Is a broker disclosure legally required?

Many states require written agency disclosures; requirements vary by jurisdiction and may include mandatory wording or timing. Check the state real estate commission for exact obligations and ensure the disclosure matches statutory language.

Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted, provided there is intent to sign, consent to electronic records, proper attribution, and durable record retention.

What happens if names or dates are incorrect?

Errors can undermine enforceability or delay closing. Correct via an amendment signed by all parties or re-execution of a corrected disclosure to create an unambiguous record.

Do disclosures require notarization or witnesses?

Most broker disclosures do not require notarization or witnesses, but state-specific exceptions exist. Confirm with your state regulator if notarization or witness attestations are required.

Who must receive a copy of the signed disclosure?

Each party to the transaction should receive a signed copy, and the brokerage should retain the master signed document in its transaction file for the mandated retention period.

How do I amend a completed disclosure?

Create a written amendment signed and dated by all original parties, or execute a new disclosure that expressly supersedes the prior version to avoid ambiguity.

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Broker Disclosure Agreement

Broker Disclosure Agreement

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BROKER DISCLOSURE AGREEMENT

This Broker Disclosure Agreement (the Agreement) is entered into by the parties identified below on the Effective Date set forth herein for the purpose of disclosing broker relationships, compensation, conflicts, and duties in connection with the engagement described herein.

PARTIES

Broker Name Broker License Number Broker Address Client Name Client Address

WHEREAS

WHEREAS, Broker is duly licensed and authorized to provide brokerage services, and Broker represents that Broker will act in accordance with applicable licensing statutes and duties of care and disclosure; and

WHEREAS, Client desires to engage Broker to provide the brokerage services described in this Agreement and to receive full disclosure of any material conflicts, compensation arrangements, and agency relationships; and

WHEREAS, the parties wish to set forth in writing the nature of Broker's duties, the scope of engagement, compensation, and disclosures required by law and by the parties' agreement.

SCOPE OF WORK

Broker shall perform the brokerage services expressly described below. Broker's obligations do not include legal, tax, or appraisal services unless separately retained in writing.

Describe scope of services

DISCLOSURES

1. Compensation Disclosure: Broker may receive fees, commissions, referral payments, or other compensation from third parties. Broker discloses that the following compensation arrangement applies:

Commission / Fee

2. Dual or Multiple Representation: Broker may act as an agent for more than one party if permitted and if all affected parties provide informed written consent.

Client consents to potential dual or multiple representation

3. Conflicts of Interest: Broker shall disclose any material conflicts of interest known at the time of engagement or that arise during the engagement.

Known conflicts or additional disclosures

PAYMENT TERMS

Client agrees to compensate Broker in accordance with the terms below. Unless otherwise specified, amounts are due as invoiced and payable in USD.

Payment Amount Payment Schedule / Due Dates Late Fee

TERM AND TERMINATION

This Agreement shall commence on the Start Date and, unless earlier terminated in accordance with this section, shall continue until the End Date or until the services described in the Scope of Work are complete.

Start Date: End Date:

Termination Notice Period

Either party may terminate this Agreement for material breach if the breach remains uncured for the notice period set forth above. Termination does not relieve Client of obligations to pay for services performed or expenses incurred prior to termination.

CONFIDENTIALITY

1. Definition: Confidential Information means non-public information disclosed by one party to the other that is designated confidential or that a reasonable person would understand to be confidential under the circumstances.

2. Obligations: Receiving party shall (a) use Confidential Information solely to perform obligations under this Agreement; (b) protect Confidential Information with at least the same degree of care as it protects its own confidential materials but no less than reasonable care; and (c) not disclose Confidential Information to any third party except as required by law or with prior written consent.

3. Exceptions: Confidential Information does not include information that is or becomes publicly available through no breach of this Agreement, is rightfully received from a third party without restriction, or is independently developed without use of the disclosing party’s Confidential Information.

4. Equitable Relief: Parties acknowledge that breach of confidentiality may cause irreparable harm for which monetary damages are inadequate and that injunctive relief may be sought in addition to other remedies.

