Brokerage commission clause: Copy, customize, and use instantly
Introduction
A brokerage commission clause defines the terms under which a broker is entitled to a commission for services rendered in facilitating a transaction, such as the sale or purchase of goods, real estate, or financial assets. This clause outlines the percentage or fixed amount of commission due to the broker, the conditions under which it is earned, and any specific details regarding timing, payment, and adjustments. Clear commission terms are crucial to avoid disputes and ensure both parties understand the financial obligations involved.
Below are templates for brokerage commission clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard brokerage commission clause
This version sets a standard percentage commission.
The Broker shall be entitled to a commission of [percentage]% of the total value of the transaction upon the successful completion of the sale or purchase of the property/assets. The commission shall be paid within [number] days after the closing of the transaction.
Brokerage commission clause with flat fee
This version sets a fixed fee for the brokerage commission.
The Broker shall receive a fixed commission of [specified amount] for services rendered in facilitating the transaction. The commission shall be payable within [number] days of the completion of the sale or purchase, regardless of the transaction value.
Brokerage commission clause with tiered commission structure
This version includes a tiered commission structure based on the value of the transaction.
The Broker shall be entitled to a commission based on the following tiered structure:[Percentage]% of the first [specified amount] of the transaction value.[Higher percentage]% for any value exceeding [specified amount]. The commission shall be paid within [number] days after the completion of the transaction.
Brokerage commission clause with exclusive rights
This version grants the broker exclusive rights to earn the commission.
The Broker is granted exclusive rights to represent the Buyer/Seller in this transaction. The Broker shall be entitled to a commission of [percentage]% of the total transaction value, regardless of whether the transaction is completed with a third party, for the duration of the [time period] from the execution of this Agreement.
Brokerage commission clause with commission due at signing
This version specifies that the commission is due when the agreement is signed, regardless of the completion of the transaction.
The Broker shall be entitled to a commission of [percentage]% of the transaction value upon the execution of this Agreement. This commission is due upon signing, and the balance will be settled once the transaction is completed.
Brokerage commission clause with commission based on net proceeds
This version ties the commission to the net proceeds of the sale.
The Broker shall receive a commission of [percentage]% of the net proceeds of the sale, which is defined as the total sale price minus any closing costs, taxes, and expenses. The commission will be paid within [number] days after the transaction is completed and the net proceeds are determined.
Brokerage commission clause with commission for both parties
This version includes commission for both parties involved in the transaction.
The Broker shall receive a commission of [percentage]% from both the Buyer and Seller in the event of a successful transaction. The commission for each party will be due within [number] days of the closing of the transaction.
Brokerage commission clause with early termination payment
This version includes a commission due upon early termination of the agreement.
In the event that this Agreement is terminated prior to the completion of the transaction, the Broker shall be entitled to a commission of [percentage]% of the transaction value, provided that the termination occurs after the Broker has introduced the Buyer/Seller to the property or assets. The commission is due upon termination and shall be paid within [number] days.
Brokerage commission clause with conditional commission
This version includes conditions that must be met before the commission is earned.
The Broker shall be entitled to a commission of [percentage]% of the transaction value only if the Buyer/Seller successfully closes the transaction within [specified period] after the introduction. If the transaction fails to close within this period, no commission will be due.
Brokerage commission clause with commission on renewal
This version includes commission for renewals or repeat business.
The Broker shall be entitled to a commission of [percentage]% on the initial transaction value and [percentage]% on any renewals or repeat transactions occurring within [time period] of the original transaction. The commission for renewals shall be due within [number] days of the completion of the renewal transaction.
Brokerage commission clause with commission on financing or referrals
This version includes a commission for financing or referral-related transactions.
The Broker shall receive a commission of [percentage]% on the total value of any financing or referrals resulting from this Agreement. The commission will be paid within [number] days after the financing is secured or the referral results in a completed transaction.
Brokerage commission clause with commission cap
This version includes a cap on the maximum commission payable.
The Broker shall receive a commission of [percentage]% on the total value of the transaction, with a maximum commission of [specified amount]. If the total commission exceeds this cap, the Broker shall only receive the capped amount, regardless of the transaction value.
Brokerage commission clause with commission on multiple transactions
This version applies a commission on multiple transactions.
