The Broker Agent Commission Split Agreement is essential for establishing clear financial terms between brokers and agents in the U.S. real estate industry. This document is typically used when a new agent joins a brokerage or when existing arrangements need modification. It covers commission percentages, payment schedules, expense allocations, and performance expectations while ensuring compliance with state licensing requirements and federal regulations. The agreement helps prevent disputes by clearly defining how commissions will be divided and when payments are due.
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1. Parties: Identification of the broker and agent, including license numbers
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Commission Structure: Detailed breakdown of commission splits and calculations
5. Term and Termination: Duration of agreement and termination conditions
6. Independent Contractor Status: Clarification of agent's status as independent contractor
7. Obligations and Responsibilities: Duties of both broker and agent
1. Training and Support: Details of broker-provided training, used when included in relationship
2. Marketing Arrangements: Marketing cost sharing, used when applicable
3. Team Structures: Include when agent operates as part of a team
4. Technology Provisions: Include when broker provides specific technology tools
1. Commission Schedule: Detailed breakdown of commission splits for different transaction types
2. Office Policy Manual: Reference to broker's policies and procedures
3. Technology Agreement: Terms of use for provided technology tools
4. Marketing Guidelines: Specific requirements for marketing and branding
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