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Co Broker Agreement for Canada

Co Broker Agreement Template for Canada

A legally binding agreement governed by Canadian federal and provincial real estate laws that establishes a formal relationship between two or more licensed real estate brokerages. The agreement defines the terms of cooperation, commission sharing arrangements, and mutual obligations in handling real estate transactions. It ensures compliance with provincial real estate regulations, CREA guidelines, and relevant privacy laws while protecting the interests of both brokerages and their clients. The document includes specific provisions for transaction handling, dispute resolution, and professional standards in the Canadian real estate market.

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What is a Co Broker Agreement?

The Co-Broker Agreement is essential for real estate brokerages in Canada seeking to establish formal collaboration arrangements with other licensed brokerages. This document is particularly relevant when brokerages wish to expand their market reach, share listings, or work together on transactions while maintaining compliance with provincial real estate regulations and federal laws. The agreement typically includes detailed provisions for commission sharing, professional obligations, confidentiality requirements, and dispute resolution mechanisms. It's designed to meet the specific requirements of Canadian real estate law, including provincial Real Estate and Business Brokers Acts, PIPEDA privacy requirements, and CREA professional standards. The document serves as a fundamental tool for structuring inter-brokerage relationships and ensuring clear communication and fair business practices between cooperating firms.

What sections should be included in a Co Broker Agreement?

1. Parties: Identification of the cooperating brokerages, including full legal names, licensing details, and business addresses

2. Background: Context of the agreement, stating the parties' intentions to cooperate in real estate transactions and their authority to enter into the agreement

3. Definitions: Key terms used throughout the agreement, including 'Listed Property', 'Commission', 'Cooperating Brokerage', 'Listing Brokerage', etc.

4. Scope of Agreement: Details of the cooperation arrangement, including types of properties and geographical areas covered

5. Commission Structure: Framework for commission sharing, including percentages, calculation methods, and payment terms

6. Responsibilities and Obligations: Detailed outline of each party's duties, professional standards, and service expectations

7. Confidentiality: Terms regarding handling of confidential information and client data

8. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

9. Dispute Resolution: Process for handling disagreements between the parties

10. Compliance: Commitment to comply with relevant real estate laws, regulations, and professional standards

11. General Provisions: Standard clauses including governing law, entire agreement, amendments, and notices

What sections are optional to include in a Co Broker Agreement?

1. Marketing and Advertising: Terms for joint marketing efforts and brand representation, used when parties plan collaborative promotional activities

2. Technology Integration: Protocols for sharing listing data and using common platforms, included when specific technology systems are involved

3. Training Requirements: Specific training or certification requirements for agents, included when specialized property types are involved

4. International Transactions: Special provisions for international property dealings, used when cross-border transactions are anticipated

5. Referral Program: Structure for handling referrals between brokerages, included when establishing a formal referral system

6. Special Property Types: Specific terms for handling unique property categories, used when dealing with commercial, luxury, or specialized properties

7. Force Majeure: Provisions for unforeseen circumstances affecting performance, particularly relevant in uncertain market conditions

What schedules should be included in a Co Broker Agreement?

1. Schedule A - Commission Schedule: Detailed breakdown of commission splits for different property types and transaction values

2. Schedule B - Territory Map: Geographical areas covered by the co-broking arrangement

3. Schedule C - Service Standards: Specific performance metrics and service level expectations

4. Schedule D - Contact Information: Key personnel and escalation contacts for both brokerages

5. Appendix 1 - Required Documentation: List of standard forms and documents to be used in co-broking transactions

6. Appendix 2 - Compliance Checklist: Regulatory and professional standards compliance requirements

7. Appendix 3 - Technology Protocols: Technical specifications for data sharing and system integration

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions


































Clauses



























Relevant Industries

Residential Real Estate

Commercial Real Estate

Industrial Real Estate

Luxury Real Estate

Real Estate Investment

Property Development

Real Estate Management

Agricultural Real Estate

Relevant Teams

Legal

Compliance

Operations

Business Development

Sales Administration

Contract Management

Risk Management

Executive Leadership

Transaction Processing

Relevant Roles

Broker of Record

Managing Broker

Real Estate Broker

Compliance Officer

Legal Counsel

Real Estate Agency Owner

Operations Director

Business Development Manager

Real Estate Sales Manager

Transaction Coordinator

Contracts Administrator

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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