The Broker Fee Split Agreement serves as a foundational document in the U.S. real estate industry, establishing the financial relationship between brokerages and their agents. This agreement becomes necessary when a licensed real estate professional joins a brokerage firm or when existing arrangements need modification. The document typically includes commission split percentages, payment schedules, expense allocations, and performance expectations. It ensures compliance with state-specific real estate laws and federal regulations while protecting both parties' interests. The agreement may vary by state due to different regulatory requirements and market conditions.
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1. Parties: Identification of the broker and agent/associate broker
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including commission, territory, and transaction types
4. Commission Split Structure: Detailed breakdown of how commissions will be divided between broker and agent
5. Payment Terms: Timing and method of commission payments, including processing and distribution
6. Term and Termination: Duration of agreement and conditions for termination by either party
7. Obligations and Responsibilities: Duties of both broker and agent, including compliance requirements
1. Training and Support: Details of broker-provided training and support services, including mentorship programs
2. Marketing Contribution: Terms for sharing marketing costs and advertising responsibilities
3. Technology Services: Provisions for technology tools and platforms provided by the broker
4. Non-Compete Clause: Restrictions on competition and solicitation during and after the agreement
1. Commission Schedule: Detailed breakdown of commission splits for different transaction types and values
2. Office Policy Manual: Reference to brokerage policies and procedures that form part of the agreement
3. Technology Agreement: Terms of use for brokerage technology platforms and systems
4. Service Area Map: Definition of geographic territory and any territorial restrictions
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