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Commercial Real Estate Broker Agreement for Canada

Commercial Real Estate Broker Agreement Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes the professional relationship between a property owner and a commercial real estate broker or brokerage firm. The document outlines the terms and conditions under which the broker will market, negotiate, and facilitate the sale or lease of commercial property. It includes specific provisions for commission structures, service obligations, property details, and compliance with provincial real estate regulations. The agreement incorporates essential elements of Canadian commercial real estate law and provincial broker regulations, ensuring alignment with local legal requirements and industry standards.

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What is a Commercial Real Estate Broker Agreement?

The Commercial Real Estate Broker Agreement is a crucial document used in Canadian commercial property transactions to formalize the relationship between property owners and professional real estate brokers. This agreement is essential when property owners seek professional representation for selling, leasing, or managing commercial real estate assets. It establishes the scope of the broker's authority, commission structures, and service obligations while ensuring compliance with both federal and provincial regulations. The document is particularly important in Canadian jurisdictions where real estate transactions are heavily regulated and require specific disclosures and terms. It protects both parties by clearly defining expectations, responsibilities, and compensation terms, while incorporating necessary provisions for provincial licensing requirements and professional standards.

What sections should be included in a Commercial Real Estate Broker Agreement?

1. Parties: Identification of the property owner/landlord and the broker/brokerage firm

2. Background: Context of the agreement and brief description of the property and intended transaction

3. Definitions: Key terms used throughout the agreement including 'Property', 'Commission', 'Qualifying Transaction', etc.

4. Appointment and Authority: Formal appointment of broker and scope of authority granted

5. Property Details: Specific description of the property subject to the agreement

6. Broker Services: Detailed description of services to be provided by the broker

7. Term of Agreement: Duration of the agreement, including start and end dates

8. Commission Structure: Detailed breakdown of commission rates, payment terms, and triggering events

9. Owner's Representations and Warranties: Owner's confirmations regarding property ownership and authority to sell/lease

10. Broker's Representations and Warranties: Broker's confirmations regarding licensing, qualifications, and capabilities

11. Confidentiality: Obligations regarding confidential information handling

12. Termination: Conditions and process for ending the agreement

13. Indemnification: Mutual indemnification provisions

14. General Provisions: Standard clauses including governing law, notices, entire agreement, etc.

What sections are optional to include in a Commercial Real Estate Broker Agreement?

1. Post-Termination Obligations: Used when there's a need to specify obligations that survive after agreement termination

2. Co-Brokerage: Include when cooperation with other brokers is anticipated

3. Marketing Budget: Used when specific marketing commitments and budgets need to be agreed upon

4. Property Management: Include when broker will provide property management services

5. International Marketing: Used for properties targeting international buyers/tenants

6. Exclusive Right to Sell/Lease: Include when granting exclusive rights to the broker

7. Success Metrics: Used when specific performance metrics need to be established

8. Force Majeure: Include when specific force majeure provisions are needed beyond standard clauses

What schedules should be included in a Commercial Real Estate Broker Agreement?

1. Schedule A - Property Description: Detailed property specifications, including legal description, floor plans, etc.

2. Schedule B - Commission Schedule: Detailed breakdown of commission structures for different transaction types

3. Schedule C - Marketing Plan: Specific marketing strategies and commitments

4. Schedule D - Service Level Requirements: Detailed description of service standards and response times

5. Schedule E - Excluded Prospects: List of potential buyers/tenants excluded from the agreement

6. Appendix 1 - Required Disclosures: Regulatory required disclosures and forms

7. Appendix 2 - Broker's License Documentation: Copies of relevant licenses and certifications

8. Appendix 3 - Insurance Certificates: Proof of required insurance coverage

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

Real Estate

Commercial Property

Retail

Industrial

Office Space

Hospitality

Healthcare

Manufacturing

Logistics

Mixed-Use Development

Education

Relevant Teams

Legal

Real Estate

Finance

Operations

Asset Management

Property Management

Business Development

Facilities Management

Investment

Risk Management

Compliance

Relevant Roles

Commercial Real Estate Broker

Property Owner

Real Estate Director

Asset Manager

Property Manager

Legal Counsel

Chief Financial Officer

Business Development Manager

Facilities Manager

Investment Manager

Real Estate Operations Manager

Portfolio Manager

Transaction Manager

Leasing Manager

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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