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Commercial Real Estate Commission Agreement for Canada

Commercial Real Estate Commission Agreement Template for Canada

This document is a comprehensive legal agreement used in Canadian jurisdictions to establish and govern the commercial relationship between a real estate broker/agency and their client regarding commission payments for commercial real estate transactions. It outlines the terms and conditions under which the broker will provide services, including the commission structure, payment terms, scope of services, and the parties' respective obligations. The agreement complies with Canadian provincial real estate regulations and commercial contract laws, incorporating necessary provisions for GST/HST considerations and provincial-specific requirements for real estate transactions.

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Commercial Real Estate Commission Agreement

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What is a Commercial Real Estate Commission Agreement?

The Commercial Real Estate Commission Agreement is essential for professional real estate transactions in Canada, serving as the foundational document that governs the financial relationship between commercial real estate brokers and their clients. This agreement is typically used when engaging professional real estate services for commercial property sales, leases, or other transactions where commission-based compensation is involved. It includes detailed provisions for commission structures, payment triggers, and service scope, while ensuring compliance with provincial real estate regulations and federal tax requirements. The document becomes particularly important in complex commercial transactions where significant commission amounts may be at stake and where multiple parties or properties may be involved. It provides legal protection for both the broker and the client by clearly defining expectations, obligations, and compensation terms.

What sections should be included in a Commercial Real Estate Commission Agreement?

1. Parties: Identifies and provides full legal details of the client and the real estate broker/agent

2. Background: Establishes the context of the agreement, including the broker's qualifications and client's intention to engage their services

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Property', 'Transaction' and 'Closing'

4. Appointment and Authority: Formally establishes the broker's appointment and scope of authority

5. Services to be Provided: Details the specific services the broker will provide

6. Commission Structure: Specifies the commission rates, calculation methods, and payment terms

7. Payment Terms: Outlines when and how commissions will be paid, including any deposit requirements

8. Term and Termination: Specifies the duration of the agreement and conditions for termination

9. Obligations of the Broker: Lists the broker's duties, responsibilities, and standard of service

10. Obligations of the Client: Details the client's responsibilities and cooperation requirements

11. Representations and Warranties: Contains standard representations from both parties

12. Confidentiality: Addresses handling of confidential information

13. Dispute Resolution: Outlines the process for resolving any disputes

14. General Provisions: Includes standard boilerplate clauses like governing law, amendments, and notices

What sections are optional to include in a Commercial Real Estate Commission Agreement?

1. Protection Period: Defines post-termination period during which commission may still be payable; include when working with sophisticated clients

2. Sub-Agents: Include when the broker may need to engage other agents or brokers

3. Marketing Budget: Include when specific marketing expenses will be shared or reimbursed

4. Performance Metrics: Include when specific performance standards or targets are agreed upon

5. International Transactions: Include for clients dealing with international properties or buyers

6. Multiple Property Provisions: Include when agreement covers multiple properties

7. Commission Sharing: Include when commissions may be shared with other brokers

8. Digital Marketing Rights: Include when specific digital marketing provisions are needed

What schedules should be included in a Commercial Real Estate Commission Agreement?

1. Schedule A - Property Details: Detailed description of the property(ies) covered by the agreement

2. Schedule B - Commission Rates: Detailed breakdown of commission structures for different transaction types

3. Schedule C - Services Description: Comprehensive list of services to be provided by the broker

4. Schedule D - Marketing Plan: Detailed marketing strategy and budget if applicable

5. Appendix 1 - Broker Credentials: Copies of broker's licenses and certifications

6. Appendix 2 - Agency Disclosure: Required regulatory disclosures about agency relationships

7. Appendix 3 - Fee Schedule: Detailed breakdown of any additional fees or charges

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

Commercial Real Estate

Retail

Office Space

Industrial

Hospitality

Mixed-Use Development

Healthcare Real Estate

Logistics and Warehousing

Multi-family Residential

Professional Services

Real Estate Investment

Property Management

Real Estate Development

Corporate Real Estate

Relevant Teams

Legal

Real Estate

Operations

Finance

Business Development

Asset Management

Property Management

Investment

Risk Management

Compliance

Facilities

Contract Administration

Relevant Roles

Commercial Real Estate Broker

Real Estate Agent

Property Acquisition Manager

Real Estate Investment Manager

Corporate Real Estate Manager

Asset Manager

Property Portfolio Manager

Real Estate Director

Chief Investment Officer

Real Estate Operations Manager

Facilities Manager

Legal Counsel

Contracts Manager

Business Development Manager

Real Estate Transaction Manager

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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