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Real Estate Co-Brokerage Agreement

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REAL ESTATE CO-BROKERAGE AGREEMENT

Parties

Recitals

WHEREAS, Listing Broker is the broker of record for the property commonly described as (the "Property") and holds listing authority pursuant to a listing agreement with the property owner; and

WHEREAS, Cooperating Broker wishes to cooperate in procuring a buyer, tenant or other counterpart for the Property and the parties desire to set forth the terms under which commissions will be shared and cooperation will occur.

WHEREAS, the parties intend that this Agreement govern their rights and obligations with respect to any sale, lease or other disposition of the Property procured by either party or their agents during the Term.

Scope of Work

The parties shall cooperate in marketing, showing and negotiating the disposition of the Property. Specific duties will include identification and qualification of prospective buyers or tenants, coordination of showings, timely communication of offers and counteroffers, and attendance at closing or consummation of any transaction unless otherwise agreed in writing.

Payment Terms

The total broker's commission payable in connection with a Completed Transaction shall be or % of the gross consideration, as applicable.

% %

Commissions shall be paid to the parties pro rata upon disbursement of sale proceeds at closing or within days following receipt by the party entitled to receive the commission. If payment is not made within that period, a late fee equal to % per month of the unpaid amount shall accrue until paid. The paying party shall be responsible for reasonable collection costs and attorneys' fees incurred by the non-paying party to collect overdue amounts.

Where a commission is split, each party warrants that it will promptly remit the appropriate portion to any cooperating agent or broker who is its subagent or employee, and that no portion of the commission is subject to any lien or encumbrance except as disclosed in writing prior to closing.

Term and Termination

This Agreement shall commence on the Start Date: and shall continue in effect until the End Date: unless earlier terminated as provided herein.

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Termination shall not relieve either party of liability for obligations incurred prior to the effective date of termination, including earned commissions payable with respect to transactions originated during the Term.

Confidentiality

Each party acknowledges that, in the course of performance, it may receive Confidential Information of the other party or of the owner of the Property. "Confidential Information" includes non-public financial data, contractual terms, marketing strategies and client lists. Each party agrees to hold Confidential Information in strict confidence, to use it only for the purposes of performing this Agreement, and not to disclose it to any third party except to employees, agents or contractors who have a need to know and who are bound by confidentiality obligations no less restrictive than those contained herein.

The obligations of confidentiality shall survive termination of this Agreement for a period of years, except for information that becomes publicly available other than by breach of this Agreement or that is required to be disclosed by law, regulation or valid court order.

Representations; Compliance; Indemnification

Each party represents and warrants that it holds the necessary licenses and authority to perform the services described herein and that it will comply with all applicable laws, regulations and brokerage rules. Each party agrees to indemnify, defend and hold harmless the other party from and against any claims, losses or liabilities arising from its negligent acts, willful misconduct or breach of this Agreement, except to the extent caused by the indemnitee's own negligence or willful misconduct.

Notices

All notices required or permitted hereunder shall be in writing and delivered to the addresses set forth below by personal delivery, certified mail (return receipt requested) or nationally recognized courier service. Notices shall be effective upon receipt.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles. Any dispute arising out of or relating to this Agreement shall be resolved by the courts located in such state or as otherwise agreed in writing by the parties.

Entire Agreement; Amendments

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements, whether written or oral. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties are independent contractors and nothing in this Agreement shall create an employment, partnership or joint venture relationship between them. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

Listing Broker (Party A) - Printed Name:

By:

Date:

Cooperating Broker (Party B) - Printed Name:

By:

Date:

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What a Real Estate Co-Brokerage Agreement Is

A Real Estate Co-Brokerage Agreement is a written contract between two brokerages or agents that sets terms for cooperating on a property transaction, including roles, commission splits, scope of services, and timelines. It documents which party will market the property, handle offers, coordinate inspections, and share compensation. The agreement clarifies agency relationships, disclosures, and who will represent buyer or seller interests to reduce disputes. It is often used when the listing broker and selling broker are different firms or when two brokerages join forces on a sale.

Why Use a Co-Brokerage Agreement

A clear co-brokerage agreement reduces ambiguity about commissions, responsibilities, and disclosures, lowering the risk of commission disputes and regulatory issues while documenting consent for electronic exchange and signature.

Why Use a Co-Brokerage Agreement

Who Typically Completes This Agreement

Brokers, managing brokers, and designated brokerage representatives complete the agreement to establish cooperation terms and commission splits.

  • Listing brokers and their managing brokers responsible for marketing and disclosures.
  • Selling brokers or buyer agents arranging showings and buyer representation.
  • Brokerage legal or compliance officers reviewing terms for firm policy compliance.

The agreement is signed by authorized brokerage representatives and retained in transaction files for compliance and recordkeeping.

Authority and Typical Signers

Listing Broker — Agent

The listing broker signs to confirm the listing brokerage's authorization to offer a cooperative commission, to disclose property condition items required by state law, and to agree to how offers will be presented and negotiated.

Selling Broker — Agent

The selling broker signs to confirm client representation, to accept the listed cooperative terms, and to acknowledge obligations for showings, buyer disclosures, and compliance with MLS and state licensing rules.

Essential Clauses to Include

A professional co-brokerage agreement should explicitly define compensation, duties, dispute resolution, and timelines so both brokerages understand expectations and compliance obligations.

Parties

Full legal names and brokerage license numbers for each firm and the individual brokers participating in the transaction.

Commission Split

Exact percentage or dollar split, timing of payment, and conditions that can alter the split (e.g., buyer default).

