The Commercial Real Estate Broker Fee Agreement serves as the foundational document for professional relationships in commercial real estate transactions within the United States. This agreement is essential when engaging a broker for services such as property listing, leasing, or sales of commercial properties. It protects both parties' interests by clearly defining the scope of services, compensation terms, and obligations while ensuring compliance with federal regulations and state-specific real estate laws. The document is particularly crucial for establishing clear expectations regarding commission structures and payment triggers in complex commercial real estate transactions.
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1. Parties: Identification of the broker and client, including legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including commission events, property definitions, and relevant terminology
4. Scope of Services: Detailed description of broker's services and obligations
5. Commission Structure: Fee calculations, payment terms, and triggering events
6. Term and Termination: Duration of agreement and termination conditions
7. Representations and Warranties: Standard declarations by both parties regarding authority, capacity, and compliance
8. General Provisions: Standard contract clauses including governing law, notices, and amendments
1. Protection Period: Post-termination period where broker maintains rights to commission for previously introduced prospects
2. Exclusive Rights: Provisions granting exclusive representation rights to broker and related obligations of the client
3. Sub-Agents: Terms governing broker's right to engage sub-agents and allocation of responsibilities
4. Marketing Requirements: Specific marketing obligations and commitments by the broker
1. Schedule A - Property Description: Detailed description of property or properties covered under the agreement
2. Schedule B - Fee Schedule: Detailed breakdown of commission structures, calculations, and payment terms
3. Schedule C - Broker Services: Comprehensive list of services to be provided by the broker
4. Appendix 1 - Required State Disclosures: State-mandated disclosure forms and statements required by applicable law
Relevant legal definitions
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