The Broker shall receive a commission of [percentage]% for each transaction related to the same agreement, including any follow-up sales or purchases that occur within [time period] of the initial transaction. The commission shall be payable within [number] days of each transaction completion.
Brokerage commission clause with referral commission
This version includes a referral commission for bringing in clients.
If the Broker refers a potential Buyer/Seller to the Parties, and that referral results in a successful transaction, the Broker will be entitled to a referral commission of [percentage]% of the total transaction value. The referral commission will be payable within [number] days of the transaction closing.
Brokerage commission clause with exclusivity fee
This version includes an exclusivity fee along with the commission.
In consideration for granting the Broker exclusive rights to represent the Buyer/Seller, the Broker will receive a non-refundable exclusivity fee of [specified amount]. Additionally, the Broker will receive a commission of [percentage]% of the total transaction value upon completion.
Brokerage commission clause with commission for partial deals
This version applies commission for partial deals or deposits.
The Broker shall receive a commission of [percentage]% of the total value of any partial deal or deposit made by the Buyer. If the full transaction is completed, the Broker will receive the remaining commission on the total transaction value.
Brokerage commission clause with graduated commission scale
This version includes a graduated commission scale for higher-value deals.
The Broker’s commission will be based on the following graduated scale:[Percentage]% for the first [specified amount] of the transaction.[Higher percentage]% for the next [specified amount] of the transaction.[Even higher percentage]% for any amount exceeding [specified amount]. The commission will be due within [number] days of transaction completion.
Brokerage commission clause with commission on cost savings
This version applies commission based on cost savings achieved.
The Broker shall receive a commission of [percentage]% on the cost savings achieved in the transaction, specifically related to the negotiated price reduction or other cost-cutting measures. The commission will be payable within [number] days of the transaction's completion.
Brokerage commission clause with commission paid in installments
This version includes installment payments for the commission.
The Broker will receive the total commission of [percentage]% of the transaction value, paid in installments as follows:[Percentage]% upon the signing of the agreement.[Percentage]% upon the delivery of goods or services.[Remaining percentage]% upon the final transaction closure.
Brokerage commission clause with commission due on closing
This version specifies that the commission is due only upon closing of the transaction.
The Broker’s commission of [percentage]% will be due only upon the closing of the transaction. The commission will be paid within [number] days after the transaction is successfully closed and the funds are transferred.
Brokerage commission clause with commission for both parties
This version specifies that the broker earns commission from both parties.
The Broker shall receive a commission of [percentage]% from both the Buyer and the Seller upon the successful completion of the transaction. Each party is responsible for paying their respective share of the commission within [number] days of the transaction closing.
Brokerage commission clause with commission for international transactions
This version applies to international transactions.
The Broker shall receive a commission of [percentage]% on the total transaction value for any successful international transactions. Payment of the commission shall be made within [number] days after the transaction is closed, including the conversion of currency if applicable.
Brokerage commission clause with commission on asset appreciation
This version includes commission for asset appreciation.
The Broker will receive a commission of [percentage]% on the increased value of any asset or property sold as part of the transaction. The commission is based on the difference between the purchase price and the selling price.
Brokerage commission clause with commission on long-term agreements
This version specifies commission for long-term agreements.
For any long-term agreements secured by the Broker, a commission of [percentage]% will be paid on the total contract value. The commission is due upon signing the contract and will be paid within [number] days.
Brokerage commission clause with sliding scale for larger transactions
This version includes a sliding scale based on the transaction value.
The Broker shall receive a sliding-scale commission as follows:[Percentage]% for transactions up to [specified amount].[Higher percentage]% for transactions between [specified amount] and [higher specified amount].[Even higher percentage]% for transactions exceeding [higher specified amount].
Brokerage commission clause with commission on payments over time
This version applies commission to payments received over time.
If the transaction involves installment payments, the Broker’s commission will be paid in installments, based on the payments received by the Seller. The commission is due within [number] days after each installment is received.
Brokerage commission clause with commission paid for referral business
This version applies commission for referral business.
The Broker shall be entitled to a commission of [percentage]% for any transactions resulting from referrals to third parties. The commission will be due within [number] days after the referred transaction is completed.
Brokerage commission clause with commission for introducing multiple buyers
This version applies a commission for multiple buyer introductions.
