The Broker Partnership Agreement is crucial when two or more brokerage entities decide to combine their resources, expertise, and market presence while maintaining separate legal identities. This document is particularly important in the United States market where regulatory compliance is stringent and varies by state and industry sector. The agreement typically includes provisions for revenue sharing, compliance requirements, territorial rights, and operational procedures, while ensuring adherence to federal and state regulations. It's commonly used when brokers want to expand their market reach, share resources, or create strategic alliances without full merger or acquisition.
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1. Parties: Identifies all parties to the agreement, including legal names and addresses
2. Background/Recitals: Explains the context and purpose of the partnership agreement
3. Definitions: Defines key terms used throughout the agreement
4. Partnership Structure: Outlines the nature of the partnership and ownership structure
5. Scope of Services: Details the brokerage services covered under the partnership
6. Revenue Sharing: Specifies how commissions and revenues will be split between partners
7. Compliance Requirements: Outlines regulatory compliance obligations for all parties
8. Term and Termination: Defines the duration of the agreement and termination conditions
1. Non-Compete Provisions: Restrictions on competitive activities - use when partners want to protect their business interests
2. Technology Integration: Details about shared systems and platforms - use when partners share technological infrastructure
3. Marketing Arrangements: Joint marketing and branding provisions - use when partners engage in co-marketing activities
4. International Operations: Provisions for cross-border activities - use when partnership operates internationally
1. Commission Schedule: Detailed breakdown of commission structures and calculations
2. Service Territory Map: Geographic areas covered by the partnership
3. Compliance Procedures: Detailed regulatory compliance protocols
4. Required Licenses: List of mandatory licenses and certifications
5. Partner Contact Information: Key contacts and escalation procedures
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