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Commission Split Agreement Between Agents Template for Hong Kong

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Key Requirements PROMPT example:

Commission Split Agreement Between Agents

"I need a Commission Split Agreement Between Agents for a senior-junior agent arrangement within my Hong Kong real estate agency, where the senior agent will receive 70% of commissions for the first 6 months starting January 2025, with the split gradually moving to 50-50 over the following year."

Document background
The Commission Split Agreement Between Agents is a crucial document in the Hong Kong real estate industry, designed to formalize collaborative arrangements between licensed real estate agents. This agreement is typically used when agents decide to work together on property transactions, whether within the same agency or across different agencies. It becomes particularly relevant in situations involving senior-junior agent mentoring relationships, team-based selling arrangements, or cross-agency collaborations. The document must comply with the Estate Agents Ordinance (Cap. 511) and related Hong Kong regulations, including requirements for proper documentation of commission arrangements and client handling procedures. It contains detailed provisions for commission calculations, payment schedules, dispute resolution, and professional conduct standards, making it essential for maintaining transparent and professional relationships between collaborating agents.
Suggested Sections

1. Parties: Identification of the agents entering into the agreement, including their license numbers and agency affiliations

2. Background: Context of the agreement, including the purpose and nature of the collaboration

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Transaction', 'Client', etc.

4. Commission Split Structure: Details of how commissions will be divided between the agents, including percentages or fixed ratios

5. Duties and Responsibilities: Specific roles and obligations of each agent in the collaboration

6. Term and Termination: Duration of the agreement and conditions for termination

7. Payment Terms: Process and timing for commission calculations and payments

8. Confidentiality: Obligations regarding client information and business secrets

9. Dispute Resolution: Process for resolving disagreements between the agents

10. Governing Law: Specification of Hong Kong law as the governing law

Optional Sections

1. Team Operation Guidelines: Include when agents are forming a team structure rather than a simple partnership

2. Cross-Agency Protocols: Required when agents from different agencies are collaborating

3. Marketing and Branding: Include when there are specific arrangements about shared marketing efforts and brand usage

4. Training and Support: Add when senior agents are providing mentoring or training to junior agents

5. Non-Compete Provisions: Include when there are restrictions on working with other agents or agencies

6. Client Allocation: Add when specific rules about client assignment and handling are needed

Suggested Schedules

1. Schedule 1 - Commission Split Calculations: Detailed breakdown of commission split percentages for different types of transactions

2. Schedule 2 - Covered Properties: List of properties or property types covered under the agreement

3. Schedule 3 - Expense Sharing: Breakdown of shared business expenses and allocation between agents

4. Appendix A - Required Forms: Standard forms and templates to be used for commission calculations and payments

5. Appendix B - Compliance Checklist: Checklist ensuring compliance with Estate Agents Ordinance requirements

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 Development

Property Management

Professional Services

Financial Services

Property Investment

Relevant Teams

Real Estate Sales

Legal

Compliance

Finance

Operations

Property Management

Marketing

Administration

Relevant Roles

Real Estate Agent

Senior Real Estate Agent

Property Consultant

Real Estate Team Leader

Branch Manager

Agency Director

Compliance Officer

Legal Counsel

Finance Manager

Operations Manager

Property Marketing Specialist

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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