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Net Brokerage Agreement for Canada

Net Brokerage Agreement Template for Canada

A comprehensive commercial agreement governed by Canadian law that establishes the terms and conditions for brokerage services provided on a net fee basis. The agreement defines the relationship between a broker and their client, outlining services, compensation structure, responsibilities, and compliance requirements under Canadian federal and provincial regulations. It includes specific provisions for fee calculations, service scope, territorial limitations, and risk allocation, while ensuring compliance with relevant Canadian commercial and regulatory frameworks, including provincial broker regulations and federal privacy laws.

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Net Brokerage Agreement

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What is a Net Brokerage Agreement?

This Net Brokerage Agreement is designed for use in Canadian business transactions where a broker provides services for a net fee arrangement, typically in commercial, real estate, or financial service contexts. The document is essential when establishing a formal brokerage relationship where the broker's compensation is calculated on a net basis after accounting for specific expenses or adjustments. It incorporates requirements from Canadian federal and provincial legislation, including broker regulations, privacy laws, and commercial statutes. The agreement is particularly useful for ongoing brokerage relationships where transparency in fee structures and service expectations is crucial. It includes comprehensive provisions for service scope, territorial rights, compensation calculations, and regulatory compliance, making it suitable for both straightforward and complex brokerage arrangements within Canadian jurisdiction.

What sections should be included in a Net Brokerage Agreement?

1. Parties: Identification of the broker and the client, including full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intention to enter into a brokerage relationship

3. Definitions: Key terms used throughout the agreement, including 'Net Brokerage Fee', 'Services', 'Territory', and other relevant terms

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination by either party

6. Compensation Structure: Details of the net brokerage fee calculation, payment terms, and conditions

7. Broker's Obligations: Specific duties and responsibilities of the broker, including service standards and reporting requirements

8. Client's Obligations: Client's responsibilities, including information provision and cooperation requirements

9. Confidentiality: Provisions regarding handling of confidential information and trade secrets

10. Representations and Warranties: Standard representations by both parties regarding authority, capacity, and compliance

11. Limitation of Liability: Provisions limiting the broker's liability and specifying insurance requirements

12. General Provisions: Standard clauses including governing law, notices, assignment, and entire agreement

What sections are optional to include in a Net Brokerage Agreement?

1. Exclusivity: Section defining whether the broker has exclusive rights, used when exclusive arrangements are desired

2. Sub-Brokers: Provisions regarding the appointment and management of sub-brokers, used when sub-broker arrangements are permitted

3. International Transactions: Additional provisions for cross-border transactions, used when international business is contemplated

4. Digital Services: Provisions regarding online platforms or digital tools, used when digital services are part of the offering

5. Force Majeure: Provisions for unforeseen circumstances, used when additional risk protection is desired

6. Non-Solicitation: Restrictions on soliciting employees or clients, used when protecting business relationships is crucial

7. Dispute Resolution: Specific procedures for resolving disputes, used when alternative dispute resolution is preferred

What schedules should be included in a Net Brokerage Agreement?

1. Schedule A - Fee Schedule: Detailed breakdown of net brokerage fees, including calculation methods and examples

2. Schedule B - Services Description: Comprehensive list of services included in the agreement

3. Schedule C - Territory Definition: Detailed description or map of the geographical area covered

4. Schedule D - Reporting Requirements: Templates and schedules for required reports and communications

5. Schedule E - Compliance Requirements: Specific regulatory and compliance obligations applicable to the services

6. Appendix 1 - Standard Operating Procedures: Detailed procedures for common transactions and services

7. Appendix 2 - Contact Information: List of key contacts and escalation procedures for both parties

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

Real Estate

Insurance

Financial Services

Commodities Trading

Shipping and Logistics

Investment Banking

Commercial Property

Securities Trading

Import/Export

Business Services

Relevant Teams

Legal

Finance

Operations

Commercial

Business Development

Compliance

Risk Management

Procurement

Contract Administration

Broker Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Director

Head of Business Development

Broker Relations Manager

Legal Counsel

Compliance Officer

Risk Manager

Operations Director

Business Development Manager

Contract Manager

Procurement Manager

Finance Manager

Commercial Broker

Account 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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