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Commission Sharing Agreement (Real Estate)
"Need a Commission Sharing Agreement (Real Estate) under Philippine law for a 60-40 split arrangement between our brokerage firm and independent agents, covering both residential and commercial properties, with specific provisions for luxury properties valued over PHP 50 million."
1. Parties: Identifies the real estate professionals or entities entering into the agreement, including their license numbers and professional details
2. Background: Explains the context of the agreement, including the parties' qualifications and desire to collaborate
3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Property', 'Client', etc.
4. Scope of Agreement: Defines the nature of the collaboration and the properties or transactions covered
5. Commission Structure: Details the agreed-upon commission split percentages and calculation methods
6. Payment Terms: Specifies when and how commission payments will be processed between parties
7. Parties' Obligations: Outlines the responsibilities and duties of each party in the collaboration
8. Term and Termination: Specifies the duration of the agreement and conditions for termination
9. Confidentiality: Addresses the handling of confidential information shared between parties
10. Governing Law: Confirms Philippine law as governing law and relevant jurisdiction
11. Dispute Resolution: Outlines the process for resolving any disputes between parties
12. Execution: Formal closing and signature blocks for all parties
1. Non-Compete Clause: Optional restrictions on working with other brokers or in specific areas - used when parties want to ensure exclusive collaboration
2. Marketing and Advertising: Details how marketing costs and efforts will be shared - relevant when parties plan joint marketing activities
3. Training and Support: Outlines any training or support obligations between parties - useful for mentor-mentee relationships
4. Insurance Requirements: Specifies required insurance coverage - important for high-value properties or complex arrangements
5. Assignment Rights: Details whether and how rights under the agreement can be assigned - relevant for larger brokerages
6. Force Majeure: Addresses unforeseen circumstances affecting performance - particularly relevant post-COVID
1. Schedule A - Property List: Details of specific properties covered by the agreement
2. Schedule B - Commission Structure: Detailed breakdown of commission percentages for different transaction types or value ranges
3. Schedule C - Required Documentation: List of documents required for commission processing and compliance
4. Schedule D - Professional Credentials: Copies of relevant licenses and certifications
5. Appendix 1 - Standard Operating Procedures: Detailed procedures for handling transactions and commission calculations
6. Appendix 2 - Compliance Requirements: Summary of relevant RESA and AMLC requirements affecting the agreement
Authors
Real Estate
Property Development
Property Management
Real Estate Investment
Commercial Real Estate
Residential Real Estate
Real Estate Consulting
Property Services
Real Estate Sales
Business Development
Legal
Compliance
Finance
Operations
Commission Administration
Transaction Processing
Broker Relations
Property Management
Real Estate Broker
Real Estate Agent
Property Manager
Real Estate Sales Director
Broker Associate
Managing Broker
Real Estate Franchise Owner
Real Estate Compliance Officer
Business Development Manager
Real Estate Operations Manager
Transaction Coordinator
Commission Administrator
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