The Commercial Real Estate Broker Agreement serves as the foundational document for establishing professional relationships in commercial property transactions within the United States. This agreement is essential when property owners or businesses seek professional representation for selling, leasing, or acquiring commercial real estate. It outlines the broker's duties, compensation structure, and specific services to be provided, while ensuring compliance with state and federal regulations. The document typically includes provisions for marketing strategies, property listing terms, commission structures, and agency relationships, adapting to various commercial property types and transaction complexities.
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1. Parties: Identifies the broker and property owner/client, including full legal names and addresses
2. Background: Establishes the context of the agreement and the parties' intent to enter into a broker relationship
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the specific services the broker will provide
5. Term and Termination: Specifies the duration of the agreement and conditions for termination
6. Compensation: Details broker's commission structure and payment terms
7. Agency Relationship: Defines the nature of the agency relationship and related obligations
8. Representations and Warranties: Standard declarations by both parties regarding their authority and capacity
1. Dual Agency Provisions: Required when broker may represent both parties in a transaction
2. Property Management Services: Details additional property management responsibilities when broker will also provide property management services
3. Marketing Budget: Specifies marketing commitments and cost arrangements when specific marketing commitments are part of the agreement
4. Post-Termination Obligations: Details obligations that survive after agreement termination when protecting post-termination rights is important
1. Property Schedule: Detailed description of the property(ies) covered by the agreement
2. Commission Schedule: Detailed breakdown of commission structures for different transaction types
3. Service Level Agreement: Specific performance metrics and service standards
4. Marketing Plan: Detailed marketing strategy and budget allocation
5. Required Disclosures: State-mandated disclosure forms and statements
Relevant legal definitions
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