ADDITIONAL TERMS

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state specified below without regard to conflict of law principles.

Governing State

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. Any amendment must be in writing and signed by both parties.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

CERTIFICATIONS AND ACKNOWLEDGMENTS

By signing below, each party certifies that they have the authority to enter into this Agreement, that they have read and understand the disclosures contained herein, and that they consent to the terms and conditions set forth above.

Client acknowledges receipt of all disclosures required by this Agreement

SIGNATURES

Broker:

By:

Date:

Client:

By:

Date:

What a Broker Disclosure Agreement Is and when it applies

A Broker Disclosure Agreement is a written statement that clarifies the relationships, duties, and compensation arrangements between a broker and the parties to a real estate or financial transaction. It identifies who the broker represents, any conflicts of interest, material facts known to the broker, and compensation terms. The form is typically completed at listing, at first substantial contact with a prospective buyer or seller, or prior to signing a purchase contract. Properly executed disclosures reduce misunderstandings, support compliance with state licensing rules, and form part of the transactional record.

Why the Broker Disclosure Agreement matters for risk and transparency

The agreement documents agency relationships, compensation, and known material facts so consumers understand who represents their interests. It promotes regulatory compliance with state real estate commissions and preserves evidence should disputes arise.

Typical parties who prepare or receive this agreement

Parties who commonly complete or review a Broker Disclosure Agreement include real estate brokers, buyer and seller clients, and closing or title agents.

Listing brokers and their supervising brokerages who must disclose agency and compensation to sellers.
Buyers and buyer's agents who receive agency disclosures early in the buying process.
Title agents, lenders, and attorneys who rely on accurate disclosures during closing and underwriting.

Accurate completion by each signatory protects consumer rights and reduces regulator or contract disputes after closing.

Primary signer roles

Listing Broker

The licensed real estate professional or brokerage representing the seller. The Listing Broker must disclose agency scope, compensation arrangement, any dual agency or designated agency structures, and license identification where required by state law.

Buyer or Buyer Agent

The purchaser or the buyer's agent who acknowledges receipt of the disclosure. The buyer's signature confirms awareness of who represents whom and any known material facts, and it helps establish timing for statutory notice obligations.

Essential contents of a professionally drafted Broker Disclosure Agreement

A complete agreement combines identity, agency statements, property details, compensation, material facts, and signature blocks so the document functions as a clear record for all parties.

Parties

Full legal names of broker(s), brokerage firm, seller, and buyer, including license numbers where state rules require identification.

Property

Street address and legal description or parcel identifier so the disclosure unambiguously references the specific transaction.

Agency Statement

Clear statement of who the broker represents (seller, buyer, dual/limited), plus duties owed and any conflict of interest.

Compensation

Description of fees, commissions, and who pays them — dollar amounts or percentage rates and timing of payment.

Material Facts

Known facts about the property or transaction that the broker must disclose under state law or ethics rules.

Signatures

Signature, printed name, license number (if required), and date fields for each party and for the broker's supervising broker if applicable.

Step-by-step: completing and executing the disclosure

Follow these sequential steps to complete, verify, and record a Broker Disclosure Agreement correctly.

01

Prepare document: Populate parties, property, agency, and compensation fields accurately.
02

Review with client: Explain agency duties and have client initial key sections where required.
03

Obtain signatures: Secure signatures from all parties and record the execution date.
04

Store copy: Provide signed copies to parties and retain the master record per retention rules.

Where to send or file the completed agreement

After execution, distribute and file the agreement to the appropriate recipients and systems to ensure accessibility and compliance.

Seller and Buyer: Provide each party a signed copy immediately to document consent and timing.
Brokerage Records: Store the original in the brokerage file or transaction management system as mandated by state licensing rules.
Title / Escrow: Send a copy to the closing agent or title company for underwriting and closing logistics.
Regulatory Audit: Retain for regulator or compliance audits according to state and federal retention timelines.

Configuring an eSigning workflow for this agreement

Set up a digital workflow that enforces sign order, stores signed copies, and authenticates signers before sending.

