Commission Split Agreement Between Agents for Philippines

Commission Split Agreement Between Agents Template for Philippines

A Commission Split Agreement Between Agents is a legally binding document used in the Philippines that establishes the terms and conditions for sharing real estate commission earnings between two or more licensed real estate professionals. The agreement complies with Philippine real estate laws, particularly the Real Estate Service Act (RESA) and related PRC regulations, and outlines specific commission split percentages, payment terms, duties, and responsibilities of each party. It includes provisions for dispute resolution, confidentiality, and termination conditions while ensuring compliance with local tax regulations and professional standards.

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What is a Commission Split Agreement Between Agents?

The Commission Split Agreement Between Agents serves as a crucial document in the Philippine real estate industry, designed to formalize cooperation between licensed real estate professionals who wish to share commission earnings from property transactions. This agreement becomes necessary when agents decide to work collaboratively, whether in mentor-mentee relationships, partnerships, or team arrangements. It ensures compliance with the Real Estate Service Act (RESA) of the Philippines, professional regulations, and tax requirements while protecting the interests of all parties involved. The document typically includes detailed commission structures, payment processes, professional obligations, and dispute resolution mechanisms, making it essential for maintaining transparent and professional relationships in real estate practice.

What sections should be included in a Commission Split Agreement Between Agents?

1. Parties: Identifies the agents entering into the agreement, including their license numbers and contact details

2. Background: Explains the context of the agreement and the agents' desire to collaborate and share commissions

3. Definitions: Defines key terms used throughout the agreement

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

5. Payment Terms: Specifies when and how commission payments will be processed and distributed

6. Duties and Responsibilities: Outlines the obligations of each agent in the commission-sharing relationship

7. Term and Termination: Specifies the duration of the agreement and conditions for termination

8. Confidentiality: Establishes confidentiality obligations regarding shared client information and business practices

9. Dispute Resolution: Details the process for resolving any disagreements between the agents

10. Governing Law: Confirms that the agreement is governed by Philippine law

11. Entire Agreement: States that this document represents the complete agreement between the parties

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

1. Training and Mentorship: Include when one agent will provide training or mentorship to the other

2. Mutual Referrals: Include when agents agree to a formal referral system

3. Marketing Expenses: Include when agents will share marketing or advertising costs

4. Non-Compete Clause: Include when agents want to restrict competition within specific parameters

5. Team Branding: Include when agents will operate under a shared brand or team name

6. Client Database Management: Include when agents will share or jointly maintain a client database

What schedules should be included in a Commission Split Agreement Between Agents?

1. Schedule A - Commission Split Rates: Detailed breakdown of commission split percentages for different transaction types

2. Schedule B - Territory Definition: Map or description of any geographical territories covered by the agreement

3. Schedule C - Marketing Guidelines: Specific guidelines for joint marketing activities and brand usage

4. Appendix 1 - Sample Commission Calculation: Examples of how commissions will be calculated in various scenarios

5. Appendix 2 - Required Documentation: List of documents required for commission processing

6. Appendix 3 - Contact Details: Complete contact information and preferred communication methods for all parties

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

Philippines

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant Industries

Real Estate

Property Development

Real Estate Investment

Property Management

Commercial Real Estate

Residential Real Estate

Luxury Real Estate

Industrial Real Estate

Relevant Teams

Sales

Operations

Administration

Compliance

Finance

Legal

Training

Transaction Processing

Relevant Roles

Real Estate Agent

Real Estate Broker

Senior Real Estate Agent

Associate Real Estate Broker

Real Estate Team Leader

Managing Broker

Broker-Owner

Real Estate Sales Manager

Transaction Coordinator

Commission Administrator

Compliance Officer

Real Estate Operations 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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