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Split Commission Agreement Template for New Zealand

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Key Requirements PROMPT example:

Split Commission Agreement

"I need a Split Commission Agreement for my real estate agency to formalize a 60/40 commission split arrangement between senior and junior agents, with the agreement starting from March 1, 2025, and including provisions for mentorship responsibilities."

Document background
This Split Commission Agreement template addresses the common need for a formal arrangement between parties who agree to share commission income from business activities. It is particularly relevant in situations where multiple parties contribute to a sale or service and need to divide the resulting commission. The document is drafted in compliance with New Zealand law, including relevant provisions of the Financial Markets Conduct Act 2013, Real Estate Agents Act 2008, and other applicable legislation. It includes essential elements such as commission calculation methods, payment terms, party obligations, and dispute resolution procedures. This template is commonly used in real estate transactions, financial services, insurance sales, and other commission-based business activities where clear documentation of revenue sharing arrangements is crucial for all parties involved.
Suggested Sections

1. Parties: Identifies all parties to the agreement, including their full legal names, addresses, and business details

2. Background: Explains the context of the agreement, the business relationship between the parties, and the purpose of the commission-splitting arrangement

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

4. Commission Structure: Details the agreed-upon commission split percentages or ratios between the parties

5. Payment Terms: Specifies when and how commission payments will be calculated, processed, and distributed

6. Obligations of the Parties: Outlines the responsibilities and duties of each party in relation to earning and sharing commissions

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

8. Dispute Resolution: Establishes procedures for resolving disagreements about commission calculations or payments

9. Confidentiality: Protects sensitive business information shared between the parties

10. General Provisions: Includes standard legal clauses such as governing law, entire agreement, and amendments

Optional Sections

1. International Payments: Required when parties are in different countries, addressing currency conversion and international transfer fees

2. Multiple Party Split: Used when commission is split between more than two parties

3. Non-Compete: Added when parties wish to restrict competitive activities

4. Referral Fee Structure: Included when the agreement involves referral fees in addition to commission splits

5. Territory Restrictions: Defines geographical limitations on the commission-splitting arrangement

6. Insurance Requirements: Specifies required insurance coverage for parties

7. Performance Metrics: Establishes performance criteria that affect commission splits

8. Training and Support: Details any training or support obligations between the parties

Suggested Schedules

1. Schedule 1 - Commission Calculation Method: Detailed methodology for calculating commission splits, including examples

2. Schedule 2 - Eligible Transactions: List of transaction types that qualify for commission splitting

3. Schedule 3 - Payment Process: Step-by-step process for commission payment and distribution

4. Schedule 4 - Reporting Requirements: Templates and timing for commission reports and reconciliations

5. Appendix A - Commission Split Examples: Practical examples showing how commissions will be split in various scenarios

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

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

Insurance

Financial Services

Recruitment

Sales and Marketing

Professional Services

Property Management

Mortgage Broking

Business Consulting

Commercial Leasing

Relevant Teams

Legal

Finance

Sales

Compliance

Operations

Business Development

Administration

Risk Management

Accounts Receivable

Contract Management

Relevant Roles

Real Estate Agent

Insurance Broker

Financial Advisor

Sales Manager

Business Development Manager

Commission Administrator

Compliance Officer

Legal Counsel

Finance Manager

Operations Manager

Managing Director

Recruitment Consultant

Property Manager

Contract Administrator

Agency Principal

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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