Commercial Real Estate Representation Agreements in Alberta

1. Start with the correct parties and authority

Identify the legal client, authorized signatory, licensed brokerage and affected property or requirement. Reconcile corporate, partnership, trust, estate or joint-ownership authority before assuming one contact can bind every owner, buyer, landlord or tenant.

The agreement is with the brokerage providing the licensed service. Record the individual professional and team responsible for delivery without substituting a brand name or marketing platform for the legal brokerage party.

2. Define the assignment boundary

State whether the mandate concerns sale, acquisition, lease, sublease, renewal, site search, confidential outreach or another interest in real estate. Define the property, market, transaction type, size, use, price or rent parameters and any excluded assets, buyers, tenants or opportunities.

For an exclusive agreement, understand what activity is reserved to the brokerage and whether a transaction sourced by the client, another brokerage or a pre-existing contact can trigger obligations. Use schedules for named exclusions and prior discussions where appropriate.

• Legal parties
• Property or requirement
• Transaction type
• Market and term
• Exclusivity
• Named exclusions

3. Turn services into deliverables

List the brokerage work: intake, document review, market analysis, positioning, media, distribution, outreach, property search, touring, inquiry qualification, reporting, negotiation support, condition tracking and closing coordination. State which services require separate approval or cost.

Separate brokerage services from legal drafting, appraisal, tax, environmental, engineering, building, planning, lending and other specialist conclusions. The brokerage can coordinate a work plan without representing itself as the qualified professional for every issue.

4. Record the client's responsibilities

Set expectations for accurate property and corporate information, access, approvals, disclosure of material facts, decision timing, professional advisors, funds, insurance and compliance. Identify who supplies source records and who can approve their public or controlled release.

A service agreement does not convert client estimates into verified facts. Material changes to occupancy, condition, price, authority, environmental information or transaction structure should be communicated and corrected promptly.

5. Make compensation mechanics complete

State the amount or calculation method, applicable tax, payment event, paying party, cooperating-brokerage treatment, expenses, retainers or alternate compensation and circumstances that may remain relevant after expiry or termination. Use examples only if they match the operative wording.

RECA's Rules require licensees to disclose how they will be paid at the earliest practical opportunity. Compensation should be evaluated with the services, risk, exclusivity and execution obligations rather than as an isolated percentage or fee.

6. Control confidential and personal information

Describe how property, financial, tenant, buyer, ownership and personal information may be collected, used and distributed. Use staged access, qualification and secure delivery for sensitive records and identify information that cannot be disclosed without authorization or law.

Under RECA's Rules, a licensee must not disclose client, property or transaction information to another person unless authorized by the client or required by law. The brokerage must maintain policies and procedures that protect personal and confidential information.

7. Address relationships and conflicts before they occur

The agreement should identify the agency model and explain how the brokerage responds if it or a designated agent is connected to another party in the same transaction. Ask what choices remain available and what written consent or change of relationship would be required.

Transaction brokerage, designated agency and customer status are different structures. A client should understand changes to loyalty, advocacy, confidential advice, judgment and information flow before consenting.

8. Read duration, amendments and termination together

Confirm effective date, duration, renewal, suspension, termination rights, notice method, outstanding marketing or data obligations, document return, confidentiality survival and any post-expiry compensation provision. Ending active work may not resolve every contractual consequence.

Section 43 of RECA's current Rules says written amendments or additions must be signed by the relevant parties and a true copy must be delivered immediately after signature. Obtain legal advice on the agreement and any termination issue; this guide is educational, not contract interpretation.