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Broker Agreement

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INDEPENDENT CONTRACTOR BROKER AGREEMENT

THIS AGREEMENT made and entered into on the date last written below, by and between (hereinafter "Employer"), and , an independent contractor (hereinafter "Broker");

WHEREAS, the Employer desires to retain the services of Broker, and Broker desires to render services to the Employer, upon the terms and conditions hereinafter stated:

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, do hereby promise and agree as follows:

SECTION 1 – SCOPE OF DUTIES TO BE PROVIDED

1.1 Term. Employer agrees to hire Broker, at will, for a term commencing on , 20 and continuing until terminated in accordance with Section 4 of this agreement.

1.2 Duties. Broker agrees to perform work for the Employer on the terms and conditions set forth in this agreement and agrees to devote all necessary time and attention (reasonable periods of illness excepted) to the performance of the duties specified in this agreement. Broker's duties shall include the following:

Broker further agrees that in all aspects of such work, Broker shall comply with the policies, standards, regulations of the Employer from time to time established, and shall perform the duties assigned faithfully, intelligently, to the best of his/her ability, and in the best interest of the Employer.

SECTION 2 – CONFIDENTIALITY

2.1 Confidentiality. Broker acknowledges and agrees that all records, lists and information pertaining to clients and cases and other Employer and client data and information related to its business (hereinafter collectively "Confidential Information") are valuable assets of the Employer. Except for disclosures required to be made to advance the business of the Employer and information which is a matter of public record, Broker shall not, during the term of this Agreement or after the termination of this Agreement, disclose any Confidential Information to any person or use any Confidential Information for the benefit of Broker or any other person, except with the prior written consent of the Employer. Employer understands that certain Confidential Information may be required to be disclosed to certain individuals: directors, officers, employees, agents, or advisors (collectively, Representatives) of Broker. Broker shall maintain records of the persons to whom Confidential Information is distributed, will inform all such persons of the confidential nature of the information, will direct them to treat such information in accordance with this agreement, will exercise such precautions or measures as may be reasonable in the circumstances to prevent improper use of Confidential Information by them, and will be responsible for any breaches by them of the provisions of this agreement.

The term “confidential information” does not include information that is or becomes publicly available (other than through breach of this Agreement) or information that is or becomes available to Broker on a non-confidential basis, provided that the source of such information was not known by Broker (after such inquiry as would be reasonable in the circumstances) to be bound by a confidentiality agreement or other legal or contractual obligation of confidentiality with respect to such information. In the event that Broker or any of Broker’s representatives, assigns, or agents are requested or required by law or legal process to disclose any of the Confidential Information, the party required to disclose such information shall provide Employer with prompt oral and written notice before making any disclosure. In addition, Confidential Information may be disclosed to the extent required in the course of inspections or inquiries by federal or state regulatory agencies to whose jurisdiction Broker is subject and that have the legal right to inspect the files that contain the Confidential Information, and Broker will advise Employer promptly upon such disclosure.

2.2 Return of Documents. Broker acknowledges and agrees that all originals and copies of records, reports, documents, lists, plans, memoranda, notes and other documentation related to the business of the Employer or containing any Confidential Information shall be the sole and exclusive property of the Employer, and shall be returned to the Employer upon the termination of this Agreement or upon the written request of the Employer.

2.4 No Release. Broker agrees that the termination of this Agreement shall not release Broker from any obligations under Section 2.1 or 2.2.

SECTION 3 - COMPENSATION

3.1 Compensation. In consideration of all services to be rendered by Broker to the Employer, the Employer shall pay to said the amount of $ per

3.2 Withholding; Other Benefits. Compensation paid pursuant to this Agreement shall not be subject to the customary withholding of income taxes and other employment taxes. Broker shall be solely responsible for reporting and paying any such taxes. The Employer shall not provide Broker with any coverage or participation in the Employer's accident and health insurance, life insurance, disability income insurance, medical expense reimbursement, wage continuation plans, or other fringe benefits provided to regular employees.

SECTION 4 - TERMINATION

4.1 Termination at Will. This Agreement may be terminated by the Employer immediately, at will, and in the sole discretion of Employer. Broker may terminate this Agreement upon days written notice to Employer. This Agreement also may be terminated at any time upon the mutual written agreement of the Employer and Broker.

