Real Estate Agent Commission Sharing Agreement Template for South Africa

The Real Estate Agent Commission Sharing Agreement is essential for formalizing cooperation between real estate professionals in South Africa. This document becomes necessary when two or more estate agents or agencies wish to collaborate on property transactions while ensuring fair compensation for their services. It is particularly relevant in cases of cross-agency cooperation, referrals, or when independent agents work together on property deals. The agreement must comply with the Property Practitioners Act 22 of 2019 and related South African legislation, including requirements for professional registration, trust account management, and ethical conduct. It typically includes detailed provisions for commission calculations, payment procedures, dispute resolution mechanisms, and professional obligations. This type of agreement is crucial for protecting all parties' interests while promoting transparent and efficient collaboration in the real estate sector.

1. Parties: Identification of the real estate agents or agencies entering into the commission sharing agreement, including their registration numbers with the Property Practitioners Regulatory Authority

2. Background: Context of the agreement, explaining the purpose of the commission sharing arrangement and the general framework of cooperation

3. Definitions: Clear definitions of key terms used in the agreement, including 'Commission', 'Qualifying Transaction', 'Property', 'Client', and other relevant terms

4. Commission Structure: Detailed explanation of how commissions will be split between the parties, including percentages or fixed amounts

5. Payment Terms: Procedures and timeframes for commission payments, including invoicing requirements and payment methods

6. Qualifying Transactions: Definition of what transactions qualify for commission sharing and any exceptions

7. Duties and Responsibilities: Specific obligations of each party in relation to property transactions and client management

8. Term and Termination: Duration of the agreement and conditions for termination

9. Dispute Resolution: Procedures for resolving disagreements between the parties

10. Confidentiality: Protection of confidential information and client data

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