The Agreement Between Brokers For Residential Leases is essential when multiple licensed real estate professionals collaborate on residential rental transactions. This document is commonly used in the United States when brokers from different firms work together to facilitate residential leases, requiring clear guidelines on commission sharing, responsibilities, and cooperation terms. It addresses key aspects such as referral procedures, marketing coordination, and dispute resolution while ensuring compliance with state and federal real estate regulations. The agreement helps prevent misunderstandings and provides a framework for professional collaboration in the residential leasing market.
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1. Parties: Identification of the cooperating brokers, including license numbers and contact details
2. Background: Context of the agreement and the purpose of cooperation between brokers
3. Definitions: Key terms used throughout the agreement including 'Commission', 'Lease', 'Tenant', etc.
4. Scope of Cooperation: Details of how brokers will work together on residential lease transactions
5. Commission Split: Terms of commission sharing, including percentages and payment timing
6. Duties and Responsibilities: Specific obligations of each broker in the cooperation
7. Term and Termination: Duration of agreement and conditions for termination
8. Governing Law: Applicable state law and jurisdiction
1. Referral Process: Specific procedures for referrals between brokers when referrals are part of the cooperation agreement
2. Marketing Cooperation: Terms for joint marketing efforts when brokers plan to conduct joint marketing activities
3. Dispute Resolution: Mediation and arbitration procedures when parties want to specify alternative dispute resolution methods
4. Non-Compete Clause: Restrictions on competing activities when protecting specific market territories or client relationships
1. Commission Schedule: Detailed breakdown of commission splits for different types of transactions
2. Territory Map: Geographic areas covered by the agreement, if applicable
3. Standard Forms: Templates for referral documentation and commission calculations
4. Broker License Information: Copies of current broker licenses and certifications
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