The Independent Broker Agreement serves as the foundational document for establishing a professional relationship between companies and independent brokers in the United States. This agreement is essential when engaging brokers who will represent the company's interests while maintaining their independent contractor status. It addresses crucial aspects such as compensation structures, compliance requirements, and scope of authority, while ensuring alignment with federal and state regulations. The document is particularly important for maintaining clear boundaries in the working relationship and protecting both parties' interests in various industries, from real estate to financial services.
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1. Parties: Identification of the contracting parties including full legal names, addresses, and any registration numbers
2. Background: Context and purpose of the agreement, including any relevant business context
3. Definitions: Key terms used throughout the agreement including industry-specific terminology
4. Scope of Services: Detailed description of broker's duties, responsibilities, and authorized activities
5. Independent Contractor Status: Clear statement of independent contractor relationship and its implications
6. Compensation: Commission structure, payment terms, and calculation methods
7. Term and Termination: Duration of agreement and conditions for termination by either party
8. Compliance Requirements: Regulatory obligations, reporting requirements, and legal compliance duties
9. Representations and Warranties: Statements of fact and promises made by each party regarding qualifications and capabilities
10. Confidentiality: Protection of confidential information and trade secrets
1. Non-Compete: Restrictions on competitive activities during and after the agreement term
2. Insurance Requirements: Specific insurance coverage requirements and minimum coverage amounts
3. Territory Rights: Geographic limitations and exclusivity provisions for broker services
4. Training Requirements: Mandatory training programs, certifications, and ongoing education requirements
5. Marketing and Advertising: Guidelines for broker's marketing activities and use of company branding
1. Schedule A - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule B - Territory Map: Geographic definition of broker's authorized territory if applicable
3. Schedule C - Required Licenses: List of mandatory licenses, certifications, and qualifications
4. Schedule D - Compliance Procedures: Detailed compliance requirements, reporting procedures, and regulatory obligations
5. Schedule E - Approved Products/Services: List of products or services the broker is authorized to sell or promote
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