Browse Proptionary encyclopedia

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Cooperating Broker

DEFINITION

Broker who locates a ready, willing, and able buyer on behalf of another broker’s listing.

EXPLANATION

A cooperating broker is one who aids the listing broker facilitate the execution of a real estate transaction by introducing a buyer or seller for the purchase of property. Cooperating brokers typically help listing brokers locate buyers for a property listed by the listing broker. In return for introducing a buyer, seller, or aiding the listing broker, the cooperating broker is entitled to a portion of the commission.

The commission structure agreed to by the cooperating and listing broker is dependent on the agreement amongst the parties. The distribution of commission between a listing broker and cooperating broker is called cooperating split. A cooperating broker is most commonly an agent of the Listing brokers employ cooperating broker to find suitable clients for their business. To ensure parties entitled to commission receive their due, principals and brokers sign what is referred to as a safety clause. A safety clause is a provision that guarantees the agent/brokers get paid their commission.

In some situations, multiple agents may contribute to the execution of a real estate transaction. A cooperating broker fee agreement is a listing in which more than one broker agrees to represent a client for the purchase or sale of real property. Such an agreement indicates the duties of each party and how the commission will be split.

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