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Commercial Mortgage Broker Agreement Template for Canada

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Key Requirements PROMPT example:

Commercial Mortgage Broker Agreement

"I need a Commercial Mortgage Broker Agreement for my real estate investment firm based in Ontario, with exclusive broker rights and a tiered commission structure for commercial properties valued over $5 million, to be effective from March 2025."

Document background
The Commercial Mortgage Broker Agreement is essential for businesses seeking commercial mortgage services in Canada's regulated financial sector. This document is used when a business entity engages a licensed mortgage broker to source, negotiate, and arrange commercial mortgage financing. It establishes the framework for the professional relationship, detailing the broker's services, client obligations, compensation structure, and compliance requirements. The agreement must adhere to provincial mortgage broker regulations, federal privacy laws, and financial services legislation. It typically includes provisions for multiple property types and financing structures while incorporating necessary consumer protection and regulatory compliance elements required under Canadian law. The document serves as both a legal protection and operational guideline for all parties involved in commercial mortgage transactions.
Suggested Sections

1. Parties: Identification of the mortgage broker and the client, including full legal names, addresses, and any relevant registration/license numbers

2. Background: Context of the agreement, including the broker's qualifications and the client's intention to engage broker services

3. Definitions: Key terms used throughout the agreement, including technical and financial terminology

4. Scope of Services: Detailed description of mortgage broker services to be provided, including type of financing sought and property types covered

5. Broker's Obligations: Specific duties and responsibilities of the broker, including due diligence, documentation requirements, and compliance obligations

6. Client's Obligations: Client's responsibilities, including providing accurate information, timely documentation, and cooperation requirements

7. Compensation: Fee structure, commission rates, payment terms, and conditions for earning compensation

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated by either party

9. Confidentiality: Obligations regarding confidential information and client data protection

10. Representations and Warranties: Statements of fact and guarantees made by both parties

11. Regulatory Compliance: Acknowledgment and compliance with applicable mortgage broker regulations and laws

12. Limitation of Liability: Extent and limitations of broker's liability for services provided

13. Dispute Resolution: Process for handling disagreements and conflicts between parties

14. General Provisions: Standard legal clauses including notices, amendments, assignment, and governing law

Optional Sections

1. Exclusive Agency: Terms establishing the broker as the exclusive agent for specified transactions, used when exclusivity is agreed upon

2. Multiple Brokers Coordination: Provisions for coordination with other brokers, used when multiple brokers might be involved

3. International Transactions: Additional provisions for cross-border transactions, used when dealing with international financing

4. Digital Communications: Specific provisions for electronic communications and virtual dealings, used when primarily operating digitally

5. Sub-broker Relationships: Terms governing the involvement of sub-brokers, used when the primary broker may delegate certain duties

6. Success Fee Structure: Additional compensation terms for successful placement of mortgage, used in performance-based arrangements

7. Property Management Services: Additional services related to property management, used when broker offers extended services

Suggested Schedules

1. Schedule A - Fee Schedule: Detailed breakdown of all fees, commissions, and payment structures

2. Schedule B - Service Level Requirements: Specific performance metrics and service standards

3. Schedule C - Required Documentation: List of required documents and information from client

4. Schedule D - Compliance Checklist: Regulatory compliance requirements and verification checklist

5. Schedule E - Property Types: Detailed list of commercial property types covered under the agreement

6. Appendix 1 - Broker Credentials: Copies of broker's licenses, certifications, and professional credentials

7. Appendix 2 - Privacy Policy: Detailed privacy and data protection policies

8. Appendix 3 - Standard Forms: Collection of standard forms used in the mortgage brokerage process

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Financial Services

Banking

Property Development

Commercial Construction

Retail

Industrial

Hospitality

Healthcare

Office Space Management

Warehouse and Logistics

Relevant Teams

Legal

Finance

Real Estate

Compliance

Risk Management

Treasury

Business Development

Investment

Property Management

Operations

Relevant Roles

Commercial Mortgage Broker

Real Estate Finance Manager

Chief Financial Officer

Commercial Property Manager

Real Estate Development Director

Finance Director

Treasury Manager

Real Estate Investment Manager

Commercial Property Investor

Risk Management Officer

Compliance Officer

Legal Counsel

Business Development Manager

Commercial Real Estate Agent

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

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