If the Broker introduces multiple Buyers to the Seller, the Broker shall receive a commission of [percentage]% for each successful transaction completed with a Buyer introduced by the Broker. The commission will be paid within [number] days of closing.
Brokerage commission clause with commission based on gross profit
This version ties commission to gross profit.
The Broker’s commission will be calculated as [percentage]% of the gross profit generated from the sale, not including the cost of goods sold. The commission will be paid within [number] days after the transaction is finalized.
Brokerage commission clause with commission on closing costs savings
This version ties commission to savings in closing costs.
The Broker shall receive a commission of [percentage]% on any savings achieved on closing costs compared to initial estimates. This savings commission will be paid within [number] days after closing.
Brokerage commission clause with commission for facilitating loan arrangements
This version includes a commission for securing loans.
If the Broker facilitates a loan or financing for the transaction, the Broker will receive a commission of [percentage]% of the loan amount. The commission will be payable within [number] days after the loan is disbursed.
Brokerage commission clause with commission for expedited closings
This version includes a bonus commission for expedited closings.
The Broker will receive an expedited commission bonus of [specified amount] if the transaction is closed within [specified number] days from the initial agreement. The bonus is in addition to the standard commission.
Brokerage commission clause with commission on follow-up deals
This version includes commission on follow-up transactions.
The Broker will receive a commission of [percentage]% on any follow-up transactions, such as renewals, upsells, or additional contracts, that occur within [specified time period] after the initial deal closes.
Brokerage commission clause with commission for multiple deals
This version applies to multiple deals under one agreement.
The Broker shall receive a commission of [percentage]% for each individual transaction under this Agreement, provided each deal is completed successfully. The commission will be paid after each deal is closed.
Brokerage commission clause with commission for high-value assets
This version applies a higher commission for high-value assets.
For transactions involving assets valued over [specified amount], the Broker will receive a commission of [higher percentage]% on the total value of the asset. For assets valued below this amount, the standard commission of [lower percentage]% will apply.
Brokerage commission clause with performance-based commission adjustment
This version adjusts the commission based on performance.
The Broker’s commission will be adjusted based on the following performance criteria:If the transaction exceeds the expected value by [specified percentage], the commission will increase by [percentage]% of the additional value.If the transaction value is less than expected, the commission will decrease by [percentage]% of the difference.
Brokerage commission clause with commission for long-term client relationships
This version provides commission for long-term relationships.
The Broker will receive a commission of [percentage]% for any transaction completed with a client introduced to the Seller within [specified time period]. The commission will continue to be paid for any subsequent transactions with the same client within [number] years of the initial introduction.
Brokerage commission clause with commission for multi-party transactions
This version includes commission for multi-party transactions.
The Broker will receive a commission of [percentage]% from each party involved in a multi-party transaction. The commission for each party will be paid separately within [number] days of transaction completion.
Brokerage commission clause with commission on deposit or retainer
This version applies commission to deposits or retainers.
The Broker shall receive a commission of [percentage]% on any deposit or retainer received by the Seller as part of the transaction. The commission on the deposit or retainer will be paid within [number] days of receipt.
Brokerage commission clause with commission based on final sale price
This version ties the commission to the final sale price.
The Broker’s commission will be calculated based on the final sale price of the asset or property sold. The commission is [percentage]% of the agreed-upon sale price and will be paid within [number] days of transaction closure.
Brokerage commission clause with graduated payment schedule
This version includes a graduated payment schedule for the commission.
The Broker’s commission will be paid in graduated installments:[Percentage]% upon signing of the agreement.[Percentage]% upon the first payment made by the Buyer.[Remaining percentage]% upon final closure of the transaction.
Brokerage commission clause with commission on resale
This version provides commission on resale of assets.
The Broker will receive a commission of [percentage]% for any resale of assets introduced to the Buyer, provided the resale occurs within [specified time period] of the initial transaction.
Brokerage commission clause with commission on total transaction value
This version applies commission based on the total transaction value.
The Broker shall be entitled to a commission of [percentage]% of the total transaction value, including all costs, fees, and any other amounts associated with the transaction. The commission will be paid within [number] days after the transaction’s completion.
Brokerage commission clause with commission for securing exclusive agreements
This version applies a commission for securing exclusive agreements.
