A conjunction agreement is the written contract between collaborating agents that sets out who does what, how the commission is split, and when each party gets paid. It is the single most important document in any conjunction, and the difference between a clean deal and a commission dispute that ends in court.
What is a conjunction agreement?
A conjunction agreement is a written contract between two or more agencies who agree to work together on a specific listing and share the commission if it settles. Typically one agency holds the vendor authority and another introduces the buyer. The agreement records the commercial terms between the agents, separate from the listing authority the vendor signs. For the bigger picture, see our complete guide to real estate conjunctions.
The key terms every conjunction agreement should include
- Parties and authority: legal names and ABNs of each agency, and which agency holds the vendor authority.
- Scope: the specific property or opportunity the conjunction covers, and each agent's role.
- Commission split: the exact percentage or dollar split (for example 50/50 or 60/40), and whether amounts include GST.
- Payment trigger: when commission is earned and payable, usually on settlement.
- Effective cause and introductions: how buyer introductions are recorded, and a protection period if an introduced buyer transacts later.
- Confidentiality: how vendor and buyer information may be used.
- Dispute resolution and termination: how disagreements are handled and how the agreement ends.
The "effective cause" trap
The most common reason agents lose commission in a conjunction is a dispute over who was the "effective cause" of the sale. If two agents both claim to have introduced the buyer, and there is no clear, timestamped record, the entitlement can come down to interpretation, or be denied entirely. We unpack real cases in how to avoid conjunction commission disputes.
Why verbal and informal agreements fail
A handshake feels fast, but it leaves everything to interpretation. Important terms get buried in long message threads, different agents work from different assumptions, and there is no single source of truth. When a deal is worth tens of thousands in commission, that is a risk no agent should take.
How digital execution protects your commission
When the agreement is executed digitally inside one workflow, the terms are consistent, everyone can see the status, and the record is clear and timestamped. That makes the deal easier to trust and far easier to defend if a question ever arises. We go deeper in how digital conjunction agreements reduce disputes.
Protect every conjunction with BuyFinder
BuyFinder lets agents execute conjunction agreements digitally, register buyer introductions with a clear record, and manage the whole deal in one place, so your commission is protected by structure, not by hope. See how it works or add your listing to get started.