Co-Brokerage Agreement Real Estate

Complex commercial real estate transactions may require an experienced real estate agent who takes time and effort to bring about a sale. If a cooperating broker is involved, the rules of co-brokerage should be clear from the outset. While this may be the obvious, take the time to reduce yourself to writing down everything that is expected to be part of a co-brokerage agreement if you agree to share a commission with another agent. In the event of a dispute, a court cannot read implied terms in it. However, following subsequent written communications, Monopoly Realty and World Business Brokers signed a co-brokerage agreement for the sale of the property. The brief written agreement stipulated that World Business Brokers would receive half of the commissions that Monopoly Realty earns from the sale of the property in question. In return for the agreement, World Business Brokers Monopoly Realty provided information that the property was for sale. The court found that the agreement had been concluded in writing and that it appeared to reflect the entire agreement between the two officers. It is also stated that “if the parties voluntarily set out their commitment in writing, in the sense that they communicate a legal obligation without uncertainty as to the object or scope of their mission, they consider consistently that the entire commitment and the extent and manner in which they commit themselves are recorded in the written pleading. No other language is allowed to show what they thought or envisioned… However, the court found that the contract between Monopoly Realty and World Business Brokers, although a “bad deal” for Monopoly Realty, was binding and enforceable for all parties. Monopoly Realty has fulfilled all the typical functions of a sales representative without the additional support of World Business Brokers.

In addition, at some point, after the agreement between the two agents, but before the actual sale of the property, Monopoly Realty attempted to cancel the agreement by stating that World Business Brokers did not do any work to obtain a sale. Monopoly Realty eventually sold the property and received a real estate commission. However, the situation is different for co-brokerage claims – and cooperating agents may be the norm rather than the exception for business transactions. In addition, as many experienced commercial agents have already seen, the broker who has cooperated or expelled may not only have much less knowledge and skills in the field of commercial real estate agents, but also contribute significantly less to the success of the operation. If this happens, the more experienced broker – with some legitimacy – may feel that it is not fair to spread the commissions 50-50. Monopoly Realty and World Business Brokers were experienced real estate agents. At one point, World Business Brokers drew attention to the commercial real estate that was for sale and contacted Monopoly Realty with this information….