The Business Broker Listing Agreement is a crucial document used in the Australian business sale market when a business owner engages a professional broker to facilitate the sale of their business. This agreement is essential for establishing clear terms of engagement, defining the scope of the broker's authority, and protecting both parties' interests throughout the sale process. It must comply with Australian federal and state legislation, including the Property Stock and Business Agents Act, Competition and Consumer Act, and relevant state-specific regulations. The document typically includes detailed provisions for commission structures, marketing authorizations, confidentiality requirements, and the broker's specific obligations. It's particularly important in establishing whether the appointment is exclusive or non-exclusive and defining the protection period for the broker's commission rights.
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1. Parties: Identifies and provides full details of the business broker and the business owner/seller
2. Background: Outlines the context of the agreement, including brief description of the business being listed and the broker's services
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Appointment and Authority: Establishes the broker's appointment, whether exclusive or non-exclusive, and scope of authority
5. Term of Agreement: Specifies the duration of the listing agreement, including start and end dates
6. Broker's Services: Details the specific services to be provided by the broker
7. Commission Structure: Outlines the broker's fees, commission rates, and payment terms
8. Seller's Obligations: Lists the business owner's responsibilities and commitments
9. Confidentiality: Specifies confidentiality obligations regarding business information
10. Marketing Authorization: Details the agreed marketing approach and authorized promotional activities
11. Termination: Specifies conditions and process for terminating the agreement
12. Dispute Resolution: Outlines the process for resolving disputes between parties
13. General Provisions: Includes standard legal provisions such as governing law, notices, and entire agreement
1. Post-Termination Obligations: Used when there's a need to specify ongoing obligations after the agreement ends, particularly for commission on delayed sales
2. Interstate Operations: Include when the business has operations across multiple states requiring specific compliance measures
3. Digital Marketing Provisions: Added when specific digital marketing strategies and online platforms will be used
4. Sub-broker Authorization: Include when the broker may need to engage other brokers or agents
5. Success Fee Structure: Used when including additional performance-based compensation beyond standard commission
6. Intellectual Property Protection: Include when the business involves significant IP assets requiring special handling
7. Employee Communication Protocol: Added when specific procedures for communicating with business employees are needed
1. Schedule A - Business Description: Detailed description of the business, including assets, operations, and financial overview
2. Schedule B - Commission Schedule: Detailed breakdown of commission structures, including any sliding scales or special conditions
3. Schedule C - Approved Marketing Material: Templates or examples of authorized marketing materials and content
4. Schedule D - Confidential Information: Specific list of information classified as confidential
5. Schedule E - Due Diligence Checklist: List of required documents and information for due diligence
6. Appendix 1 - Marketing Plan: Detailed marketing strategy and timeline
7. Appendix 2 - Required Disclosures: Mandatory disclosures required by relevant legislation
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