4.2 Contract Duration Notwithstanding Section 4.1 of this Agreement, the duration of this contract shall be for a period of months years and shall terminate on , 20 .

SECTION 5 - INDEPENDENT CONTRACTOR STATUS

5.1 Broker acknowledges that he/she is an independent contractor and is not an agent, partner, joint venturer nor employee of Employer. Broker shall have no authority to bind or otherwise obligate Employer in any manner beyond that specified in the Agreement, nor shall Broker represent to anyone that it has a right to do so. Broker further agrees that in the event that the Employer suffers any loss or damage as a result of a violation of this provision Broker shall indemnify and hold harmless the Employer from any such loss or damage.

5.2 Assignment. The Broker shall not assign any of his/her rights under this agreement, or delegate the performance of any of his/her duties hereunder, without the prior written consent of the Employer.

SECTION 6 - REPRESENTATIONS AND WARRANTIES OF BROKER

6.1 Broker represents and warrants to the Employer that there is no employment contract or other contractual obligation to which Broker is subject, which prevents Broker from entering into this Agreement or from performing fully Broker's duties under this Agreement.

6.2 Broker represents that he/she is licensed by the appropriate licensing agency for the profession and that he/she is in good standing with such agency.

6.3 The following are the required licenses and certifications held by broker:

SECTION 7 - INSURANCE.

Broker shall obtain and maintain in force, at its own expense, throughout the performance of his/her/its obligations under this Agreement, insurance coverage against claims, regardless of when asserted, that may arise out of, or result from, Broker's operations in connection with the services or duties described above. This insurance shall include the following coverage(s) that is(are) checked below:

SECTION 8 - MISCELLANEOUS PROVISIONS

8.1 The provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives, successors and assigns of the parties. Any provision hereof which imposes upon Broker or Employer an obligation after termination or expiration of this Agreement shall survive termination or expiration hereof and be binding upon Broker or Employer.

8.2 No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

8.3 This Agreement shall be governed by and shall be construed in accordance with the laws of the State of .

8.4 This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersedes all prior contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all parties.

8.5 Severability. If any provision of these policies and regulations or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of these policies and regulations which can be given effect without the invalid provision or application, and to this end the provisions of these policies and regulations are severable. In lieu thereof there shall be added a provision as similar in terms to such illegal, invalid and unenforceable provision as may be possible and be legal, valid and enforceable.

WITNESS OUR SIGNATURES, this the day of of , 20 .

EMPLOYER

BROKER

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What a Broker Agreement Is and when it applies

A Broker Agreement is a written contract that defines the relationship between a broker and a client or another broker, spelling out duties, authority, compensation, term, and termination conditions. It covers listing, buyer representation, insurance or financial brokerage services, or referral arrangements. The agreement allocates obligations such as disclosure duties, licensing compliance, confidentiality, and recordkeeping. Properly drafted and signed, the Broker Agreement sets expectations, reduces disputes, and provides evidence of the parties' consent and consideration in commercial or regulated transactions.

Why a clear Broker Agreement matters

A concise Broker Agreement protects both parties by documenting scope of services, commission terms, and authority to act. It clarifies responsibilities, reduces liability exposure, and supports enforcement if disputes arise. For regulated sectors, the agreement also helps meet licensing, disclosure, and recordkeeping obligations under applicable state law and federal rules.

Why a clear Broker Agreement matters

Who commonly prepares and signs these agreements

Broker Agreements are used by licensed brokers, broker-dealers, insurance agents, real estate firms, and clients who engage those services.

  • Real estate brokers and agents who list or represent buyers under state real estate licensing rules.
  • Insurance brokers and agents who arrange coverage or handle claims for clients.
  • Financial brokers and registered representatives who manage investments or introduce business to broker-dealers.

Typical signers include the licensed broker or brokerage firm and the client or counterparty; authorized corporate officers sign for business entities.

Core clauses a professional Broker Agreement should include

A complete Broker Agreement balances commercial detail with legal clarity so both parties understand scope, payment, and protections.

Parties

Identify full legal names and entity types for broker and client, including state of formation when applicable.

Scope

Describe services, territories, exclusivity, and any deliverables or milestones to avoid ambiguity about broker duties.

Compensation

State commission rates, payment triggers, expense reimbursement, and handling of refunds or clawbacks.

