SUB-BROKER OR ASSOCIATE AGREEMENT
How a broker works with an associate who brings in deals for a share of the brokerage
Executed at __________ on __________.
Parties
1. The Principal Broker — __________, of __________, mobile __________ ("the Principal Broker").
2. The Associate — __________, of __________, mobile __________ ("the Associate").
1. The arrangement
1.2 The Associate works for a share of brokerage and not for a salary. The Associate is not the Principal Broker's employee, and may choose when and how to work, within the Principal Broker's reasonable instructions about a particular client.
1.3 The Associate has no authority to sign for the Principal Broker, to bind it, to take a booking amount or token, or to make a promise to any client in its name. All money for a transaction goes to the owner or the builder named in the transaction papers, never to the Associate.
2. The share
2.3 Where the Principal Broker's client does not pay, the Principal Broker will take reasonable steps to recover the brokerage and will tell the Associate. The Associate may not claim the Share from the client, only from the Principal Broker, and only after the Principal Broker is paid.
2.4 A transaction counts as the Associate's if the Associate first introduced the client or the property to the Principal Broker in writing, including by message, and the Principal Broker accepted it.
3. Conduct and compliance
3.1 The Associate will give clients true information, will not exaggerate a property or promise a price, and will use only material the Principal Broker has approved.
3.2 Where a project is registered with a Real Estate Regulatory Authority, the Associate will not deal in it unless the law permits the Associate to do so under the Principal Broker's registration or the Associate's own.
3.3 Each of them is responsible for the tax on what that person receives.
4. Confidence
4.1 The Associate will keep the Principal Broker's client lists, prices and business information confidential and will not take or copy them when the arrangement ends.
4.2 For a transaction on which the Associate was introduced to a client or property by the Principal Broker, the Associate will not deal with that client or property directly or through anyone else for the Share to be bypassed. This clause applies to that transaction only, and does not stop the Associate working as a broker once the arrangement ends.
5. Term and ending
5.3 On ending, the Associate returns all material and client papers. The Share on a transaction the Associate brought in before the end remains payable when the Principal Broker is paid.
6. General
6.2 Nothing in this agreement makes them partners, or either the agent of the other for any purpose except as it states.
6.3 A notice under this agreement is given in writing, by hand or by email, to the address given above.
Personal data
The names, addresses, telephone numbers and email addresses in this document are collected only for the purpose of this document and the transaction it records. Each party keeps a copy. It will not be used for marketing or shown to anyone except the parties, their advisers and any authority or court that requires it. A party may ask the other to correct it or, once the purpose has ended, to erase it, as the Digital Personal Data Protection Act, 2023 allows. No Aadhaar number, PAN or bank-account number is collected here.
Signatures
The Principal Broker
Signature: _________________________
Name: __________
The Associate
Signature: _________________________
Name: __________
Witnesses
Witness 1
Signature: _________________________
Name: _________________________
Address: _________________________
Witness 2
Signature: _________________________
Name: _________________________
Address: _________________________