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Broker Fee Split Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Broker Fee Split Agreement

"I need a Broker Fee Split Agreement for my Riyadh-based real estate agency to collaborate with a Dubai-based broker on luxury residential properties, with a 60-40 commission split structure and specific compliance with both Saudi and UAE regulations, to be effective from March 2025."

Document background
The Broker Fee Split Agreement is essential for real estate professionals operating in Saudi Arabia who wish to formalize their commission-sharing arrangements. This document is typically used when two or more licensed brokers or brokerage firms decide to collaborate on property transactions, ensuring fair compensation distribution while maintaining compliance with Saudi Arabian regulations and Sharia principles. The agreement becomes particularly important in today's dynamic real estate market where cross-agency collaboration is common. It covers crucial aspects such as commission percentages, payment schedules, territorial rights, and professional responsibilities, while incorporating necessary compliance elements required by Saudi real estate authorities and the Saudi Central Bank (SAMA). The document serves as a foundation for transparent and professional relationships between brokers, helping prevent disputes and ensuring clear accountability in shared transactions.
Suggested Sections

1. Parties: Identification of the brokers/brokerage firms entering into the agreement, including their license numbers and contact details

2. Background: Context of the agreement and the parties' intention to collaborate and share commissions

3. Definitions: Key terms used throughout the agreement, including types of transactions, territory, and commission structures

4. Scope of Collaboration: Details of how the brokers will work together, including territory and property types covered

5. Commission Structure: Detailed breakdown of how fees will be split, including percentages and calculation methods

6. Payment Terms: Timeline and method for commission payments, including bank details and currency

7. Obligations and Duties: Responsibilities of each party, including marketing, client communication, and documentation

8. Compliance Requirements: Adherence to Saudi real estate regulations and licensing requirements

9. Term and Termination: Duration of the agreement and conditions for termination

10. Dispute Resolution: Process for resolving disagreements in accordance with Saudi law

11. Governing Law: Explicit statement of Saudi law and Sharia principles as governing law

Optional Sections

1. Exclusivity: Terms of exclusive collaboration, if applicable

2. Marketing Standards: Specific requirements for marketing properties and representing both parties

3. Electronic Communications: Terms for digital communications and transactions if conducting business electronically

4. Non-Compete Clause: Restrictions on competing activities, if agreed upon

5. Force Majeure: Provisions for unforeseen circumstances affecting performance

6. Confidentiality: Terms for handling sensitive information and client data

7. Insurance Requirements: Specific insurance coverage requirements for high-value transactions

8. Training and Support: Terms for sharing expertise and resources between parties

Suggested Schedules

1. Schedule 1: Commission Structure: Detailed breakdown of commission splits for different property types and transaction values

2. Schedule 2: Territory Map: Geographical areas covered by the agreement

3. Schedule 3: Required Licenses: Copies of current broker licenses and certifications

4. Schedule 4: Standard Operating Procedures: Agreed procedures for handling transactions and client communications

5. Appendix A: Contact Details: Complete contact information for all parties and key personnel

6. Appendix B: Marketing Guidelines: Approved marketing practices and brand usage guidelines

7. Appendix C: Documentation Requirements: Templates and required documentation for transactions

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































Clauses

































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Property Development

Property Investment

Property Management

Real Estate Technology

Relevant Teams

Legal

Compliance

Finance

Operations

Sales

Business Development

Real Estate

Property Management

Commission Administration

Client Relations

Risk Management

Relevant Roles

Real Estate Broker

Property Consultant

Real Estate Agent

Brokerage Manager

Sales Director

Business Development Manager

Compliance Officer

Legal Counsel

Finance Manager

Operations Manager

Real Estate Division Head

Commission Administrator

Territory Manager

Client Relations Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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