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Agent To Agent Commission Agreement Generator for the USA

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Key Requirements PROMPT example:

Agent To Agent Commission Agreement

"I need an Agent to Agent Commission Agreement between two real estate brokers in California, with a 60/40 commission split for residential property sales and a specific clause about international client referrals, to be effective from March 1, 2025."

Document background
The Agent to Agent Commission Agreement is essential when multiple agents collaborate on transactions or share referrals. This document is commonly used in the United States across various industries where commission-based compensation is prevalent. It provides a clear framework for commission splits, protecting all parties' interests and ensuring compliance with federal and state regulations. The agreement is particularly important in situations involving cross-territory referrals, co-listing arrangements, or collaborative sales efforts, helping prevent misunderstandings and disputes over commission distribution.
Suggested Sections

1. Parties: Identification of the agents entering into the agreement including their legal names, addresses, and licensing details

2. Background: Context of the agreement, explaining the purpose and relationship between the agents

3. Definitions: Key terms used throughout the agreement including 'Commission', 'Territory', 'Clients', and other relevant terminology

4. Commission Structure: Detailed explanation of commission splits, calculation methods, and payment arrangements between agents

5. Payment Terms: Timing and method of commission payments, including invoicing procedures and payment deadlines

6. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination or modification

7. Representations and Warranties: Statements confirming each agent's qualifications, licenses, and authority to enter into the agreement

8. Compliance with Laws: Obligations to comply with relevant real estate laws, regulations, and professional standards

9. General Provisions: Standard contract clauses including governing law, entire agreement, and amendments

Optional Sections

1. Non-Compete Clause: Optional restrictions on competitive activities, typically used when protecting specific territory or client relationships

2. Confidentiality: Provisions for protecting sensitive information and client data, recommended when sharing proprietary information

3. Dispute Resolution: Specific procedures for resolving disagreements through arbitration or mediation

4. Territory Definition: Geographic scope limitations of the agreement, used when operations are limited to specific areas

5. Marketing and Branding: Guidelines for joint marketing efforts and brand usage, relevant when agents collaborate on marketing

Suggested Schedules

1. Schedule A - Commission Rate Schedule: Detailed breakdown of commission rates, splits, and special arrangements

2. Schedule B - Territory Map: Visual representation and description of geographic coverage area if applicable

3. Schedule C - Required Forms: Standard forms and documentation required for commission processing

4. Schedule D - Contact Information: List of key contacts, roles, and communication protocols

Authors

Alex Denne

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

Clauses






























Industries

RESPA: Real Estate Settlement Procedures Act - Federal law governing real estate transactions and prohibiting kickbacks or referral fees in real estate settlements

Federal Anti-Kickback Laws: Laws prohibiting improper payments or compensation for referrals in various business contexts

Internal Revenue Code: Federal tax regulations governing the reporting and taxation of commission payments between agents

Federal Antitrust Laws: Sherman Act and Clayton Act provisions preventing anti-competitive practices and price fixing between agents

State Real Estate Commission Regulations: State-specific rules governing real estate transactions and agent conduct within each jurisdiction

State Licensing Requirements: Mandatory licensing and certification requirements for agents operating within specific states

State Contract Laws: State-specific regulations governing contract formation, enforcement, and interpretation

State Antitrust Laws: State-level regulations preventing unfair competition and monopolistic practices

NAR Guidelines: National Association of REALTORSยฎ professional standards and ethical guidelines for member conduct

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Worker Classification Laws: Regulations governing the distinction between independent contractors and employees

Consumer Protection Laws: State and federal regulations designed to protect consumer interests and require proper disclosures

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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