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Real Estate Broker Fee Agreement for Canada

Real Estate Broker Fee Agreement Template for Canada

A legally binding agreement governed by Canadian provincial real estate laws that establishes the professional relationship between a real estate broker or brokerage and their client. The document outlines the scope of services to be provided, commission structures, payment terms, and the rights and obligations of both parties. It ensures compliance with provincial real estate regulations, consumer protection laws, and professional standards while providing clear guidelines for the broker-client relationship throughout the property transaction process.

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Real Estate Broker Fee Agreement

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What is a Real Estate Broker Fee Agreement?

The Real Estate Broker Fee Agreement is a fundamental document used in Canadian real estate transactions to formalize the relationship between real estate professionals and their clients. This agreement is essential when engaging a broker's services for property sales, purchases, or management, establishing clear terms for compensation and service delivery. The document must comply with provincial real estate regulations, which vary across Canadian jurisdictions, and typically includes detailed fee structures, service scope, duration of engagement, and obligations of all parties. It serves as a critical risk management tool by clearly defining expectations and responsibilities while ensuring compliance with provincial real estate boards' requirements and consumer protection legislation.

What sections should be included in a Real Estate Broker Fee Agreement?

1. Parties: Identification of the broker/brokerage and the client with full legal names and addresses

2. Background: Context of the agreement, including whether it relates to property sale, purchase, or both

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

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

5. Term of Agreement: Duration of the agreement, including start and end dates

6. Broker Services: Detailed description of services to be provided by the broker

7. Commission Structure: Detailed breakdown of fees, commission rates, and payment terms

8. Payment Terms: When and how payments are to be made, including conditions for commission becoming due

9. Client Obligations: Responsibilities and commitments of the client during the agreement period

10. Broker Obligations: Professional commitments and responsibilities of the broker

11. Termination: Conditions and process for ending the agreement, including any holdover provisions

12. Governing Law: Specification of applicable provincial law and jurisdiction

13. Entire Agreement: Statement that the document represents the complete agreement between parties

What sections are optional to include in a Real Estate Broker Fee Agreement?

1. Multiple Listing Service: Terms related to MLS listing services, used when the property will be listed on MLS

2. Team Members: Details of additional team members who may assist with the services, used when multiple agents are involved

3. International Transactions: Additional terms for international buyers/sellers, used when foreign parties are involved

4. Property Management: Terms related to property management services, used when agreement includes management services

5. Digital Services: Terms related to virtual tours, online marketing, etc., used when digital services are specifically included

6. Referral Arrangements: Terms governing referral fees and arrangements, used when referral partnerships are involved

7. Holdback Provisions: Terms related to commission holdbacks, used in complex transactions or when required by circumstances

What schedules should be included in a Real Estate Broker Fee Agreement?

1. Schedule A - Fee Schedule: Detailed breakdown of all fees, commission rates, and payment structures

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

3. Schedule C - Property Details: Specific property information when agreement relates to particular properties

4. Schedule D - Marketing Plan: Detailed marketing strategy and commitments

5. Appendix 1 - Required Disclosures: Mandatory disclosures required by provincial real estate regulations

6. Appendix 2 - Agency Relationships: Explanation of agency relationships and obligations

7. Appendix 3 - Privacy Policy: Details of how personal information will be collected, used, and protected

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

Property Development

Commercial Property

Residential Property

Property Management

Real Estate Investment

Construction

Corporate Real Estate

Retail Property

Industrial Property

Relevant Teams

Legal

Real Estate Operations

Sales

Compliance

Contract Administration

Business Development

Property Management

Transaction Processing

Investment Analysis

Risk Management

Relevant Roles

Real Estate Broker

Real Estate Agent

Property Manager

Real Estate Development Manager

Corporate Real Estate Manager

Real Estate Investment Manager

Compliance Officer

Legal Counsel

Contract Administrator

Business Development Manager

Sales Director

Property Portfolio Manager

Real Estate Operations Manager

Transaction Coordinator

Real Estate Analyst

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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