A commercial loan broker fee agreement is a legal document that outlines the terms and conditions of the compensation for a broker`s services in securing a loan for a commercial borrower. The document specifies the fee structure, payment terms, and other essential details that govern the relationship between the broker and the borrower.

Here`s an overview of a sample commercial loan broker fee agreement:

1. Parties Involved:

The agreement begins with a formal statement of parties involved, including the borrower, the broker, and any other relevant parties.

2. Scope of Services:

This section outlines the scope of services provided by the broker. It includes the tasks and responsibilities of the broker in securing the loan, such as identifying financing options, negotiating terms, and preparing loan applications.

3. Fees and Payment Terms:

The fee structure and payment terms are the heart of the agreement. It specifies the type and amount of compensation paid to the broker for its services. The fee can be a percentage of the loan amount, a flat fee, or a combination of both.

The agreement also outlines the payment terms, including the date, frequency, and mode of payment. The borrower is usually responsible for paying the broker`s fee, and it can be paid upfront or at closing.

4. Termination and Liability:

This section explains the grounds for termination of the agreement by either party. It also outlines liability and indemnification terms, which specify the broker`s responsibility for its actions and ensure that it is held harmless for any damages or losses incurred by the borrower.

5. Governing Law and Jurisdiction:

The agreement ends with a statement of governing law and jurisdiction, which specifies the laws that govern the agreement and the court where disputes will be resolved.


A commercial loan broker fee agreement is a crucial document that governs the relationship between the broker and the borrower. It ensures transparency, clarity, and fairness in the compensation for the broker`s services. As a professional, I highly recommend that borrowers and brokers consult legal counsel before finalizing any commercial loan broker fee agreement to ensure that all parties` interests are protected.