A co-broker agreement template records each broker's duties on a shared client file, their upfront and trail split, payment timing and what happens when the arrangement ends. Use the clause checklist below to prepare the terms before either party starts work.
The checklist also covers agents who work your files. Have a lawyer adapt the wording to your business and the way each party operates.
When Brokers Share a File
A shared file often starts when one broker brings the client and another holds the accreditation, licence coverage or expertise the loan needs. A co-broker agreement puts each party's contribution and responsibility in writing.
An introducing broker agreement can cover the referral alone or ongoing work on the file. State which arrangement you intend. Without written terms, disputes about the introduction, trail entitlement and compliance responsibility depend on each party's memory.
The Components Your Template Needs
Build the template around four groups of terms, then add a separate clawback clause. Complete the details for each shared file instead of leaving the parties to agree them later.
Parties and Roles
Record each party's legal name, business details and Australian credit licence or credit representative details. Name the person responsible for each task on the file.
Assign the client conversation, document collection, assessment and lodgement. Record who answers lender questions, provides required disclosures and handles complaints. Identify who supervises the work under the relevant licence.
Scope of Work
Define the client and transaction the agreement covers. List the products and lenders within scope, and say whether later loans for the same client need a new agreement.
Set limits on direct client contact and separate business approaches. Record any lender accreditation needed for the work. Sharing a file does not give either broker the other party's authorisations.
Commission Splits and Fees
Write separate percentages for upfront and trail. Define the amount each percentage applies to, including the treatment of aggregator deductions and GST.
State how referral fees and administration costs divide. If the split changes with the source of the client or the work performed, attach a schedule for each case.
For example, a hypothetical 40% share of $1,000 in trail received gives the introducing broker $400. A 40% share after a $100 deduction gives them $360. Specify the calculation basis so both parties produce the same result.
A broker-to-broker commission agreement governs payments between the businesses. Use a separate mortgage broker fee agreement for fees charged to the client.
Payment Terms
Set the event that makes a payment due, such as receipt of cleared commission from the aggregator. State the payment method and number of business days allowed after that event.
Require a statement showing the commission received and the split calculation. Set a process for short payments, corrections and disputed amounts, including payment of any undisputed balance.
Clawback
Give clawback its own clause. Define how a reversed commission divides and which lender or aggregator terms apply to the file.
Record who supplies the clawback notice, when repayment is due and whether an agreed deduction can come from future commission. State what happens if the relationship ends before the clawback arrives.
Compliance Clauses Worth Adding
Record each party's licence coverage and responsibility for the work they perform. Require disclosure of conflicts and an explanation to the client of who provides credit assistance and how the parties are paid.
The privacy clause must address consent, permitted use of client information and secure file sharing. Set access permissions and the process for reporting a privacy incident. Describe how records are retained and returned when access ends.
Require licensee and aggregator approval before sharing commission with an outside party. Keep the written approval with the agreement and make commencement conditional on any required consent.
Insurance Requirements
State the minimum professional indemnity cover required for each party's work. Record whether the party has its own policy or receives cover through the licensee's arrangements.
Require evidence of current cover on request and notice of cancellation or a material change. Use the professional indemnity insurance guide when setting the cover requirements with your licensee and adviser.
Duration, Termination and Disputes
Give the agreement a defined term and any renewal process. List termination grounds, including breach, insolvency and mutual agreement, with the notice period for each.
Set a handover process for active files and outstanding payments. Write how long the trail split continues after termination and what events end that entitlement.
Use a dispute process that starts with written notice of the issue and mediation before litigation, subject to any necessary urgent relief. Specify how the mediator is appointed and how mediation costs divide.
Client Ownership After the Deal
Record who maintains the client relationship after settlement and who handles future loan enquiries. Say whether referrals between the parties carry a fee and how that fee is calculated.
Keep client choice and privacy obligations in view when drafting these terms. An agreement between brokers cannot decide which broker a client must use.
Agreements With Agents Who Work Your Files
An agent agreement must define what the agent can do for the brokerage and which actions need your approval. Match those limits to the agent's actual licence coverage.
- List permitted tasks, such as collecting documents or preparing file notes. State prohibited actions, including giving credit assistance outside the agent's authorisation or committing the brokerage to unapproved fees.
- Set service standards for responding to enquiries and completing assigned work. Name the supervisor, required progress reports and the process for escalating complaints or a file error.
- Record the fee or commission formula, payment trigger and clawback treatment. Require approval before expenses are incurred and define the evidence needed for reimbursement.
- State who maintains the client relationship. Require records to stay in the approved CRM, with access limited to the agent's duties and a handover when the appointment ends.
- Cover confidentiality and privacy, including consent for sharing documents and the return of business information. Set the process for removing access when work ends.
Calling an agent a contractor does not decide whether they are an employee. Fair Work's contractor guidance explains that the applicable test depends on the business and engagement. Its whole of relationship test considers both the contract and how the work happens in practice.
The Australian Taxation Office's Taxation Ruling TR 2023/4 also explains why a contractual label cannot override the rights and obligations that establish the relationship.
An external agent giving credit assistance on your behalf needs the appropriate appointment under the licence before starting. The Australian Securities and Investments Commission's INFO 126 credit representative guidance explains written authorisation and supervision. Employees and directors of a licensee have different formal authorisation requirements.
For a growing brokerage, set these reporting lines alongside your mortgage broker team structure. Keep employment contracts separate from this shared-file clause checklist.
Execution Details That Keep It Enforceable
Complete the execution checks before work starts. Ask the lawyer reviewing your template to confirm the signing method for each entity.
- Every named party signs through a person with authority to bind that entity.
- The agreement records its effective date and when each obligation begins.
- Witnessing follows the applicable execution requirements and your licensee's process.
- Each party receives an executed copy, and the brokerage stores one with its compliance records.
Before Your Next Shared File
Update your template with the agreed roles and payment formula. Have a lawyer review the final wording once, then confirm the licensee's approval process for commission sharing.
Before work begins, both parties must be able to calculate the same payment from the same statement and identify who handles each task. Resolve any difference in the written agreement before taking on the shared file.
