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Broker Co Op Agreement Template for United States

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Key Requirements PROMPT example:

Broker Co Op Agreement

"Need a Broker Co-Op Agreement for my residential real estate brokerage in California to partner with a luxury property broker in Nevada, focusing on high-end properties over $2M and including specific commission splits for cross-border deals starting March 2025."

Document background
The Broker Co-Op Agreement serves as a fundamental instrument in the United States real estate market, facilitating collaborative relationships between licensed brokers and their firms. This document becomes essential when brokers wish to formalize arrangements for sharing listings, marketing efforts, and commission structures while ensuring compliance with federal and state regulations. The agreement typically addresses key aspects such as territory definitions, commission splits, marketing responsibilities, and dispute reºìÐÓÖ±²¥ procedures, while maintaining adherence to RESPA guidelines and state-specific real estate laws.
Suggested Sections

1. Parties: Identification of the cooperating brokers and their legal status

2. Background: Context of the cooperation arrangement and purpose of agreement

3. Definitions: Key terms used throughout the agreement including commission structures, territory, and cooperation parameters

4. Scope of Cooperation: Details of how brokers will work together and the nature of their business relationship

5. Commission Structure: Terms of commission splitting and payment arrangements between cooperating brokers

6. Term and Termination: Duration of agreement and conditions under which either party may terminate the cooperation

7. Confidentiality: Protection of shared information, client data, and business practices

8. Representations and Warranties: Statements confirming brokers' licenses, legal compliance, and authority to enter agreement

9. General Provisions: Standard legal provisions including governing law, notices, and amendment procedures

Optional Sections

1. Marketing Arrangements: Specific terms for joint marketing efforts and brand representation

2. Territory Definitions: Geographic boundaries and limitations of the cooperation arrangement

3. Technology Sharing: Terms for shared technology platforms and data management systems

4. Dispute ReºìÐÓÖ±²¥: Specific procedures for resolving conflicts between cooperating brokers

5. Training Requirements: Specific training or certification requirements for participating agents

Suggested Schedules

1. Schedule A - Commission Schedule: Detailed breakdown of commission splits by property type and value ranges

2. Schedule B - Territory Map: Visual representation and description of covered geographic areas

3. Schedule C - Required Forms: Standard forms and documentation required for cooperative transactions

4. Schedule D - Marketing Guidelines: Specific rules and standards for co-branded marketing materials and activities

5. Schedule E - Compliance Checklist: List of regulatory requirements and compliance procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºìÐÓÖ±²¥ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses


















Industries

RESPA: Real Estate Settlement Procedures Act - Federal law governing real estate transactions and settlement processes, including rules about kickbacks and referral fees between brokers

Antitrust Laws: Sherman Antitrust Act and Clayton Act - Federal laws preventing anti-competitive behavior, price fixing, and market allocation between brokers

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on race, color, religion, sex, national origin, familial status, or disability

ADA Compliance: Americans with Disabilities Act requirements ensuring accessibility and non-discrimination against persons with disabilities in real estate services

TILA: Truth in Lending Act - Federal law requiring disclosure of credit terms and standardizing how costs associated with borrowing are calculated and disclosed

State Licensing Laws: State-specific requirements for maintaining real estate broker licenses and compliance with state regulatory frameworks

Commission Regulations: State-specific rules governing commission splits, payment structures, and disclosure requirements between cooperating brokers

NAR Guidelines: National Association of REALTORSยฎ professional standards and ethical requirements for broker cooperation and transaction handling

MLS Rules: Multiple Listing Service regulations governing property listing sharing and broker cooperation within the system

Agency Law: State-specific laws defining broker-client relationships, fiduciary duties, and disclosure requirements in co-op situations

Data Privacy Laws: Federal and state regulations governing the handling, storage, and sharing of client personal information between cooperating brokers

Local Board Requirements: Specific rules and guidelines set by local real estate boards governing broker cooperation in their jurisdiction

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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