Is an electronic signature valid?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws adopted in most jurisdictions; ensure intent, consent, attribution, and retention are documented.

Do parties need to notarize the agreement?

Not usually. Most co-brokerage agreements do not require notarization, but check state-specific requirements and title company preferences before finalizing the process.

How do I prove who signed and when?

Use an eSignature platform that captures an audit trail (timestamps, IP, email, and authentication method) and stores a certificate of completion to substantiate attribution and timing.

What if a broker refuses to pay the split?

Document communications and follow the dispute resolution clause in the agreement; consider mediation or arbitration and preserve all executed documents and transaction records for evidence.

Are there tax implications to the split?

Yes. Commission payments should be reported per IRS rules; ensure correct TINs on W-9s to avoid backup withholding (24% if incorrect) and retain records for at least three years (IRC §6501(a)).

Can I use remote online notarization (RON)?

RON availability varies by state. If notarization is required, confirm state RON rules and retention requirements such as identity proofing and audio-video recording.

Electronic Signature
Templates
Legal
Co-Brokerage Agreement

Co-Brokerage Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

CO-BROKERAGE AGREEMENT

This Co-Brokerage Agreement ("Agreement") is made and entered into as of Effective Date: by and between Broker A: with principal address: , and Broker B: with principal address: .

RECITALS

WHEREAS, Broker A and Broker B are duly licensed brokers in their respective jurisdictions and each possesses professional experience and contacts relevant to locating buyers, sellers, tenants, lessors or lessees for commercial and/or residential real property transactions ("Transactions");

WHEREAS, the parties desire to cooperate on specific Transactions by sharing leads, marketing efforts and commissions in accordance with the terms and conditions set forth herein; and

WHEREAS, the parties intend that this Agreement govern the referral, cooperation and division of commissions for Transactions identified under this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement: "Transaction" means a specific sale, lease, exchange or other disposition of real property or an interest therein on which the parties agree to cooperate; "Commission" means the gross broker commission paid in connection with a Transaction before deduction of any fees, taxes or disbursements; "Procuring Party" means the party who first introduces or procures a ready, willing and able buyer, tenant or other counterparty resulting in a Transaction.

2. APPOINTMENT AND SCOPE

2.1 Appointment. Each party appoints the other as a non-exclusive co-broker for the limited purpose of identifying and procuring prospective counterparties for Transactions described in this Agreement. This appointment does not grant authority to bind the other party except as expressly provided in a separate writing.

2.2 Territory and Transactions. The parties may specify applicable territory or Transaction types for each matter. For the transaction described on the attached schedule or identified as:

3. TERM

This Agreement shall commence on the Effective Date and continue for a period of months, unless earlier terminated in accordance with Section 11. Notwithstanding expiration or termination, the parties shall remain entitled to commissions for Transactions first introduced during the term and closed within days after termination provided such Transactions arise from active negotiations conducted during the term.

4. COMMISSION, SPLIT AND PAYMENT

4.1 Commission Entitlement. Commissions due in respect of a Transaction shall be paid to the party holding escrow or receiving the commission from the principal, which party shall promptly remit the agreed share to the other party in accordance with this Agreement.

4.2 Standard Split. Unless otherwise agreed in writing for a specific Transaction, commissions will be divided as follows: Broker A: ; Broker B: .

4.3 Commission Calculation. Commission percentages are calculated on the gross commission payable by the principal prior to deduction of any taxes, escrow fees, legal fees or other charges. If commission is payable in installments, each installment shall be split in the same proportion unless otherwise agreed in writing.

4.4 Payment Terms. Payments to the non-collecting party shall be made within days after receipt by the collecting party. Payment method: . Bank or remittance instructions:

Broker A Remittance Instructions Broker B Remittance Instructions

5. DUTIES AND OBLIGATIONS

Each party shall: (a) act in good faith and use commercially reasonable efforts to identify and present viable leads; (b) timely communicate material information regarding prospective counterparties or offers; (c) maintain required licenses and errors and omissions insurance in amounts customary for the relevant market; and (d) comply with applicable laws, rules and regulations in the performance of this Agreement.

6. CONFIDENTIALITY

6.1 Confidential Information. Each party may disclose confidential information necessary to effect Transactions. Confidential information includes non-public information concerning principals, pricing, terms, strategies and business plans.

6.2 Non-Disclosure. The receiving party shall not use or disclose Confidential Information except for purposes of performing under this Agreement or as required by law, and shall apply at least the same degree of care as it uses with its own confidential information.

7. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it is duly organized or licensed to perform its obligations hereunder, has the full power and authority to enter into this Agreement, and that its execution and performance will not violate any agreement, law or regulatory obligation. Each party further warrants that it has not made any material misrepresentations to any principal in connection with any Transaction.

8. INDEMNIFICATION

Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party and its affiliates, officers, agents and employees from and against any losses, liabilities, claims, damages and expenses (including reasonable attorneys' fees) arising out of: (a) the Indemnifying Party's breach of this Agreement; (b) negligent acts or willful misconduct of the Indemnifying Party in connection with any Transaction; or (c) any inaccurate representation or warranty made by the Indemnifying Party.

9. LIMITATION OF LIABILITY

Except for liability resulting from gross negligence, willful misconduct or a party's breach of Section 6 (Confidentiality) or Section 8 (Indemnification), neither party shall be liable to the other for consequential, incidental, special or punitive damages, and each party's aggregate liability shall not exceed the total commissions actually paid to such party under this Agreement in the twelve (12) month period preceding the event giving rise to the claim.

10. THIRD-PARTY RELATIONS AND AUTHORITY

Each party acknowledges that it acts as an independent contractor and not as an agent, partner or joint venturer of the other party for any purpose except as expressly set forth herein. Neither party shall have authority to bind the other without the other party's prior written consent.

11. TERMINATION

Either party may terminate this Agreement for convenience upon days' prior written notice. Either party may terminate immediately for a material breach by the other party that remains uncured for thirty (30) days after written notice of such breach. Termination shall not relieve either party of obligations accrued prior to termination, including payment of accrued commissions.

12. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below by certified mail, overnight courier or electronic transmission (with confirmation). Notices shall be effective upon receipt.

Notice Address for Broker A Notice Address for Broker B

13. AMENDMENTS; WAIVER

This Agreement may be amended or modified only by a written instrument executed by both parties. No waiver of any provision shall be effective unless in writing signed by the party against whom enforcement is sought, and no waiver shall constitute a waiver of any other right or remedy.

14. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

15. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with any written schedules or addenda executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves, to the extent possible, the original commercial intent.

16. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by electronic means (including PDF or scanned signature) shall be binding and deemed original signatures for all purposes.

17. MISCELLANEOUS

The headings are for convenience only and shall not affect interpretation. Neither party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other party, except to an affiliate or in connection with a sale of substantially all of its assets, provided that any assignee assumes the assigning party's obligations hereunder in writing.

Broker A: Printed Name

By (Signature)

Date

Broker B: Printed Name

By (Signature)

Date

What a Co-Brokerage Agreement Is and When Parties Use It

A Co-Brokerage Agreement is a written contract between two or more real estate brokerages that establishes the terms for cooperating on a specific listing or transaction, including commission splits, client representation, duties, and timelines. It defines which broker is the listing broker, which is the cooperating broker, and how compensation is earned and paid at closing. While many states allow electronic execution, the agreement should be tailored to state licensing rules and specific transaction details to ensure enforceability and to avoid disputes over commission entitlement or disclosure obligations.

Why a Clear Co-Brokerage Agreement Matters

A written co-brokerage agreement reduces ambiguity about commission splits, responsibilities, timing, and client authority. It provides a record that can be referenced if closing, commission payment, or disclosure disputes arise.

Who Typically Signs and Relies on a Co-Brokerage Agreement

Co-brokerage agreements are used by listing brokers, cooperating brokers, broker-associates, and brokerage managers to document cooperation and compensation terms before or during a transaction.

Listing broker or brokerage — prepares the agreement and states the proposed commission split and listing conditions.
Cooperating broker or buyer broker — accepts terms to confirm participation and commission entitlement upon closing.
Designated broker or manager — signs to bind the brokerage and ensures the agreement complies with state licensing rules.

Having the correct parties sign and date the agreement protects commission rights and clarifies obligations for all brokerages and agents involved.

Essential Clauses and Sections to Include

A professional Co-Brokerage Agreement should be concise but cover allocation of compensation, scope of agency, client identification, exclusivity, and termination mechanics to minimize later disputes.

Parties

Identify each brokerage and the designated broker or authorized signatory, including business address and license number where required by state regulation.

Property & Client

Describe the property or client by address, MLS number, or client legal name so the agreement clearly attaches to a specific transaction.

Commission Split

State the percentage or flat amount each broker will receive, how gross commission is calculated, and whether fees or marketing costs are deducted first.

Payment Timing

Specify when compensation is earned and payable (for example, at closing, upon receipt of funds) and address escrow or title company disbursement procedures.

