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Commercial Broker Fee Agreement for the United Kingdom

Commercial Broker Fee Agreement Template for United States

A Commercial Broker Fee Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which a commercial real estate broker will provide services and receive compensation. The agreement outlines the broker's duties, commission structure, payment terms, and any exclusive rights granted to the broker. It typically includes specific provisions required by state real estate laws and regulatory requirements.

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Commercial Broker Fee Agreement

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What is a Commercial Broker Fee Agreement?

The Commercial Broker Fee Agreement serves as the foundational document establishing the business relationship between commercial real estate brokers and their clients in the United States. This agreement is essential when engaging a broker for commercial property transactions, whether for sale, lease, or development. It protects both parties by clearly defining the scope of services, commission structures, and payment terms. The document must comply with federal regulations such as RESPA and state-specific real estate laws, making it a crucial tool for professional commercial real estate transactions.

What sections should be included in a Commercial Broker Fee Agreement?

1. Parties: Identification of broker and client, including legal names, addresses, and licensing details

2. Background: Context of the agreement and brief description of the commercial property transaction

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

4. Scope of Services: Detailed description of broker's duties and responsibilities

5. Commission Structure: Fee amounts, payment terms, and conditions for earning commission

6. Term and Termination: Duration of agreement and termination provisions

7. Representations and Warranties: Statements of fact by both parties regarding authority, licensing, etc.

8. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

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

1. Protection Period: Post-termination period during which broker may still earn commission

2. Exclusive Rights: Terms of exclusivity for broker's services

3. Sub-Broker Provisions: Terms for working with other brokers

4. Marketing Budget: Details of marketing expenses and reimbursement

What schedules should be included in a Commercial Broker Fee Agreement?

1. Schedule A - Property Details: Specific information about the property being marketed/sold

2. Schedule B - Commission Schedule: Detailed breakdown of commission rates and calculations

3. Schedule C - Broker Services: Detailed list of specific services to be provided

4. Appendix 1 - Broker's License: Copy of broker's current license and certifications

5. Appendix 2 - Marketing Plan: Detailed marketing strategy and timeline (if applicable)

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

United States

Document Type

Broker Agreement

Cost

Free to use
Clauses































Industries

RESPA: Real Estate Settlement Procedures Act - Federal law governing real estate transactions and settlement processes, including fee disclosures and prohibitions on kickbacks

TILA: Truth in Lending Act - Federal regulation requiring transparent disclosure of credit terms and costs in real estate transactions

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on protected characteristics including race, color, religion, sex, national origin, disability, and familial status

Federal Anti-Trust Laws: Sherman Act and Clayton Act provisions preventing anti-competitive behavior, price fixing, and monopolistic practices in real estate brokerage

State Real Estate Commission Regulations: State-specific rules governing broker conduct, licensing requirements, and professional standards for real estate transactions

State Commercial Brokerage Laws: State-level regulations specifically governing commercial real estate transactions, including commission structures and broker responsibilities

Uniform Commercial Code: State-adopted standardized business laws governing commercial transactions, including contract formation and enforcement

State Contract Laws: State-specific requirements for valid contract formation, including Statute of Frauds provisions for real estate transactions

NAR Code of Ethics: Professional standards and ethical guidelines established by the National Association of REALTORS喔⑧笌 for member conduct

IRS Reporting Requirements: Federal tax regulations governing the reporting of broker commissions, including 1099 filing obligations and income reporting requirements

State Disclosure Requirements: State-mandated disclosures regarding agency relationships, material facts, and compensation structures in broker agreements

Agency Relationship Laws: State laws defining and governing the fiduciary responsibilities between brokers and their clients

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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