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Business Broker Listing Agreement for Canada

Business Broker Listing Agreement Template for Canada

A Business Broker Listing Agreement is a legally binding contract used in Canadian jurisdictions that establishes an official relationship between a business broker and a business owner who wishes to sell their business. The agreement outlines the terms under which the broker will market and facilitate the sale of the business, including commission structures, exclusive rights, confidentiality obligations, and the duration of the listing. This document must comply with provincial regulations governing business brokers and real estate transactions, with specific requirements varying by province.

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Business Broker Listing Agreement

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What is a Business Broker Listing Agreement?

The Business Broker Listing Agreement is a crucial document used when a business owner decides to sell their business through a professional broker in Canada. This agreement serves as the foundation of the broker-seller relationship, outlining the broker's authority to market and negotiate the sale of the business, their compensation structure, and the terms of their engagement. It includes essential details about the business, asking price, commission rates, marketing strategies, and confidentiality requirements. The document must comply with provincial regulations and typically includes provisions for protecting both parties' interests throughout the sale process. This type of agreement is particularly important as it establishes clear expectations and legal obligations for both parties while ensuring compliance with relevant provincial business brokerage laws and regulations.

What sections should be included in a Business Broker Listing Agreement?

1. Parties: Identification of the business broker and the business owner/seller

2. Background: Context of the agreement and brief description of the business being listed

3. Definitions: Key terms used throughout the agreement including 'Sale', 'Commission', 'Listing Period', etc.

4. Appointment and Authority: Formal appointment of the broker and scope of authority granted

5. Exclusive Right to Sell: Terms of exclusivity and the broker's rights during the listing period

6. Listing Period: Duration of the agreement and any automatic renewal provisions

7. Broker's Obligations: Detailed services to be provided by the broker including marketing and showing the business

8. Seller's Obligations: Seller's responsibilities including providing information and facilitating showings

9. Commission Structure: Detailed breakdown of commission rates, when payable, and payment terms

10. Confidentiality: Provisions regarding handling of confidential business information

11. Representations and Warranties: Statements of fact by both parties about their authority and the business

12. Termination: Conditions and process for ending the agreement

13. General Provisions: Standard clauses including governing law, notices, and amendments

What sections are optional to include in a Business Broker Listing Agreement?

1. Co-Brokerage: Terms for working with other brokers, used when co-brokerage is permitted

2. Special Marketing Requirements: Specific marketing approaches or restrictions, included when special marketing needs exist

3. Post-Termination Obligations: Extended obligations after agreement ends, used for complex listings

4. International Sales: Additional provisions for international buyers, included when international marketing is planned

5. Dispute Resolution: Specific procedures for handling disputes, optional when standard court proceedings aren't preferred

6. Digital Marketing Rights: Specific provisions for online marketing, included when digital marketing is a significant component

7. Success Fee Structure: Complex compensation structures beyond standard commission, used for high-value businesses

What schedules should be included in a Business Broker Listing Agreement?

1. Schedule A - Business Description: Detailed description of the business, its assets, and operations

2. Schedule B - Listing Price and Terms: Agreed listing price, acceptable price range, and key terms of sale

3. Schedule C - Commission Schedule: Detailed breakdown of commission structures and calculation methods

4. Schedule D - Included/Excluded Assets: Specific lists of assets included or excluded from the sale

5. Schedule E - Confidential Information: Definition and handling requirements for confidential information

6. Schedule F - Marketing Plan: Detailed marketing strategy and activities to be undertaken

7. Appendix 1 - Required Documentation: List of documents the seller must provide to the broker

8. Appendix 2 - Disclosure Requirements: Mandatory disclosures required during the sale process

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions








































Clauses




































Relevant Industries

Business Services

Professional Services

Real Estate

Mergers & Acquisitions

Small Business

Retail

Manufacturing

Hospitality

Technology

Healthcare

Construction

Professional Practices

Distribution

Franchise

Service Industry

Relevant Teams

Legal

Finance

Executive Leadership

Business Development

Mergers & Acquisitions

Operations

Compliance

Corporate Secretariat

Risk Management

Commercial

Relevant Roles

Business Broker

M&A Advisor

Business Development Manager

Chief Executive Officer

Business Owner

Managing Director

Corporate Lawyer

Legal Counsel

Business Transfer Agent

Chief Financial Officer

Commercial Director

Operations Manager

Finance Director

Company Secretary

Business Valuation Specialist

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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