle
• Commission Structure: Document exact rates, payment terms, and conditions for earning commissions
• Duration Terms: Specify agreement length, renewal options, and termination conditions
• Legal Requirements: Include mandatory disclosures and compliance statements per Nigerian broker laws
• Party Information: Collect full legal names, addresses, and contact details of all involved parties
• Documentation: Prepare supporting documents like broker licenses and business registration certificates

• Party Identification: Full legal names, addresses, and registration details of broker and client
• Service Scope: Detailed description of brokerage services, territories, and transaction types covered
• Commission Terms: Clear breakdown of rates, payment schedules, and conditions for earning fees
• Duration Clause: Agreement period, renewal terms, and termination conditions
• Confidentiality: Protection of sensitive business information and client data
• Regulatory Compliance: References to relevant Nigerian broker laws and SEC requirements
• Dispute Resolution: Nigerian jurisdiction choice and conflict resolution procedures
• Signature Block: Space for dated signatures, company seals, and witness attestation

While a Broker Agreement and an Agency Agreement might seem similar, they serve distinct purposes in Nigerian business law. Let's explore their key differences:

• Scope of Authority: Broker Agreements typically cover specific transactions or deals, while Agency Agreements grant broader, ongoing authority to act on behalf of the principal
• Duration: Broker relationships usually end after completing specific transactions, whereas agency relationships often continue indefinitely
• Legal Obligations: Agents have fiduciary duties and can bind their principals legally, while brokers mainly facilitate deals without such binding power
• Compensation Structure: Brokers typically earn one-time commissions per transaction, while agents may receive regular fees or salaries
• Regulatory Requirements: Broker Agreements in Nigeria often need specific licenses and SEC compliance, especially in securities trading, while Agency Agreements have more flexible regulatory requirements