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Provide a template for a Real Estate Co-Brokerage Agreement

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Introduction

A Real Estate Co-Brokerage Agreement is a legal document that outlines the terms and conditions under which two or more real estate brokers agree to collaborate in the sale, lease, or purchase of a property. This agreement is essential to ensure that all parties understand their roles, responsibilities, and the division of commissions. In Kenya, such agreements must comply with the relevant laws and regulations, including the Law of Contract Act, the Estate Agents Act, and other pertinent legal provisions.

Parties Involved
Recitals
Definitions
Scope of Agreement
Duties and Responsibilities
Commission and Payment Terms
Confidentiality
Dispute Resolution
Termination
Miscellaneous Provisions
Signatures

1. Parties Involved

This section identifies the parties entering into the agreement.

Party A: [Name of Broker A], a licensed real estate broker with registration number [Registration Number], whose principal place of business is located at [Address].
Party B: [Name of Broker B], a licensed real estate broker with registration number [Registration Number], whose principal place of business is located at [Address].

2. Recitals

This section provides the background and purpose of the agreement.

Whereas, Party A and Party B are licensed real estate brokers in Kenya.
Whereas, both parties wish to collaborate in the sale, lease, or purchase of the property located at [Property Address].
Whereas, the parties agree to share the commission earned from the transaction as per the terms outlined in this agreement.

3. Definitions

This section defines key terms used in the agreement.

"Agreement" means this Real Estate Co-Brokerage Agreement.
"Property" means the real estate located at [Property Address].
"Commission" means the fee earned from the sale, lease, or purchase of the Property.
"Client" means the buyer, seller, lessor, or lessee involved in the transaction.

4. Scope of Agreement

This section outlines the scope and limitations of the agreement.

Objective: The objective of this agreement is to outline the terms under which Party A and Party B will collaborate in the transaction involving the Property.
Exclusivity: This agreement is non-exclusive, and both parties are free to engage in other brokerage activities.
Duration: This agreement shall commence on [Start Date] and shall continue until [End Date] or until terminated as per the terms of this agreement.

5. Duties and Responsibilities

This section details the roles and responsibilities of each party.

Party A's Responsibilities:
- Market the Property to potential clients.
- Conduct property viewings and inspections.
- Negotiate terms with potential clients.
- Provide regular updates to Party B.
Party B's Responsibilities:
- Assist in marketing the Property.
- Provide additional client leads.
- Participate in property viewings and inspections.
- Assist in negotiations and provide regular updates to Party A.

6. Commission and Payment Terms

This section outlines how the commission will be divided and paid.

Commission Rate: The total commission for the transaction shall be [Percentage]% of the sale/lease price.
Division of Commission: The commission shall be divided as follows:
- Party A: [Percentage]%
- Party B: [Percentage]%
Payment Terms: The commission shall be paid within [Number] days of the transaction's completion.

7. Confidentiality

This section ensures that both parties maintain the confidentiality of sensitive information.

Confidential Information: Both parties agree to keep all client information, transaction details, and other sensitive information confidential.
Non-Disclosure: Neither party shall disclose any confidential information to third parties without the prior written consent of the other party.

8. Dispute Resolution

This section outlines the process for resolving disputes.

Negotiation: In the event of a dispute, the parties shall first attempt to resolve the matter through good-faith negotiations.
Mediation: If negotiations fail, the parties agree to submit the dispute to mediation.
Arbitration: If mediation is unsuccessful, the dispute shall be resolved through binding arbitration in accordance with the Arbitration Act of Kenya.

9. Termination

This section outlines the conditions under which the agreement may be terminated.

Mutual Agreement: The agreement may be terminated at any time by mutual written consent of both parties.
Breach: Either party may terminate the agreement if the other party breaches any material term of the agreement and fails to remedy the breach within [Number] days of receiving written notice.
Expiration: The agreement shall automatically terminate upon the completion of the transaction or the end date specified in the agreement.

10. Miscellaneous Provisions

This section includes additional terms and conditions.

Governing Law: This agreement shall be governed by and construed in accordance with the laws of Kenya.
Entire Agreement: This agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.
Amendments: Any amendments to this agreement must be in writing and signed by both parties.
Severability: If any provision of this agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

11. Signatures

This section includes the signatures of the parties involved.

Party A:
- Name: [Name]
- Signature: _______________________
- Date: _______________________
Party B:
- Name: [Name]
- Signature: _______________________
- Date: _______________________

Conclusion

A well-drafted Real Estate Co-Brokerage Agreement is essential for ensuring a smooth and transparent collaboration between brokers. By clearly outlining the roles, responsibilities, and commission-sharing arrangements, this agreement helps prevent misunderstandings and disputes. It is crucial to ensure that the agreement complies with Kenyan laws and regulations, including the Law of Contract Act and the Estate Agents Act.