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Commission Split Agreement Between Agents Template for Australia

This document is a legally binding agreement that establishes the terms and conditions for sharing commission earnings between real estate agents in Australia. It outlines the specific commission split arrangements, responsibilities of each party, payment terms, and dispute resolution procedures. The agreement complies with Australian federal and state-specific real estate regulations, ensuring all commission sharing arrangements are transparent, fair, and in accordance with relevant real estate and consumer protection laws. It includes provisions for both residential and commercial property transactions and can be customized to accommodate various commission structures and business arrangements.

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What is a Commission Split Agreement Between Agents?

The Commission Split Agreement Between Agents is essential for real estate professionals in Australia who wish to formalize their commission-sharing arrangements. This document becomes necessary when two or more agents decide to collaborate on property transactions, whether working within the same agency or across different agencies. It provides a clear framework for how commissions will be divided, ensuring transparency and preventing potential disputes. The agreement takes into account Australian real estate regulations, tax implications, and state-specific requirements for commission arrangements. It is particularly valuable for situations involving mentor-mentee relationships, team collaborations, or cross-office partnerships. The document includes detailed provisions for various scenarios such as property sales, leasing transactions, and referral arrangements, while ensuring compliance with Australian consumer protection laws and real estate industry standards.

What sections should be included in a Commission Split Agreement Between Agents?

1. Parties: Identifies and provides full details of the agents entering into the commission split agreement

2. Background: Outlines the context of the agreement and the agents' intention to collaborate and share commissions

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Property Transaction', 'Listing Agent', 'Selling Agent', etc.

4. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions

5. Commission Split Structure: Details the agreed-upon commission split percentages and how they will be calculated

6. Payment Terms: Outlines when and how commission payments will be processed and distributed between parties

7. Roles and Responsibilities: Defines each agent's duties and obligations in relation to property transactions

8. Confidentiality: Addresses the handling of confidential information between agents

9. Termination: Specifies conditions under which the agreement can be terminated and the process for termination

10. Dispute Resolution: Outlines the process for resolving any disputes between the agents

11. Governing Law: Specifies that the agreement is governed by Australian law and the relevant state jurisdiction

What sections are optional to include in a Commission Split Agreement Between Agents?

1. Non-Compete Clause: Optional provisions restricting agents from competing directly with each other in specific circumstances

2. Team Branding: Details about how the agents will present themselves to the public if working as a team

3. Marketing Cost Sharing: Specifies how marketing and advertising costs will be shared between the agents

4. Cross-Office Arrangements: Special provisions for agents working across different offices or agencies

5. Training and Mentoring: Provisions for senior agents mentoring junior agents including any adjusted commission splits

6. Referral Fee Structure: Additional terms for handling referral fees from external sources

7. Performance Metrics: Specific performance targets and any impact on commission splits

8. Insurance Requirements: Additional insurance requirements beyond standard professional indemnity coverage

What schedules should be included in a Commission Split Agreement Between Agents?

1. Schedule A - Commission Split Calculator: Detailed formulas and examples for calculating commission splits in various scenarios

2. Schedule B - Transaction Procedures: Step-by-step procedures for handling different types of property transactions

3. Schedule C - Marketing Materials: Approved templates and guidelines for joint marketing materials

4. Schedule D - Expense Allocation: Detailed breakdown of shared expenses and payment responsibilities

5. Appendix 1 - Contact Details: Complete contact information for all parties and relevant staff members

6. Appendix 2 - Compliance Checklist: Checklist ensuring all regulatory requirements are met in the commission splitting arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Agency Agreement

Cost

Free to use

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