The Broker to Broker Commission Agreement serves as a fundamental document in U.S. real estate transactions where multiple brokers collaborate. This agreement is essential when brokers from different firms work together on property transactions, requiring clear terms for commission splits and cooperative arrangements. It ensures compliance with federal regulations like RESPA and state-specific real estate laws while protecting both parties' interests in cross-firm transactions. The document typically includes commission structures, payment terms, confidentiality provisions, and dispute resolution mechanisms.
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1. Parties: Identification of the cooperating brokers and their licensed status
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement including commission, territory, and transaction definitions
4. Commission Structure: Details of commission splits, payment terms, and calculation methods
5. Term and Termination: Duration of agreement and conditions for termination or renewal
6. Confidentiality: Protection of sensitive information and client data
7. Governing Law: Applicable jurisdiction and legal framework governing the agreement
1. Territory Restrictions: Geographic limitations and boundaries of broker cooperation
2. Marketing Obligations: Terms regarding shared marketing responsibilities and cost allocation
3. Dispute Resolution: Procedures for handling disputes through mediation or arbitration
1. Schedule A - Commission Rate Schedule: Detailed breakdown of commission splits for different transaction types
2. Schedule B - Territory Map: Visual representation of geographic coverage areas
3. Schedule C - License Information: Copies of current broker licenses and certifications
Relevant legal definitions
Agreement
Applicable Law
Broker Commission
Business Day
Closing
Commission Split
Confidential Information
Cooperating Broker
Effective Date
Gross Commission
Licensed Territory
Listing Agreement
MLS
Net Commission
Primary Broker
Property
Protected Information
Qualifying Transaction
Real Estate Services
Referral Fee
Service Area
Term
Transaction
Transaction Commission
Applicable Law
Broker Commission
Business Day
Closing
Commission Split
Confidential Information
Cooperating Broker
Effective Date
Gross Commission
Licensed Territory
Listing Agreement
MLS
Net Commission
Primary Broker
Property
Protected Information
Qualifying Transaction
Real Estate Services
Referral Fee
Service Area
Term
Transaction
Transaction Commission
Clauses
Commission Structure
Commission Split
Confidentiality
Cooperation Obligations
Dispute Resolution
Force Majeure
Governing Law
Indemnification
Insurance Requirements
Intellectual Property
Licensing Requirements
Non-Solicitation
Payment Terms
Referral Procedures
Relationship of Parties
Representations and Warranties
Service Area Definition
Term and Termination
Territory Restrictions
Transaction Procedures
Commission Split
Confidentiality
Cooperation Obligations
Dispute Resolution
Force Majeure
Governing Law
Indemnification
Insurance Requirements
Intellectual Property
Licensing Requirements
Non-Solicitation
Payment Terms
Referral Procedures
Relationship of Parties
Representations and Warranties
Service Area Definition
Term and Termination
Territory Restrictions
Transaction Procedures
Relevant Industries
Relevant Teams
Relevant Roles
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