Field	Configuration
Signing Order	Set sequential signer order: broker → seller → buyer
Authentication	Use email link or SMS code; add ID verification for higher assurance
Notifications	Enable reminders and completion notices to all parties
Storage	Save signed PDF with audit trail in a secure repository

Digital signing and technical requirements

Use an eSignature platform that supports legal admissibility, secure storage, and an audit trail suitable for regulatory review.

Document formats: PDF or DOCX with fixed-page appearance
Authentication options: Email link, SMS code, or advanced ID proofing when required
Audit trail: Timestamps, IP addresses, and signer actions retained

Ensure the chosen platform meets any industry requirements (for example, HIPAA BAA when health data is present) and retains records according to applicable statutes.

Required information fields checklist

Broker Name: Full trading name

License Number: State license ID

Brokerage Firm: Legal entity name

Party Names: Seller and buyer full names

Property Address: Street, city, state, ZIP

Signature Date: MM/DD/YYYY

Common mistakes to avoid when preparing disclosures

Using initials instead of full signatures when the form requires full signatures, which can cause enforceability questions.
Failing to include the exact property legal description, leading to ambiguity about which transaction the disclosure covers.
Leaving compensation terms vague or unsigned, which can spark commission disputes or contract rescission claims.
Not retaining the executed copy in the brokerage transaction file, creating problems during audits or post-closing claims.

Potential consequences of incorrect or missing disclosures

Regulatory fines: State licensing penalties

Disciplinary action: License suspension or censure

Contract risks: Rescission or voidable contract claims

Civil liability: Damages for misrepresentation

Commission disputes: Payment delays or litigation

Operational delays: Closing postponements

Timing rules and typical deadlines for delivering disclosures

Deliver disclosures early in the relationship and well before any binding transaction step to satisfy notice and consent expectations.

At first substantive contact:

Provide agency disclosure at the first meaningful meeting or communication

Before listing agreement:

Present and obtain seller acknowledgment prior to signing listing contracts

Before buyer representation:

Give buyer disclosures before material advice or showing fiduciary relationships

Prior to contract execution:

Ensure both parties have copies before signing purchase agreements

Retention start:

Record retention begins on the execution date for audit timelines

Key milestones in the disclosure lifecycle

This sequence shows typical milestone stages from initial contact through post-closing recordkeeping.

01

Initial Contact

Provide agency disclosure and document initial client understanding.

02

Agreement Execution

Obtain signatures and date the Broker Disclosure Agreement.

03

Transaction Closing

Confirm disclosures are included in closing package and title documents.

04

Record Retention

Store the executed agreement and audit trail for the required retention period.

Comparing eSignature vendors for Broker Disclosure Agreements

Vendor features and pricing influence which platform meets your compliance, volume, and integration needs. signNow is shown first for comparison.

	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 free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions for Broker Disclosure Agreements

Answers to common questions about timing, enforceability, electronic execution, and recordkeeping for broker disclosures.

Need help? Contact support

Is a broker disclosure legally required?
Many states require written agency disclosures; requirements vary by jurisdiction and may include mandatory wording or timing. Check the state real estate commission for exact obligations and ensure the disclosure matches statutory language.
Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA where adopted, provided there is intent to sign, consent to electronic records, proper attribution, and durable record retention.
What happens if names or dates are incorrect?
Errors can undermine enforceability or delay closing. Correct via an amendment signed by all parties or re-execution of a corrected disclosure to create an unambiguous record.
Do disclosures require notarization or witnesses?
Most broker disclosures do not require notarization or witnesses, but state-specific exceptions exist. Confirm with your state regulator if notarization or witness attestations are required.
Who must receive a copy of the signed disclosure?
Each party to the transaction should receive a signed copy, and the brokerage should retain the master signed document in its transaction file for the mandated retention period.
How do I amend a completed disclosure?
Create a written amendment signed and dated by all original parties, or execute a new disclosure that expressly supersedes the prior version to avoid ambiguity.

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