The Commission Agreement Between Broker And Agent serves as the foundational document governing the professional relationship between brokers and their agents in the United States real estate industry. This agreement is essential when establishing new broker-agent relationships or formalizing existing ones. It covers crucial aspects such as commission structures, payment terms, duties, obligations, and compliance requirements with both federal and state regulations. The document is particularly important as it helps prevent disputes, ensures clear understanding of expectations, and provides legal protection for both parties while maintaining compliance with real estate laws and regulations.
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1. Parties: Identification of the broker and agent, including license numbers
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Authority: Agent's authorized activities and limitations
5. Commission Structure: Details of commission rates, splits, and payment terms
6. Term and Termination: Duration of agreement and termination conditions
7. Obligations and Responsibilities: Duties of both broker and agent
8. Compliance with Laws: Requirements for compliance with federal, state, and local laws
9. Insurance and Liability: Insurance requirements and liability provisions
10. Dispute Resolution: Procedures for handling disputes between parties
1. Non-Compete Clause: Restrictions on competitive activities after termination
2. Training Requirements: Mandatory training and development obligations
3. Marketing Guidelines: Rules for advertising and brand usage
4. Confidentiality: Protection of confidential information and trade secrets
5. Equipment and Resources: Provisions regarding use of broker's equipment and resources
1. Schedule A - Commission Schedule: Detailed breakdown of commission structures and scenarios
2. Schedule B - Required Forms: Standard forms and documents required for transactions
3. Schedule C - Office Policies: Broker's standard operating procedures and policies
4. Schedule D - Technology Requirements: Required software, systems, and technology protocols
5. Schedule E - Training Program: Details of required training programs and certifications
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