Scope of Services

Which brokerage handles marketing, showings, negotiations, escrow coordination, and post-closing responsibilities.

Term and Effective Date

Effective date in MM/DD/YYYY format and the period the agreement covers, including automatic termination events.

Representations

Warranties about authority to sign, disclosures made to clients, and absence of conflicting agreements.

Dispute Resolution

Governing law, venue, mediation or arbitration clauses, and attorney fee allocation if disputes arise.

Required Agreement Details at a Glance

Broker Names: Full legal names
License Numbers: State license IDs
Property: Address and legal description
Commission Terms: Split percentage
Effective Date: MM/DD/YYYY
Signatures: Authorized signer + date

Step-by-Step: How to Complete the Agreement

Follow these sequential steps to prepare, review, sign, and distribute a co-brokerage agreement so all parties are aligned before marketing or accepting offers.

  • 01
    Draft the Terms: Populate parties, property, split, and dates.
  • 02
    Review Disclosures: Confirm state-required property and agency disclosures.
  • 03
    Obtain Signatures: Authorized brokers sign and date the document.
  • 04
    Distribute Copies: Share executed copies with offices, escrow, and MLS as required.

How to Set Up a Digital Co-Brokerage Workflow

Configure these workflow settings when preparing the agreement for e-signing to ensure authentication, routing, and record retention.

Field Configuration
Signer Authentication Email plus SMS code or KBA for higher assurance
Signature Order Specify sequential or parallel signing
Conditional Fields Show clauses only when certain checkboxes selected
Expiration & Reminders Set automatic reminders and expiration dates

Where Executed Copies Should Go

After execution, route signed copies to every stakeholder to preserve evidence and enable downstream processing.

  • Listing Office: Keep original for transaction file
  • Selling Office: Provide an executed copy for client records
  • Escrow / Title: Deliver copy to escrow for closing coordination
  • MLS: Post or retain per MLS rules

Technical and Security Considerations for eSigning

Choose a platform and settings that meet authentication, audit trail, and document format needs without compromising privacy or regulatory compliance.

  • Integrations: Salesforce, Microsoft 365, NetSuite, Google Workspace
  • File Formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS code, KBA, two-factor

Preserve audit trails (timestamps, IP, signer identity) and encrypted storage to support enforceability; use a BAA if handling protected health information.

Common Mistakes to Avoid

  • Using informal or ambiguous language about commission splits that leaves room for differing interpretations and disputes.
  • Failing to verify that the signer is an authorized representative, which can render the agreement unenforceable against the brokerage.
  • Neglecting required state disclosures or MLS posting rules, which can trigger fines or listing removal by the MLS.
  • Storing only a scanned image without an audit trail, making it difficult to prove the timing and attribution of signatures.

Potential Consequences of Errors

Commission Dispute: Delayed payment
Invalid Signature: Contract voidable
Regulatory Fine: State license penalty
Backup Withholding: 24% tax rate
MLS Sanctions: Listing removal
Escrow Delay: Closing postponed

eSignature Pricing and Feature Snapshot

Comparison of starting prices and common feature indicators for signNow and other widely used vendors. Confirm current plans directly with each vendor before purchasing.

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 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Practical Tips for Accurate and Efficient Completion

Apply these best practices to reduce rework, speed approvals, and strengthen the enforceability of your co-brokerage agreements.

Use a Standard Template
Start with a vetted template that includes required state disclosures and standard commission language; this reduces attorney review time and inconsistency across transactions.
Verify Signer Authority
Confirm that the individual signing has written brokerage authorization or is a designated broker of record to prevent enforcement or payout problems.
Preserve the Audit Trail
Retain signed PDFs with timestamps, IP addresses, and signer authentication records to support admissibility and defend against disputes.
Coordinate with Escrow
Provide executed copies to escrow and title early to align on commission disbursement timing and closing conditions.

Timing Considerations and Typical Deadlines

Key timing expectations help align marketing, offer handling, and payment. Confirm exact deadlines with local MLS rules and your brokerage policies.

Before Marketing:

Execute agreement before listing is broadly advertised

Offer Presentation:

Agree how and when offers will be shared between brokers

Escrow Instructions:

Provide signed copy to escrow once earnest money is deposited

Commission Payment:

Specify date or event that triggers payment

Record Retention:

Keep executed file through retention period per policy

Typical Transaction Milestones

A sequential view of major stages from agreement execution through closing and commission distribution.

01

Agreement Executed

Both brokerages sign and date the contract

02

Listing Live

Property is posted to MLS or marketing channels

03

Offer & Acceptance

Buyer offer delivered, negotiated, and accepted

04

Closing & Disbursement

Escrow closes and commission is wired per agreement

Real-World Examples of Electronic Agreement Use

These short examples show how brokerages use signed electronic agreements to streamline closing and recordkeeping.

Martin Properties

A midsize brokerage adopted online signing for co-broker agreements to reduce in-person meetings.

  • The founder processed and executed documents online.
  • As a result, the team reported consistent compliance and faster turnaround while maintaining secure, auditable records for each transaction.

Optica Ventures LLC

A boutique investment firm standardized co-broker forms for single-family investments.

  • They used templates and electronic signatures.
  • The change reduced manual edits, improved traceability of approvals, and simplified distribution to escrow and accounting for commission reconciliation.

Frequently Asked Questions About Co-Brokerage Agreements

Answers to common questions about enforceability, signatures, notarization, revocation, and filing to help you avoid common pitfalls.


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