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Broker Agreement Commission Template for England and Wales

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Key Requirements PROMPT example:

Broker Agreement Commission

"I need a Broker Agreement Commission for our real estate agency to engage independent property brokers across London, with a tiered commission structure based on property values and a minimum performance requirement of 5 successful transactions per quarter, starting from March 2025."

Document background
The Broker Agreement Commission serves as the foundational document for establishing commission-based relationships between brokers and principals under English and Welsh law. This agreement is essential when engaging intermediaries to facilitate transactions, particularly in regulated sectors. It outlines commission structures, defines territories, establishes performance metrics, and ensures compliance with UK regulatory requirements. The document is particularly crucial for protecting both parties' interests and establishing clear parameters for commission calculations and payments.
Suggested Sections

1. Parties: Identification and details of the broker and the principal

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of broker appointment and scope of services

5. Commission Structure: Detailed breakdown of commission rates and calculation methods

6. Payment Terms: Timeline and method of commission payments

7. Obligations of the Broker: Duties, responsibilities and performance requirements

8. Obligations of the Principal: Principal's commitments and responsibilities

9. Term and Termination: Duration of agreement and termination provisions

10. Confidentiality: Protection of confidential information

11. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Non-Compete Provisions: Restrictions on competitive activities - use when protecting market position is crucial

2. Insurance Requirements: Specific insurance coverage requirements - use when broker handles high-value transactions

3. Training and Support: Details of training provided to broker - use when specialized product knowledge is required

4. Marketing and Branding: Guidelines for using principal's brand - use when broker represents principal's brand

5. Compliance Requirements: Specific regulatory compliance obligations - use for regulated activities

Suggested Schedules

1. Commission Rate Schedule: Detailed breakdown of commission rates by product/service

2. Territory Schedule: Definition of geographical areas covered

3. Product Schedule: List of products/services covered by agreement

4. Service Level Agreement: Performance metrics and standards

5. Compliance Procedures: Detailed compliance requirements and procedures

6. Report ¶¶ÒõÊÓÆµ: Standard formats for regular reporting

Authors

Alex Denne

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

Relevant legal definitions






























Clauses


































Industries

Financial Services and Markets Act 2000: Primary legislation governing financial services regulation in the UK, establishing regulatory framework and requirements for financial activities

Consumer Rights Act 2015: Legislation protecting consumer rights and establishing fair trading standards in the UK

The Bribery Act 2010: Anti-corruption legislation affecting commission structures and payment arrangements

Money Laundering Regulations 2017: Regulations concerning anti-money laundering requirements and due diligence procedures

FCA Regulatory Framework: Financial Conduct Authority's comprehensive regulatory guidelines including the FCA Handbook, PRIN, and COBS requirements

Law of Property (Miscellaneous Provisions) Act 1989: Legislation governing property-related contracts and formal requirements for their creation

Unfair Contract Terms Act 1977: Legislation controlling the use of unfair terms in contracts and limiting the extent to which liability can be excluded

Commercial Agents Regulations 1993: Regulations governing the relationship between commercial agents and their principals, including commission rights

UK General Data Protection Regulation: Post-Brexit data protection legislation governing the processing and handling of personal data

Data Protection Act 2018: UK's implementation of data protection standards, complementing and supporting the UK GDPR

Competition Act 1998: Legislation preventing anti-competitive practices and abuse of dominant market positions

Enterprise Act 2002: Framework for merger control and market investigations, affecting business relationships and competition

Employment Rights Act 1996: Legislation governing employment rights and status, relevant for determining broker relationship classification

IR35 Legislation: Tax legislation affecting off-payroll working rules and contractor status determination

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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