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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."
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
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
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
Real Estate
Insurance
Financial Services
Recruitment
Sales and Marketing
Professional Services
Property Management
Mortgage Broking
Business Consulting
Commercial Leasing
Legal
Finance
Sales
Compliance
Operations
Business Development
Administration
Risk Management
Accounts Receivable
Contract Management
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
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