Ask a lawyer:
Provide a template for a Real Estate Co-Brokerage Agreement

mwakili.com

Real Estate Co-Brokerage Agreement Template

Introduction

A Real Estate Co-Brokerage Agreement is a formal contract between two real estate brokers who agree to work together to represent a buyer or seller in a real estate transaction. This agreement outlines the terms and conditions of their collaboration, including how they will share commissions and responsibilities. Below is a detailed template for a Real Estate Co-Brokerage Agreement relevant to Kenya.

Definitions
Parties
Purpose
Term
Responsibilities of the Parties
Commission and Payment
Confidentiality
Dispute Resolution
Termination
Governing Law
Miscellaneous Provisions
Signatures

Real Estate Co-Brokerage Agreement

1. Definitions

1.1 "Agreement": This Real Estate Co-Brokerage Agreement.

1.2 "Broker A": [Name of Broker A], a licensed real estate broker with offices located at [Address of Broker A].

1.3 "Broker B": [Name of Broker B], a licensed real estate broker with offices located at [Address of Broker B].

1.4 "Client": The buyer or seller of the property, represented by Broker A and Broker B.

1.5 "Property": The real estate property located at [Property Address].

1.6 "Commission": The fee earned by the brokers for services rendered in the transaction.

2. Parties

This Agreement is made and entered into on [Date] by and between:

Broker A: [Name of Broker A], with a principal place of business at [Address of Broker A].

Broker B: [Name of Broker B], with a principal place of business at [Address of Broker B].

3. Purpose

The purpose of this Agreement is to outline the terms and conditions under which Broker A and Broker B will collaborate to represent the Client in the purchase or sale of the Property.

4. Term

This Agreement shall commence on [Start Date] and shall continue until the completion of the transaction or until terminated in accordance with the terms of this Agreement.

5. Responsibilities of the Parties

5.1 Broker A Responsibilities:

Market the Property to potential buyers.
Conduct property showings.
Negotiate offers on behalf of the Client.
Provide regular updates to Broker B.

5.2 Broker B Responsibilities:

Assist in marketing the Property.
Conduct property showings.
Negotiate offers on behalf of the Client.
Provide regular updates to Broker A.

6. Commission and Payment

6.1 Commission: The total commission for the transaction shall be [Percentage]% of the final sale price of the Property.

6.2 Payment: The commission shall be split equally between Broker A and Broker B, with each broker receiving [Percentage]% of the total commission.

6.3 Payment Terms: The commission shall be paid within [Number] days of the closing of the transaction.

7. Confidentiality

Both parties agree to maintain the confidentiality of all information related to the Client and the transaction, except as required by law or as necessary to complete the transaction.

8. Dispute Resolution

8.1 Mediation: Any disputes arising out of or relating to this Agreement shall first be submitted to mediation.

8.2 Arbitration: If mediation fails, the dispute shall be resolved by binding arbitration in accordance with the rules of the [Arbitration Institution].

9. Termination

9.1 Termination by Mutual Agreement: This Agreement may be terminated at any time by mutual written consent of both parties.

9.2 Termination for Cause: Either party may terminate this Agreement for cause if the other party breaches any material term of this Agreement and fails to cure such breach within [Number] days of receiving written notice of the breach.

10. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya.

11. Miscellaneous Provisions

11.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.

11.2 Amendments: Any amendments to this Agreement must be in writing and signed by both parties.

11.3 Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

12. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Real Estate Co-Brokerage Agreement as of the day and year first above written.

Broker A:
[Name of Broker A]
[Signature]
[Date]

Broker B:
[Name of Broker B]
[Signature]
[Date]

Conclusion

This Real Estate Co-Brokerage Agreement template provides a comprehensive framework for brokers in Kenya to collaborate effectively in real estate transactions. It ensures that both parties understand their responsibilities, share commissions fairly, and have mechanisms in place for resolving disputes. By adhering to this template, brokers can foster a professional and cooperative working relationship, ultimately benefiting their clients.

TLDR: This template outlines a Real Estate Co-Brokerage Agreement for brokers in Kenya, detailing responsibilities, commission sharing, confidentiality, dispute resolution, and termination terms to ensure a smooth collaboration in real estate transactions.

Sources: