The Co-Broker Fee Agreement serves as a crucial document in real estate transactions where multiple brokers collaborate to facilitate property sales or leases. This agreement becomes necessary when brokers from different firms work together on transactions and need to formalize their commission-sharing arrangement. It addresses key aspects such as commission splits, responsibilities, territory restrictions, and compliance with U.S. federal and state real estate regulations. The document helps prevent disputes and ensures clear understanding of the financial arrangements between participating brokers.
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1. Parties: Identification of the cooperating brokers and their legal status
2. Background: Context of the cooperation and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Cooperation: Details of how the brokers will work together
5. Commission Split: Terms of fee sharing between brokers
6. Term and Termination: Duration of agreement and termination conditions
7. Confidentiality: Protection of shared information
1. Exclusivity: Terms of exclusive cooperation, used when brokers agree to work exclusively on certain properties
2. Territory: Geographic scope of cooperation, used when cooperation is limited to specific areas
3. Marketing Arrangements: Shared marketing responsibilities and costs, used when joint marketing efforts are planned
1. Schedule A - Commission Structure: Detailed breakdown of commission splits for different transaction types
2. Schedule B - Territory Map: Geographic boundaries of cooperation if applicable
3. Schedule C - Covered Properties: List of properties subject to the agreement if specific properties are involved
Relevant legal definitions
Clauses
Commission Split
Territory Designation
Term and Duration
Termination
Confidentiality
Scope of Cooperation
Representations and Warranties
Payment Terms
Non-Solicitation
Dispute Resolution
Indemnification
Force Majeure
Assignment
Notices
Governing Law
Entire Agreement
Amendment
Severability
Exclusivity
Marketing Obligations
Relevant Industries
Relevant Teams
Relevant Roles
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