Colombian Brokerage Agreements: What to Require Before Signing
A brokerage agreement (contrato de corretaje) is what you sign when someone helps you find a counterparty for a deal: selling a warehouse, leasing a commercial space, finding a buyer for a business. A commission is paid, and most disputes start in the same place: how much, when, and who pays wasn't clear in writing.
This guide explains what brokerage is in Colombia, what the relevant rules say, and which clauses to require, whether you are hiring the broker or you are the broker.
What brokerage is: article 1340 of the Commercial Code
Article 1340 of the Commercial Code defines the broker as someone who, through specialized knowledge of the markets, acts as an intermediary to bring two or more people together for a commercial deal. Two details change how you should read your contract:
- The broker is not bound to the parties through collaboration, employment, agency, or representation. In other words, the broker does not represent you: they bring the parties together, but do not negotiate or sign for you.
- The broker must inform the parties of the circumstances they know of that may influence the deal.
Who pays the commission
Unless otherwise agreed, article 1340 says the broker's pay is paid by the parties in equal shares. The key words are "unless otherwise agreed": if your contract says something else, that's what counts. That's why it should be written, so you don't rely on a default rule nobody remembered when signing.
The clauses to require
| Clause | What to require | Why it matters |
|---|---|---|
| Commission | Percentage or fixed amount, and what base it is calculated on (sale price, with or without taxes) | Without a base, each side calculates its own |
| When it is earned | The exact event that creates the right: signing the promise, signing the deed, or receiving payment | It is the cause of almost every conflict |
| Who pays | Who bears it and in what proportion (article 1340 splits it equally unless agreed otherwise) | Avoids cross-claims |
| Term and exclusivity | Duration, and whether the broker is the only one authorized | Without a term, the relationship stays open |
| Information | What the broker must report and when | It is their legal duty and worth spelling out |
| Expenses | Whether the commission includes expenses or they're charged separately | Avoids surprise charges |
| Late payment | Whether there is interest for paying late, and at what rate (see below) | There is a legal cap |
| Termination | How it ends, and whether commission is owed on deals closed afterward | Defines what happens with clients already introduced |
Interest for late payment: there is a cap
If the contract charges interest for not paying the commission on time, article 884 of the Commercial Code sets a limit: both remunerative and default interest cannot exceed one and a half times the current bank interest rate certified by the Financial Superintendence (wording from Law 510 of 1999). Charging above the usury limit can amount to the crime in article 305 of the Criminal Code.
The certified current bank rate changes periodically: before putting a rate in the contract, confirm the one in force with the Financial Superintendence.
How to collect the commission: the enforceable instrument
If the client doesn't pay, the fastest route is an enforcement proceeding (proceso ejecutivo). Article 422 of the General Procedure Code says that obligations that are express, clear, and due and are recorded in documents that come from the debtor and constitute full proof against them can be enforced.
That gives your contract a concrete job:
- Express: it states the obligation in writing (how much and why).
- Clear: no blanks and no phrases like "to be agreed".
- Due: the payment moment is defined and has already arrived.
- From the debtor: signed by whoever has to pay.
The instrument can be complex: if the commission depends on facts (for example, that the deed was signed), it can be accompanied by other documents that prove them. Keep them. Formal defects in the instrument are raised through a motion for reconsideration against the enforcement order.
Common mistakes in brokerage agreements
- Blanks like "Warehouse No. ____" or "[NUMBER OF DAYS]": an instrument with gaps isn't clear.
- A commission with no calculation base: "3%" of what?
- Figures and words that don't match: read how to catch them.
- No definition of when the commission is earned.
- Exclusivity with no term.
How The Catch helps
The Catch reviews a brokerage agreement against Colombia's Commercial Code: it flags blanks, figures that don't match, and clauses that leave the commission without a base or a trigger, and proposes corrected wording. It can also draft brokerage agreements from scratch. It doesn't replace a lawyer when a lot of money is at stake.
Frequently asked questions
Who pays the broker, the seller or the buyer?
Unless otherwise agreed, article 1340 of the Commercial Code says the parties pay the remuneration in equal shares. If they want a different split, it must be in the contract.
Does the broker represent me?
No. Under article 1340, the broker is not bound to the parties through agency or representation: they bring the parties together, but do not negotiate or sign for either.
Can I charge interest if the commission is paid late?
Yes, if the contract provides for it, but with a cap: it cannot exceed one and a half times the current bank interest rate certified by the Financial Superintendence (article 884 of the Commercial Code). Charging above the limit can be the crime of usury.
Is a brokerage agreement good for an enforcement proceeding?
It can be, if the obligation is express, clear, and due, is recorded in a document that comes from the debtor, and is full proof against them (article 422 of the General Procedure Code). A contract with blanks or no payment date is harder to use.
Does it have to be in writing?
Although in practice it's always wise to put it in writing, this article does not claim the law requires it in every case. What is certain is that without writing it's much harder to prove how much, when, and who has to pay.
Official sources
- Commercial Code, articles 884 and 1340 (Función Pública)
- General Procedure Code, article 422 (Función Pública)
- Default and remunerative interest (Financial Superintendence)
Information verified against these sources on October 14, 2026. Rules change: confirm the current text before deciding. This article is general information and is not legal advice.
This article is general information and is not legal advice. For your specific case, consult a lawyer.