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Real Estate Commission Agreement Form

Real Estate Commission Agreement Form Template for Canada

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Key Requirements PROMPT example:

Real Estate Commission Agreement Form

"I need a Real Estate Commission Agreement Form for a luxury property development in Vancouver, with a tiered commission structure starting at 5% for the first $1M and 3% thereafter, including international marketing provisions and a 6-month holdover period beginning March 2025."

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Document background
The Real Estate Commission Agreement Form is a fundamental document used in Canadian real estate transactions to formalize the business relationship between real estate professionals and their clients. This agreement is essential when engaging a real estate agent or brokerage for property sales, purchases, or leasing services. It outlines the commission structure, payment terms, service scope, and obligations of all parties involved. The document must comply with provincial real estate regulations and professional standards, including those set by provincial real estate boards and regulatory bodies. It serves as a legally binding contract that protects both the real estate professional's right to compensation and the client's right to professional service.
Suggested Sections

1. Parties: Identifies the parties to the agreement: the real estate brokerage, individual agent(s), and the client (seller/buyer)

2. Background: Provides context for the agreement, including the property details and the client's intention to sell/buy

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Authority: Establishes the agent's authority to act on behalf of the client and the nature of the relationship

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

6. Commission Structure: Details the commission rate, calculation method, and when it becomes payable

7. Services to be Provided: Outlines the specific services the agent/brokerage will provide

8. Client's Obligations: Specifies the client's responsibilities and obligations under the agreement

9. Payment Terms: Details when and how the commission will be paid, including any holdback provisions

10. Termination: Explains how the agreement can be terminated and the consequences of termination

11. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable province

Optional Sections

1. Multiple Listing Service: Include when the property will be listed on MLS, specifying additional terms and costs

2. Holdover Period: Include to protect the agent's right to commission for a specified period after the agreement ends

3. Team Representation: Include when multiple agents from the same brokerage will be involved

4. Dual Agency: Include when the brokerage may represent both buyer and seller

5. International Marketing: Include when the property will be marketed internationally

6. Property Management: Include when the agreement includes property management services

7. Referral Fee Arrangements: Include when there are referral fee arrangements with other agents/brokerages

Suggested Schedules

1. Schedule A - Property Details: Detailed description of the property, including legal description and address

2. Schedule B - Commission Rate Structure: Detailed breakdown of commission rates, including any sliding scales or special circumstances

3. Schedule C - Marketing Plan: Detailed marketing strategy and activities to be undertaken

4. Schedule D - Service Package Details: Comprehensive list of services included in the agreement

5. Appendix 1 - Agency Disclosure: Required disclosures about the nature of the agency relationship

6. Appendix 2 - Professional Credentials: Agent's licensing and professional credentials

7. Appendix 3 - Brokerage Policies: Relevant brokerage policies that affect the commission agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions


































Clauses






























Relevant Industries

Real Estate

Property Development

Property Management

Commercial Real Estate

Residential Real Estate

Luxury Real Estate

Real Estate Investment

Property Investment

Construction

Urban Development

Relevant Teams

Legal

Compliance

Real Estate Operations

Sales

Contract Administration

Business Development

Transaction Processing

Commission Processing

Risk Management

Document Control

Relevant Roles

Real Estate Agent

Real Estate Broker

Property Manager

Real Estate Sales Representative

Brokerage Owner

Real Estate Director

Compliance Officer

Legal Counsel

Contract Administrator

Real Estate Operations Manager

Business Development Manager

Real Estate Transaction Coordinator

Commission Administrator

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

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