What Is a Realtor Cooperation Agreement?
A realtor cooperation agreement is an arrangement between real estate brokers to work together on a transaction and share the commission. Most commonly, a listing broker (representing the seller) agrees to compensate a cooperating broker who brings the buyer. Cooperation is what allows a buyer's agent and a seller's agent from different firms to combine to close a sale.
How Cooperation Works
- The listing broker markets the property and, by agreement, offers compensation to a cooperating broker
- The cooperating (selling) broker brings a ready, willing, and able buyer
- The brokers split the commission per their agreement when the sale closes
Florida Considerations
Cooperation and compensation terms must be clear, because disagreements over who earned the commission ("procuring cause") are a common source of disputes. Recent changes in the real estate industry — including new rules on how buyer-broker compensation is offered and negotiated — have made written cooperation and buyer-broker agreements more important than ever. In Florida, broker compensation and cooperation are also subject to real estate licensing law and the duties brokers owe their clients. Clear, written terms protect everyone and keep the focus on closing the deal.
Related Terms
- Broker — The party to a cooperation agreement
- Commission — What cooperating brokers share
- Open Listing — A listing type affecting cooperation
Barnes Walker Real Estate
Barnes Walker's real estate attorneys advise Florida brokers on cooperation, commission, and procuring-cause issues. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC