Agent Commission Sharing Agreement

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Agent Commission Sharing Agreement

Agent Commission Sharing Agreement: A Comprehensive Guide

Real estate agents work hard to close deals and earn a commission. However, in some cases, a single agent may not be able to handle a complex and high-value transaction on their own. In such situations, agents may choose to work together and share commission payments.

An agent commission sharing agreement is a contract that specifies how multiple agents will collaborate and divide the commission earned from a particular transaction. The agreement outlines the roles and responsibilities of each agent, the percentage of commission to be shared, and the terms and conditions of the agreement.

Why Use an Agent Commission Sharing Agreement?

Working together and sharing commissions has several benefits for agents. First and foremost, it allows agents to take on more complex transactions that they might not have been able to handle alone. By pooling their resources, agents can leverage their respective expertise and experience to close deals that would otherwise be out of reach.

Additionally, sharing commissions allows agents to expand their networks and build relationships with other professionals in the industry. Collaborating on transactions can help agents establish trust and rapport with their peers, which can lead to future opportunities.

Finally, sharing commissions can be financially beneficial for agents. By working together, agents can split the commission earned from a transaction, which can potentially result in a higher payout than if they had each worked on their own.

What to Consider When Drafting an Agent Commission Sharing Agreement

When drafting an agent commission sharing agreement, there are several key factors to consider, including:

1. Roles and Responsibilities: The agreement should clearly outline the roles and responsibilities of each agent involved in the transaction. This includes who will handle the client relationship, who will handle negotiations, and who will be responsible for closing the deal.

2. Commission Percentage: The agreement should specify the percentage of commission that each agent will receive. This percentage should be agreed upon by all parties involved and should reflect the amount of work and resources contributed by each agent.

3. Payment Terms: The agreement should detail the payment terms for the commission, including when payments will be made and how they will be distributed.

4. Termination and Dispute Resolution: The agreement should include provisions for terminating the agreement and resolving disputes between the parties. This can help prevent misunderstandings and conflicts from arising during the transaction.

5. Confidentiality: The agreement should include a confidentiality clause to protect any sensitive information about the transaction or the parties involved.


An agent commission sharing agreement is a useful tool for agents looking to collaborate on a high-value transaction. By outlining the roles and responsibilities of each agent, setting commission percentages, and detailing payment terms, agents can work together in a structured and productive way. If you`re considering working with another agent on a complex transaction, a commission sharing agreement can help ensure a successful outcome for all parties involved.