TXR 2402 — Compensation Agreement Between Brokers

The form title and a notice restricting use to Texas Association of REALTORS members only.

Identifies the two broker parties to the agreement: the listing/principal broker (who represents the property owner) and the cooperating broker (who represents the buyer/tenant client). Includes full contact information for both parties.

Identifies the specific property that is the subject of this compensation agreement. The property includes all improvements and fixtures. Can be described by full address or by reference to an attached exhibit.

The cooperating broker formally registers their client (the buyer or tenant) with the listing/principal broker. This establishes the agency relationships: the listing broker represents the owner, and the cooperating broker represents the client.

Defines the time period during which this compensation agreement is active. The client must enter into a binding agreement to buy or lease the property during this term for compensation to be earned.

The core compensation section. Defines the fee structure (percentage, flat fee, or custom for sales and/or leases), when fees are earned (client enters binding agreement during the term), when fees are payable (cooperating broker is procuring cause and closing/lease execution occurs), the listing broker's protection if they cannot collect their own fee, authorization for closing agents to disburse, and related party protections to prevent circumvention.

Standard integration clause establishing that this written agreement is the complete and final agreement between the brokers, superseding any prior agreements on the same subject. Any changes must be in writing.

Execution block where both brokers (or their authorized associates) sign and date the agreement, providing their printed names and TREC license numbers.