The Co-Broker Agreement (Real Estate) is essential when two real estate brokers or brokerage firms wish to formalize their working relationship for mutual benefit. This document becomes necessary when brokers from different firms collaborate on property transactions, share listings, or work across different geographical areas or specializations. The agreement ensures compliance with U.S. federal regulations such as RESPA and state-specific real estate laws while protecting both parties' interests through clear delineation of responsibilities, commission structures, and dispute resolution procedures. It's particularly valuable in today's interconnected real estate market where cross-firm collaboration is increasingly common.
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1. Parties: Identification of the cooperating brokers and their legal status
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Cooperation: Details of how the brokers will work together
5. Commission Split: Terms of commission sharing between brokers
6. Term and Termination: Duration of agreement and termination conditions
7. Confidentiality: Protection of confidential information between brokers
8. Representations and Warranties: Legal assurances from each party regarding their authority and compliance
9. Dispute Resolution: Procedures for resolving conflicts between the parties
10. General Provisions: Standard legal clauses including governing law, notices, and amendments
1. Exclusive Territories: Geographic limitations of cooperation, used when brokers want to define specific market areas
2. Marketing Responsibilities: Allocation of marketing duties and cost-sharing arrangements
3. Referral Procedures: Process for handling client referrals between brokers
4. Technology Integration: Terms for sharing and using technological resources between brokers
5. Training Requirements: Specific training or certification requirements for participating agents
1. Schedule A - Commission Schedule: Detailed breakdown of commission splits for different transaction types
2. Schedule B - Territory Map: Visual representation of exclusive territories if applicable
3. Schedule C - Marketing Guidelines: Specific requirements for co-marketing activities
4. Schedule D - Required State Disclosures: State-mandated forms and disclosures
5. Schedule E - Approved Marketing Materials: Templates and guidelines for joint marketing materials
Relevant legal definitions
Clauses
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