The Commercial Broker Agreement serves as the foundational document governing the professional relationship between brokers and their clients in commercial transactions. This agreement is essential when engaging a broker for services such as real estate transactions, securities trading, or insurance placement in the United States. It addresses crucial elements including commission structures, exclusivity rights, territorial limitations, and compliance with federal and state regulations. The agreement provides legal protection for both parties while ensuring transparency in the business relationship.
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1. Parties: Identification and details of the broker and client
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of broker's services and responsibilities
5. Term and Termination: Duration of agreement and termination provisions
6. Compensation: Commission structure and payment terms
7. Broker's Obligations: Legal and professional duties of the broker
8. Client's Obligations: Responsibilities and commitments of the client
9. General Terms: Standard contractual provisions including governing law
1. Exclusivity: Terms of exclusive representation - use when broker requires exclusive rights
2. Non-Compete: Restrictions on competitive activities - use when protecting business interests is crucial
3. International Provisions: Terms for cross-border transactions - use when dealing with international transactions
4. Sub-Broker Provisions: Terms for involving other brokers - use when sub-brokers may be needed
1. Schedule of Fees: Detailed breakdown of commission structure and fees
2. Territory Schedule: Definition of geographical area covered
3. Service Level Agreement: Specific performance metrics and standards
4. Required Disclosures: State-mandated broker disclosures
5. Insurance Requirements: Details of required insurance coverage
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
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