The Real Estate Broker Agreement serves as the foundational document governing the professional relationship between real estate brokers and their clients in Canadian real estate transactions. This document is essential when engaging a broker's services for buying or selling property and must be executed before the broker can formally represent the client's interests. The agreement encompasses crucial elements such as the scope of services, commission structures, and duration of representation, while ensuring compliance with provincial real estate regulations and federal privacy laws. It includes specific provisions required by provincial real estate acts, outlines the broker's fiduciary duties, and establishes clear expectations for both parties. The document's format and content vary slightly by province to accommodate different regulatory requirements, but all versions maintain core elements required for legal enforceability and regulatory compliance.
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1. Parties: Identification of the broker/brokerage and the client (seller or buyer)
2. Background: Context of the agreement and basic information about the property or desired property
3. Definitions: Key terms used throughout the agreement including 'Property', 'Listing Period', 'Commission', 'Exclusive Rights', etc.
4. Appointment and Authority: Formal appointment of the broker and scope of authority granted
5. Term of Agreement: Duration of the agreement, including start and end dates
6. Broker's Obligations: Detailed listing of services and duties the broker will provide
7. Client's Obligations: Client responsibilities, including providing accurate information and cooperation
8. Commission Structure: Detailed breakdown of fees, when they become payable, and payment terms
9. Property Information: Details of the subject property or property requirements (for buyer agreements)
10. Marketing Authorization: Permission to advertise and market the property, including specific authorized methods
11. Termination: Conditions and process for ending the agreement
12. Disclosure Obligations: Required disclosures under relevant real estate laws
13. Dispute Resolution: Process for handling disagreements between parties
14. General Provisions: Standard clauses including governing law, entire agreement, amendments, etc.
1. Holdover Period: Used in listing agreements to specify a period after termination during which commission may still be payable
2. Multiple Listing Service Authorization: Include when the property will be listed on MLS systems
3. Team Designation: Include when multiple agents will be handling the account
4. International Marketing: Include for high-value properties requiring international exposure
5. Property Management Services: Include when the broker will provide additional property management services
6. Dual Agency Consent: Include in jurisdictions where dual agency is permitted and may occur
7. Virtual Services: Include when providing virtual showings or digital services
8. Privacy Policy: Optional detailed section about handling of personal information beyond basic PIPEDA requirements
1. Schedule A - Property Details: Detailed description of the property or property requirements
2. Schedule B - Commission Schedule: Detailed breakdown of commission structures and payment scenarios
3. Schedule C - Marketing Plan: Specific marketing activities and timeline
4. Schedule D - Service Package: Detailed list of services included in the agreement
5. Appendix 1 - Required Disclosures: Standard form disclosures required by provincial law
6. Appendix 2 - Agency Disclosure: Explanation of agency relationships and obligations
7. Appendix 3 - Privacy Policy: Detailed privacy policy and information handling procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Property Management
Residential Real Estate
Commercial Real Estate
Industrial Real Estate
Retail Real Estate
Luxury Real Estate
Real Estate Investment
Relevant Teams
Legal
Real Estate Operations
Compliance
Sales
Business Development
Property Management
Transaction Processing
Document Administration
Client Relations
Risk Management
Relevant Roles
Real Estate Broker
Real Estate Agent
Property Manager
Real Estate Sales Representative
Broker of Record
Real Estate Managing Broker
Real Estate Compliance Officer
Real Estate Legal Counsel
Real Estate Transaction Coordinator
Business Development Manager
Real Estate Operations Manager
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