Real Estate Commission Split Agreement Template

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A real estate commission split agreement is a legally binding contract between real estate agents or brokers that outlines how they will share the commission earned from a successful real estate transaction. This agreement is crucial for establishing clear expectations and preventing misunderstandings between parties. It is essential to create a well-crafted and professional template that reflects the seriousness of the agreement and inspires trust.

Key Components of a Real Estate Commission Split Agreement Template

Free Downloadable Commission Agreement Template
Free Downloadable Commission Agreement Template

1. Parties Involved:

  • Clearly identify the parties involved in the agreement, including their full names, business names, and contact information.
  • Specify whether the agreement is between individual agents or between real estate firms.

  • 2. Scope of the Agreement:

  • Define the specific real estate transaction(s) covered by the agreement, such as the sale of a residential property, commercial property, or rental property.
  • Specify the geographic location where the property is located.

  • 3. Commission Split Structure:

  • Outline the agreed-upon commission split percentage or formula.
  • Consider factors such as the agent’s experience, level of involvement, and the complexity of the transaction when determining the split.
  • Specify whether the split is based on the total commission earned or on a per-transaction basis.

  • 4. Payment Terms:

  • Clearly state the payment terms, including when and how the commission will be paid.
  • Specify whether the commission will be paid upon closing of the transaction or at a later date.
  • Address any potential withholding taxes or fees that may be applicable.

  • 5. Dispute Resolution:

  • Include a dispute resolution clause that outlines how any disagreements or disputes between the parties will be resolved.
  • Consider options such as mediation, arbitration, or litigation.

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  • 6. Termination Clause:

  • Specify the conditions under which the agreement can be terminated by either party.
  • Include a provision for early termination if the transaction falls through or if one party breaches the agreement.

  • 7. Confidentiality:

  • Address the confidentiality of any sensitive information disclosed during the course of the agreement.
  • Specify that both parties will keep confidential any proprietary information or trade secrets related to the transaction.

  • 8. Entire Agreement:

  • Include a clause stating that the agreement constitutes the entire understanding between the parties and supersedes any prior or contemporaneous communications.

  • 9. Governing Law and Jurisdiction:

  • Specify the governing law that will apply to the agreement and the jurisdiction in which any disputes will be resolved.

  • 10. Signatures:

  • Both parties must sign the agreement to make it legally binding.
  • Include a space for each party to sign, date, and print their names.

  • Design Elements for a Professional Real Estate Commission Split Agreement Template

    Clear and Concise Language: Use simple, straightforward language that is easy to understand for all parties involved. Avoid legal jargon or technical terms that may be unfamiliar to non-lawyers.

  • Consistent Formatting: Maintain consistent formatting throughout the template, using headings, bullet points, and numbering to improve readability.
  • Professional Layout: Choose a professional and clean layout that enhances the overall appearance of the document. Consider using a serif font for the main body text and a sans-serif font for headings.
  • White Space: Use ample white space to create a visually appealing and easy-to-read document. Avoid overcrowding the page with too much text.
  • Branding: If applicable, incorporate your branding elements into the template, such as your company logo or color scheme. This can help to establish trust and credibility.

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  • By following these guidelines, you can create a professional and effective real estate commission split agreement template that protects the interests of all parties involved.