Term and Termination

Specify effective date, duration, renewal terms, and permitted termination events with notice requirements.

Compliance

Include licensing, disclosure, recordkeeping obligations, and any industry-specific regulatory covenants.

Confidentiality

Define confidential information, permitted disclosures, duration of non-disclosure, and remedies for breach.

Security and compliance items to note

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption applied
Certifications: SOC 2 Type II, ISO 27001
Healthcare: HIPAA support with BAA
Regulatory: ESIGN and UETA compliant
Audit Trail: Detailed signing logs included

Step-by-step: Complete a Broker Agreement for signature

Follow these sequential steps to prepare, verify, and complete the Broker Agreement for all parties.

  • 01
    Prepare document: Draft or load the agreement template and confirm required clauses.
  • 02
    Add parties: Enter full legal names and contact emails for each signer.
  • 03
    Place fields: Insert signature, date, initials, and text fields where needed.
  • 04
    Send to sign: Route for signatures and monitor completion with audit trail.

How to configure an online signing workflow

Set up a signing workflow that matches your approval order and authentication needs before sending the agreement.

Signer order Specify sequential or parallel signing based on who must sign first
Authentication method Choose email, SMS code, or stronger verification as required
Conditional fields Show or hide fields based on prior answers
Notifications Enable reminders and completion notices to all parties
Storage location Select secure cloud repository or local export path

Where to send or file the completed agreement

Decide destination and distribution to satisfy business, regulatory, and recordkeeping needs.

  • Client copy: Email signed PDF to client for their records
  • Broker file: Store executed agreement in broker's secure records
  • Compliance team: Send copy to compliance or licensing department
  • Third parties: Provide executed exhibits to counterparties or escrow as required

Technical considerations for eSigning and sharing

Confirm platform features and integrations before sending to ensure compatibility with your systems.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • File formats: PDF, DOCX, HTML supported
  • Authentication: Email, SMS, KBA, SSO

Ensure the chosen solution supports audit trails, secure storage, and any required regulatory attestations to maintain evidentiary value.

Typical timing and deadline considerations

Track effective dates, notice periods, payment timing, and any regulatory filing deadlines that affect the agreement.

Effective Date:

Enter as MM/DD/YYYY; governs when obligations begin

Commission trigger:

Define event that vests payment rights and timing

Notice periods:

Specify days required for termination or cure

Regulatory filings:

Complete any required broker disclosures promptly

Retention window:

Retain records per applicable retention rules

Common mistakes to avoid when preparing a Broker Agreement

  • Using informal or abbreviated party names that do not match corporate or license records can create enforceability issues and payment delays.
  • Failing to specify precise commission calculations, timing, or contingencies leads to disputes over earned amounts and recoveries.
  • Omitting licensing or disclosure clauses required by state regulators risks administrative action and may invalidate parts of the agreement.
  • Relying on unsealed or unsigned exhibits, or failing to attach referenced schedules, undermines contractual clarity and evidence of mutual assent.

Penalties and legal risks for incorrect or incomplete agreements

Regulatory fines: State licensing penalties possible
Contract disputes: Litigation or arbitration exposure
Tax consequences: Incorrect reporting can trigger IRC penalties
Broker liability: Damages for breach or misrepresentation
Recordkeeping breaches: HIPAA or SEC violations where applicable
Enforceability risk: Missing signatures or consent problems

eSignature vendor comparison for completing Broker Agreements

Compare core pricing and capability signals relevant to Broker Agreements; signNow is shown first for parity with common procurement comparisons.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real examples of Broker Agreement use with eSigning

Practical examples show how organizations execute broker relationships remotely and remain compliant.

Optica Ventures (COO)

The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

  • Signed remotely for investor introductions and referral tracking.
  • Using an electronic signing workflow allowed Optica Ventures to reduce turnaround time and keep a verifiable audit trail while ensuring counterparties had clear commission terms.

Martin Properties (Founder)

I can process and execute all of these documents online with 100% compliance and built-in security.

  • Handling leases and listing agreements electronically on mobile.
  • The team closed deals without in-person meetings while maintaining records and meeting state disclosure requirements, improving responsiveness to clients.

Frequently asked questions about Broker Agreements and eSignatures

Answers to common questions about enforceability, notarization, signatory authority, revisions, and record retention.


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