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Commission Split Agreement Between Agents Template for Australia

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Key Requirements PROMPT example:

Commission Split Agreement Between Agents

"I need a Commission Split Agreement Between Agents for a mentorship arrangement where a senior agent (with 15 years experience) will work with a junior agent, with an initial 70-30 split for the first 6 months starting January 2025, then transitioning to a 60-40 split."

Document background
The Commission Split Agreement Between Agents is essential for real estate professionals in Australia who wish to formalize their commission-sharing arrangements. This document becomes necessary when two or more agents decide to collaborate on property transactions, whether working within the same agency or across different agencies. It provides a clear framework for how commissions will be divided, ensuring transparency and preventing potential disputes. The agreement takes into account Australian real estate regulations, tax implications, and state-specific requirements for commission arrangements. It is particularly valuable for situations involving mentor-mentee relationships, team collaborations, or cross-office partnerships. The document includes detailed provisions for various scenarios such as property sales, leasing transactions, and referral arrangements, while ensuring compliance with Australian consumer protection laws and real estate industry standards.
Suggested Sections

1. Parties: Identifies and provides full details of the agents entering into the commission split agreement

2. Background: Outlines the context of the agreement and the agents' intention to collaborate and share commissions

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Property Transaction', 'Listing Agent', 'Selling Agent', etc.

4. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions

5. Commission Split Structure: Details the agreed-upon commission split percentages and how they will be calculated

6. Payment Terms: Outlines when and how commission payments will be processed and distributed between parties

7. Roles and Responsibilities: Defines each agent's duties and obligations in relation to property transactions

8. Confidentiality: Addresses the handling of confidential information between agents

9. Termination: Specifies conditions under which the agreement can be terminated and the process for termination

10. Dispute Resolution: Outlines the process for resolving any disputes between the agents

11. Governing Law: Specifies that the agreement is governed by Australian law and the relevant state jurisdiction

Optional Sections

1. Non-Compete Clause: Optional provisions restricting agents from competing directly with each other in specific circumstances

2. Team Branding: Details about how the agents will present themselves to the public if working as a team

3. Marketing Cost Sharing: Specifies how marketing and advertising costs will be shared between the agents

4. Cross-Office Arrangements: Special provisions for agents working across different offices or agencies

5. Training and Mentoring: Provisions for senior agents mentoring junior agents including any adjusted commission splits

6. Referral Fee Structure: Additional terms for handling referral fees from external sources

7. Performance Metrics: Specific performance targets and any impact on commission splits

8. Insurance Requirements: Additional insurance requirements beyond standard professional indemnity coverage

Suggested Schedules

1. Schedule A - Commission Split Calculator: Detailed formulas and examples for calculating commission splits in various scenarios

2. Schedule B - Transaction Procedures: Step-by-step procedures for handling different types of property transactions

3. Schedule C - Marketing Materials: Approved templates and guidelines for joint marketing materials

4. Schedule D - Expense Allocation: Detailed breakdown of shared expenses and payment responsibilities

5. Appendix 1 - Contact Details: Complete contact information for all parties and relevant staff members

6. Appendix 2 - Compliance Checklist: Checklist ensuring all regulatory requirements are met in the commission splitting arrangement

Authors

Alex Denne

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

Relevant legal definitions

































Clauses






























Relevant Industries

Real Estate

Property Management

Commercial Property

Residential Property

Luxury Real Estate

Property Development

Property Investment

Relevant Teams

Sales

Property Management

Commercial Real Estate

Residential Sales

Luxury Properties

Business Development

Compliance

Finance

Legal

Operations

Relevant Roles

Real Estate Agent

Senior Real Estate Agent

Junior Real Estate Agent

Property Consultant

Sales Director

Real Estate Broker

Agency Principal

Real Estate Team Leader

Commission Manager

Sales Manager

Broker-in-Charge

Compliance Officer

Real Estate Partnership Manager

Business Development Manager

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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