Representation of the [Tenant.State] and its respective agencies
This real estate agent and/or broker commission agreement, hereinafter referred to as the “Agreement,” is entered into as of this (day) day of (month), (year), also known as the “Effective Date” by and between:
[Tenant.FirstName][Tenant.LastName]/[Tenant.Company]), hereinafter known as the “Tenant,” at the address [Tenant.StreetAddress], [Tenant.City], [Tenant.PostalCode], hereinafter known as the “Property” and ([Broker.FirstName][Broker.LastName]/[Broker.Company], hereinafter known as the “Broker,” and The State of [Owner.State], hereinafter known as the “Owner,” and collectively known as the “Parties.”
In this Agreement, the following provisions are true and correct:
A. The Owner has legal title and/or rights to the property or land located at the Property, located in (county name) County, [Owner.State] on which tract is an (office building/project, home building/project, apartment building/project), which may also be referred to as (name of project), but will still be further described as the “Property.”
Appraisers Parcel Number (if applicable):
B. The Broker has presented the Property space needs of the Tenant to the Owner and will render services in connection with the (purchase or leasing) of Property space to the Tenant.
C. Should a (Purchase or Lease), herein so-called, be consummate, the Owner agrees to pay The State of [Owner.State] a commission in consideration for the services rendered and to be rendered in consummating a (Purchase or Lease) according to the terms and conditions set form in the Agreement.
D. The Owner acknowledges, understands, and agrees that the Broker is serving as the (sole or non-exclusive) representative of the Tenants’ personal or company interests. Similarly, the Owner acknowledges, understands, and agrees that the applicable fee structures and commission rates outlined below have been mutually agreed upon by the Owner, Tenant, and Broker and have been included within the Owner’s proposal for (Purchase or Lease).
NOW, THEREFORE, in accordance with the mutual promises outlined in the Agreement and state laws and for other valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the parties agree to the following terms:
FAQs
How to write an agreement letter
- Title your document. ...
- Provide your personal information and the date. ...
- Include the recipient's information. ...
- Address the recipient and write your introductory paragraph. ...
- Write a detailed body. ...
- Conclude your letter with a paragraph, closing remarks, and a signature. ...
- Sign your letter.
What is a basic sales commission contract? ›
A sales commission agreement is a legal contract between the company and individual that outlines their specific commission plan (e.g., terms of payment, commission rates, quotas, etc.) — it's proof that both parties have agreed to the terms of incentive compensation.
What is the legal document for commissions? ›
A commission agreement is an essential document for employers and employees who work on commissions. The commission sales agreement lays out the terms of when commissions are paid, how much, and for what. Using a sales commission agreement template is a practical way to create your own.
How do you structure a commission deal? ›
The most widely adopted commission structure type across SaaS pairs a base salary with a commission plan. We recommend a 50/50 split, where 50% of a rep's payout comes from their base salary while the other half comes from sales earnings. We've also seen organizations adopt a 60/40 ratio.
How do I write my own agreement? ›
How to draft a contract between two parties: A step-by-step checklist
- Know your parties. ...
- Agree on the terms. ...
- Set clear boundaries. ...
- Spell out the consequences. ...
- Specify how you will resolve disputes. ...
- Cover confidentiality. ...
- Check the legality of the contract. ...
- Open it up to negotiation.
What is an example of a very simple contract? ›
The following are some real-world examples: One person agreeing to drive while another agrees to pay for gas. One business agreeing to pay another business a certain amount of money in exchange for each referral they receive from them.
What is the simplest form of a contract? ›
As the name suggests, a simple contract is the simplest form of a legally binding agreement between two or more persons or parties. They can be either written or orally agreed upon deals, however, written contracts are preferred for multiple reasons.
How do you write a simple sales agreement? ›
What are the do's of a Simple Sales Contract?
- Determine Customer Needs. Determine what your customer needs before you begin your sales process. ...
- Agree on a Solution. ...
- Indicate the Scope of Work. ...
- Set the Timeline. ...
- Establish Pricing & Payment Requirements. ...
- Create Service Terms. ...
- Send the Sales Contract for Review & Signature.
What is a normal commission structure? ›
The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.
What is the formula for commission? ›
Commission is earnings from a sale. Typically, companies pay out a percentage based on total sales revenue. Commission can be calculated with this formula: commission = total sales revenue * commission rate. Base pay can also be incorporated into this equation by simply adding it to the commission earned.
Example: A salesperson earns $500 a month in salary with 10% commission, or $500, for $5,000 worth in sales. If he sells $20,000 of product in one month, he earns $2,500: $500 in salary and $2,000 in commission.
Do commission agreements need to be in writing? ›
According to California Labor Code Section 2751, a contract of employment involving commissions needs to be in writing and state the services to be rendered, the contemplated method of payment and the method by which the commission should be dealt with.
What is a commission agency agreement? ›
A commission agreement template is a legal form that outlines the process and policies for paying commissions to an employee or independent agent. It specifies how much, when, and what percentage will be paid to them for their services.
How do you structure a commission sheet? ›
While commission sheets will vary based on the type of sales commission structure you're using, they should include the name of the sales rep, the product or service sold, the revenue or gross profit, the commission percentage, and a formula that will calculate the commissions for each sale.
What is a good sentence for commission? ›
Examples of commission in a Sentence
Noun She served on the city's water commission. Both states set up commissions to examine their public schools. She gets a commission for each car she sells.
What is an example of a sales commission policy? ›
For example, a sales rep may receive an 8% commission rate until they close 100 deals. After the 100th deal, they then start earning an 11% commission rate. This can also be arranged based on the dollar amount. This compensation structure is great for top performers and sales reps who are highly motivated.