The Broker Agent Commission Agreement serves as a fundamental document in professional brokerage relationships across the United States. This agreement is essential when engaging broker services for transactions involving real estate, businesses, or other assets where commission-based compensation is involved. The document establishes clear parameters for commission calculations, payment timing, and service expectations while ensuring compliance with federal and state regulations. Used primarily when formalizing relationships between brokers and principals, this agreement helps prevent disputes and provides legal protection for all parties involved.
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1. Parties: Identification of the broker and the principal
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including commission, territory, and transaction types
4. Appointment: Formal appointment of broker and scope of authority
5. Commission Structure: Details of commission rates and calculation methods
6. Payment Terms: When and how commissions will be paid, including invoicing and payment timeline
7. Term and Termination: Duration of agreement and termination conditions
8. Obligations of Parties: Responsibilities of both broker and principal
9. Governing Law: Applicable law and jurisdiction governing the agreement
1. Exclusivity: Terms of exclusive representation when broker is granted exclusive rights
2. Protection Period: Post-termination period where broker remains entitled to commission for leads generated during the agreement
3. Sub-agents: Terms for involving other agents and sub-brokers in transactions
4. Non-Circumvention: Provisions preventing direct dealings between principal and broker's contacts
1. Commission Rate Schedule: Detailed breakdown of commission rates for different transaction types
2. Territory Definition: Geographic area or market sector covered by the agreement
3. Service Level Agreement: Specific performance metrics and service standards expected from the broker
4. Required Licenses: Copies of relevant broker licenses and certifications
Relevant legal definitions
Agreement
Broker
Principal
Commission
Effective Date
Services
Territory
Transaction
Closing
Gross Sale Price
Net Commission
Protected Period
Confidential Information
Force Majeure
Sub-agent
Listing
Exclusive Rights
Business Day
Intellectual Property
Term
Termination Date
Commission Rate
Payment Period
Qualified Transaction
Material Breach
Broker
Principal
Commission
Effective Date
Services
Territory
Transaction
Closing
Gross Sale Price
Net Commission
Protected Period
Confidential Information
Force Majeure
Sub-agent
Listing
Exclusive Rights
Business Day
Intellectual Property
Term
Termination Date
Commission Rate
Payment Period
Qualified Transaction
Material Breach
Clauses
Appointment and Authority
Commission Structure
Payment Terms
Scope of Services
Term and Duration
Termination
Exclusivity
Confidentiality
Non-Solicitation
Representations and Warranties
Indemnification
Force Majeure
Assignment
Governing Law
Dispute Resolution
Protection Period
Sub-agency Rights
Performance Standards
Record Keeping
Insurance Requirements
Compliance with Laws
Notices
Severability
Entire Agreement
Amendment and Modification
Survival
Commission Structure
Payment Terms
Scope of Services
Term and Duration
Termination
Exclusivity
Confidentiality
Non-Solicitation
Representations and Warranties
Indemnification
Force Majeure
Assignment
Governing Law
Dispute Resolution
Protection Period
Sub-agency Rights
Performance Standards
Record Keeping
Insurance Requirements
Compliance with Laws
Notices
Severability
Entire Agreement
Amendment and Modification
Survival
Relevant Industries
Relevant Teams
Relevant Roles
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