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Broker Lease Commission Agreement for Canada

Broker Lease Commission Agreement Template for Canada

This document is a comprehensive agreement that establishes the terms and conditions under which a real estate broker will receive commission for securing tenants and executing lease agreements on behalf of a property owner or landlord. Governed by Canadian real estate and contract law, including provincial regulations, it outlines commission structures, payment terms, broker responsibilities, and protection periods. The agreement includes specific provisions for commission calculations, timing of payments, and the scope of the broker's services in the Canadian commercial real estate market.

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What is a Broker Lease Commission Agreement?

The Broker Lease Commission Agreement serves as a crucial document in commercial real estate transactions across Canada, establishing the financial relationship between property owners and real estate brokers. This agreement is essential when property owners seek professional representation for leasing their commercial properties, requiring clear documentation of commission structures and payment obligations. It ensures compliance with provincial real estate regulations and federal laws while protecting both parties' interests. The document typically comes into play at the beginning of a leasing mandate and remains active throughout the specified term, often including protection periods for the broker's efforts. It includes detailed commission calculations, payment schedules, and specific terms for various leasing scenarios, making it a fundamental tool for professional real estate services in the Canadian market.

What sections should be included in a Broker Lease Commission Agreement?

1. Parties: Identifies the parties to the agreement - the property owner/landlord and the broker/brokerage firm

2. Background: Provides context about the property, the broker's services, and the purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement including 'Lease', 'Commission', 'Gross Rent', etc.

4. Appointment and Authority: Establishes the broker's appointment and scope of authority to represent the property

5. Commission Structure: Details the basic commission rates and calculation methods

6. Payment Terms: Specifies when and how commissions will be paid, including any installment arrangements

7. Broker's Services: Outlines the specific services the broker will provide in marketing and leasing the property

8. Term and Termination: Specifies the duration of the agreement and conditions for termination

9. Protection Period: Defines the period after termination during which the broker may still be entitled to commission

10. Representations and Warranties: Standard declarations by both parties regarding their authority and capacity

11. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable province

12. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Broker Lease Commission Agreement?

1. Multiple Property Provisions: Used when the agreement covers multiple properties with potentially different commission structures

2. Co-Broker Arrangements: Included when cooperation with other brokers is anticipated, specifying commission sharing

3. Performance Metrics: Optional section defining specific performance targets or service levels

4. Marketing Budget: Details any specific marketing budget arrangements and cost responsibilities

5. Renewal Commissions: Specific provisions for commissions on lease renewals or extensions

6. Dispute Resolution: Optional detailed procedures for handling disputes through mediation or arbitration

7. Exclusive Agency Terms: Used when the agreement is exclusive, defining the terms of exclusivity

What schedules should be included in a Broker Lease Commission Agreement?

1. Schedule A - Property Details: Detailed description of the property or properties covered by the agreement

2. Schedule B - Commission Rate Schedule: Detailed breakdown of commission rates for different lease scenarios

3. Schedule C - Marketing Plan: Detailed marketing strategy and activities to be undertaken

4. Schedule D - Broker Team: List of key broker personnel assigned to the property

5. Appendix 1 - Commission Examples: Sample calculations showing how commissions will be calculated in various scenarios

6. Appendix 2 - Required Documentation: List of documents required for commission payment processing

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Industrial

Healthcare

Hospitality

Mixed-Use Development

Logistics

Manufacturing

Relevant Teams

Real Estate

Legal

Finance

Operations

Asset Management

Property Management

Facilities

Investment

Risk Management

Procurement

Relevant Roles

Real Estate Broker

Property Manager

Asset Manager

Leasing Director

Chief Financial Officer

Real Estate Director

Legal Counsel

Commercial Property Manager

Portfolio Manager

Leasing Agent

Real Estate Operations Manager

Facilities Manager

Investment Manager

Transaction 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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