The Broker shall receive a commission of [percentage]% for securing exclusive rights or agreements between the Buyer and Seller. The commission is due upon the successful signing of the exclusive agreement.
Brokerage commission clause with commission for sale of intellectual property
This version applies to the sale of intellectual property.
The Broker will receive a commission of [percentage]% of the sale price for any intellectual property assets sold under this Agreement. The commission is due within [number] days after the sale transaction is completed.
Brokerage commission clause with commission on rental agreements
This version applies to rental agreements.
The Broker shall receive a commission of [percentage]% of the total rent value for each rental agreement negotiated and signed under this Agreement. The commission will be paid within [number] days after the lease is executed.
Brokerage commission clause with commission for securing funding
This version includes a commission for securing funding or financing.
The Broker shall be entitled to a commission of [percentage]% of the total funds secured through the transaction. The commission will be paid once the funds have been fully disbursed.
Brokerage commission clause with commission for asset management services
This version includes commission for asset management.
The Broker shall receive a commission of [percentage]% on any assets under management that are sold or leased under the terms of this Agreement. This commission will be paid annually or upon the completion of each transaction.
Brokerage commission clause with commission based on asset performance
This version ties commission to asset performance.
The Broker shall receive a commission of [percentage]% on the total value of the asset sold, adjusted for performance factors such as appreciation or depreciation during the term of the agreement.
Brokerage commission clause with commission for handling dispute resolution
This version includes commission for resolving disputes.
The Broker will receive a commission of [percentage]% for successfully mediating or resolving disputes between the Buyer and Seller. The commission will be paid upon the final resolution of the dispute.
Brokerage commission clause with commission for closing multiple transactions
This version rewards the Broker for closing multiple deals.
The Broker shall receive a commission of [percentage]% for each transaction completed, with an additional bonus commission of [specified amount] for successfully closing [specified number] or more transactions within a [specified time period].
Brokerage commission clause with commission based on cost reduction
This version includes commission based on cost reduction achieved by the Broker.
The Broker will receive a commission of [percentage]% on any savings achieved through negotiated cost reductions during the transaction process. The savings will be calculated based on the difference between the original price and the final agreed price.
Brokerage commission clause with commission based on initial down payment
This version specifies commission for the initial down payment.
The Broker will receive a commission of [percentage]% on the initial down payment made by the Buyer, due within [number] days of receiving the payment.
Brokerage commission clause with commission for international referrals
This version applies commission for international referrals.
The Broker shall receive a commission of [percentage]% for any international clients referred to the Seller that result in successful transactions. This commission will be paid within [number] days after the transaction is completed.
Brokerage commission clause with commission on contract extensions
This version applies commission to contract extensions.
The Broker will receive a commission of [percentage]% on the total value of any extensions or renewals to the original contract. The commission will be paid within [number] days of the contract extension being signed.
Brokerage commission clause with commission for securing exclusive buyers
This version applies commission for securing exclusive buyers.
The Broker shall receive a commission of [percentage]% for securing exclusive buyers for the Seller’s assets or properties. This commission is due upon the completion of the sale.
Brokerage commission clause with performance-based commission increase
This version increases the commission based on performance.
If the Broker exceeds the expected transaction value by [specified percentage], the commission will increase by [percentage]% on the additional value generated.
Brokerage commission clause with bonus for exceeding targets
This version includes a bonus for exceeding targets.
The Broker shall be eligible for a bonus commission if the transaction
value exceeds [specified amount]. The bonus will be calculated as [percentage]% of the amount exceeding the target.
Brokerage commission clause with commission for cross-border transactions
This version includes commission for cross-border transactions.
The Broker shall receive a commission of [percentage]% for transactions involving cross-border trade or international parties. This commission will be paid within [number] days of the transaction being completed.
Brokerage commission clause with commission for high-profile clients
This version applies commission for securing high-profile clients.
The Broker shall receive a commission of [percentage]% for securing high-profile clients who complete transactions under this Agreement. High-profile clients are defined as those generating over [specified amount] in transaction value.
Brokerage commission clause with commission for asset resale within a specific period
This version includes commission for assets resold within a specific time period.
The Broker will receive a commission of [percentage]% for any resale of assets introduced to the Buyer within [specified period] of the original transaction. The commission will be due within [number] days after the resale transaction is completed.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.