Duties & Scope

Outline each broker’s responsibilities (showings, negotiations, client communications, disclosures) and confirm who represents the buyer or seller.

Dispute Resolution

Include governing law, venue, and a process for resolving commission disputes, such as mediation or arbitration and whether prevailing party fees apply.

Step-by-Step: Completing and Executing a Co-Brokerage Agreement

Follow this sequence to prepare, agree, and execute a co-brokerage agreement so the transaction proceeds without commission disputes.

01

Prepare draft: Populate parties, property, commission split, and effective date.
02

Review terms: Each broker reviews duties, payment timing, and dispute process.
03

Authorize signers: Ensure designated brokers or authorized agents are named and able to sign.
04

Execute & distribute: Obtain signatures and provide copies to closing/title and all brokerages.

How to Configure an Online Co-Brokerage Workflow

Set up the digital workflow to collect signatures and send executed copies to all parties and the title company automatically.

Field	Configuration
Signer roles	Assign listing broker and cooperating broker with signing order if needed
Authentication	Choose email or SMS code signer verification; consider stronger options for high-value deals
Notifications	Enable automatic copies to title/escrow and both brokerages after completion
Storage settings	Save completed PDF with audit trail and define retention period

Where Executed Agreements Should Be Sent and Who Gets Copies

After signing, distribute final copies to stakeholders so title and payment processes can proceed without delay.

Listing brokerage: Retain final executed copy for commission file and accounting
Cooperating brokerage: Keep signed copy for records and agent compensation
Title or escrow: Provide copy to instruct disbursement at closing
Clients: Optional client copy to confirm representation terms

Digital Signing and eSubmission Considerations

Use an eSignature platform that preserves an audit trail, supports required authentication, and can export ISO-compliant signed PDFs.

File formats: PDF, DOCX supported
Integrations: Connect to MLS, title, or CRM
Compliance: ESIGN and UETA support

Ensure the chosen platform can store the signed agreement with an audit trail, provide secure sharing, and meet any industry compliance needs such as a BAA for health-related matters.

Typical Timeframes and Processing Expectations

These are common timelines associated with co-brokerage workflows; some items are transaction-specific and may vary by agreement.

Execution timing:

Execute before active cooperation or as soon as cooperation begins

Delivery to title:

Provide signed copy to title once executed, typically before closing

Commission entitlement:

Usually earned at closing per agreement terms

Record retention:

Keep for the active term and post-closing retention period

Dispute notification:

Notify other party promptly if a commission dispute arises

Common Preparation and Execution Errors to Avoid

Missing or incorrect broker license numbers can delay payment and raise regulatory questions.
Ambiguous language about what constitutes a completed sale or earned commission leads to disputes.
Failing to specify payment timing or escrow instructions creates confusion at closing.
Not distributing the fully executed agreement to title/escrow and both brokerages causes processing delays.

Key Risks and Consequences of an Improper Agreement

Commission dispute: Lost or delayed payment to a cooperating broker

Regulatory penalty: State real estate commission fines for unauthorized practice

Tax withholding: Incorrect TINs on related tax forms can trigger 24% backup withholding

Civil liability: Breach claims or vendor disputes over payment allocation

Record issues: Inadequate retention may hamper audits or legal challenges

Reputational harm: Damaged broker relationships and referral impacts

eSignature Vendor Comparison for Executing Co-Brokerage Agreements

Common capability and pricing comparisons for eSignature vendors used to execute brokerage agreements; pick a platform that supports required authentication and retention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes — 7-day trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Limited
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Co-Brokerage Agreements

Answers to common questions about validity, signatures, recordkeeping, and what to do when commission disputes occur.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws adopted in most jurisdictions; ensure intent, consent, attribution, and retention are documented.
Do parties need to notarize the agreement?
Not usually. Most co-brokerage agreements do not require notarization, but check state-specific requirements and title company preferences before finalizing the process.
How do I prove who signed and when?
Use an eSignature platform that captures an audit trail (timestamps, IP, email, and authentication method) and stores a certificate of completion to substantiate attribution and timing.
What if a broker refuses to pay the split?
Document communications and follow the dispute resolution clause in the agreement; consider mediation or arbitration and preserve all executed documents and transaction records for evidence.
Are there tax implications to the split?
Yes. Commission payments should be reported per IRS rules; ensure correct TINs on W-9s to avoid backup withholding (24% if incorrect) and retain records for at least three years (IRC §6501(a)).
Can I use remote online notarization (RON)?
RON availability varies by state. If notarization is required, confirm state RON rules and retention requirements such as identity proofing and audio-video recording.

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