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Broker Fee Agreement

Broker Fee Agreement Template for Switzerland

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Key Requirements PROMPT example:

Broker Fee Agreement

"I need a Broker Fee Agreement for my Swiss real estate agency, establishing exclusive rights to sell a portfolio of luxury properties in Geneva with a 6-month exclusivity period starting March 1, 2025, including a tiered commission structure based on property value."

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Document background
The Broker Fee Agreement is essential for formalizing intermediary relationships in Switzerland, providing a clear framework for professional brokerage services and associated compensation. This document is typically used when engaging brokers for various transactions, including real estate, financial services, or business opportunities. The agreement must comply with Swiss law, particularly the Swiss Code of Obligations' provisions on brokerage contracts (Mäklervertrag/Courtage). It outlines the scope of services, fee structures, success criteria, and payment terms, while addressing specific Swiss regulatory requirements. The document is crucial for protecting both parties' interests and ensuring clarity on commission entitlements, especially in success-fee arrangements common in brokerage relationships.
Suggested Sections

1. Parties: Identification of the broker and the client, including full legal names, addresses, and registration details

2. Background: Context of the brokerage relationship and general purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Success Fee', 'Transaction', etc.

4. Scope of Services: Detailed description of the brokerage services to be provided

5. Broker's Obligations: Key responsibilities and duties of the broker, including reporting requirements and standard of service

6. Client's Obligations: Client's responsibilities, including providing necessary information and cooperation

7. Fees and Payment Terms: Structure of broker's fees, payment timing, and conditions for fee entitlement

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Liability and Indemnification: Limitations of liability and indemnification provisions

11. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

Optional Sections

1. Exclusivity: Terms of exclusive brokerage rights, if applicable

2. Success Fee Protection Period: Post-termination period during which broker remains entitled to fees for identified opportunities

3. Compliance with Regulations: Specific regulatory compliance requirements, particularly relevant for financial or real estate brokers

4. Insurance: Requirements for professional liability insurance or other coverage

5. Data Protection: Specific provisions regarding handling of personal data under Swiss law

6. Non-Circumvention: Provisions preventing direct dealings between client and introduced parties

7. Force Majeure: Provisions for unforeseen circumstances affecting performance

8. Assignment and Subcontracting: Rights and restrictions regarding transfer of rights or use of sub-brokers

Suggested Schedules

1. Fee Schedule: Detailed breakdown of all applicable fees, commission rates, and calculation methods

2. Services Description: Detailed specification of brokerage services and deliverables

3. Reporting Requirements: Format and frequency of progress reports and documentation

4. Authorized Representatives: List of key contacts and authorized representatives for both parties

5. Compliance Checklist: Specific regulatory requirements and compliance procedures

6. Territory Definition: Geographic or market scope of the brokerage arrangement, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Broker
Client
Services
Success Fee
Retainer Fee
Transaction
Opportunity
Confidential Information
Business Day
Effective Date
Term
Territory
Success Event
Introduced Party
Commission
Target
Protection Period
Exclusivity Period
Force Majeure Event
Intellectual Property Rights
Professional Standards
Regulatory Requirements
Service Level
Success Criteria
Material Breach
Completion
Due Diligence
Engagement Letter
Fees
Gross Transaction Value
Introduction
Market
Negotiation
Parties
Relevant Transaction
Representatives
Termination Date
Working Hours
Clauses
Appointment
Scope of Services
Exclusivity
Broker's Obligations
Client's Obligations
Success Fee
Retainer Fee
Payment Terms
Commission Calculation
Success Criteria
Protection Period
Confidentiality
Non-Circumvention
Data Protection
Intellectual Property
Representations and Warranties
Regulatory Compliance
Anti-Money Laundering
Term
Termination
Force Majeure
Liability
Indemnification
Insurance
Assignment
Subcontracting
Notices
Entire Agreement
Amendment
Severability
Waiver
Governing Law
Jurisdiction
Dispute Resolution
Third Party Rights
Counterparts
Relevant Industries

Financial Services

Real Estate

Insurance

Commercial Property

Investment Banking

Commodities Trading

Business Consulting

Merger & Acquisition

Private Equity

Asset Management

International Trade

Luxury Goods

Relevant Teams

Legal

Compliance

Finance

Business Development

Sales

Risk Management

Commercial

Treasury

Corporate Development

Partnerships

Operations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Head of Business Development

Legal Counsel

Compliance Officer

Risk Manager

Business Development Manager

Sales Director

Broker

Investment Advisor

Real Estate Agent

Contract Manager

Commercial Director

Partnership Manager

Treasury Manager

Industries
Swiss Code of Obligations (OR/CO) - Articles 412-418: Primary legislation governing brokerage contracts (Mäklervertrag/Courtage), defining the broker's rights and obligations, conditions for commission payment, and termination provisions
Swiss Code of Obligations (OR/CO) - Articles 394-406: General provisions on mandate agreements which may apply subsidiarily to brokerage contracts
Federal Act on Consumer Credit (KKG): Relevant if the brokerage involves consumer credit intermediation, containing specific requirements for credit brokers
Federal Act on Combating Money Laundering and Terrorist Financing (AMLA): Applicable if the broker acts as a financial intermediary, requiring compliance with due diligence obligations
Cantonal Real Estate Broker Regulations: Local regulations that may apply if the agreement relates to real estate brokerage, varying by canton
Federal Act on Unfair Competition (UWG): Relevant for ensuring fair business practices and transparent fee structures in brokerage agreements
Swiss Civil Code (ZGB) - Article 2: Fundamental principle of good faith which must be observed in all contractual relationships
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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