When must a disclosure be provided?

Provide the disclosure before the client incurs any obligation to pay the fee or before the event that triggers payment. State laws or industry rules may require earlier delivery; when in doubt, deliver at client engagement.

Can the agreement be signed electronically?

Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Confirm the transaction is not an excluded document type and capture intent, consent, attribution, and a retained record.

What happens if names or amounts are incorrect?

Incorrect party names or fee amounts can void the agreement or lead to disputes. Amendments should be documented in writing and re-signed by all parties; maintain version control for auditability.

Is notarization ever required?

Most broker fee disclosures do not require notarization, but specific transactions (deeds, certain court documents) may. Verify state rules for notarization and RON if remote notarization will be used.

How long should I keep executed disclosures?

Retain executed disclosures for at least three years after filing for tax purposes; industry rules may require longer retention (six years for HIPAA, six years for some SEC records). Confirm with counsel.

Who can sign on behalf of a brokerage?

An authorized officer, designated broker, or agent with written authority should sign for the firm. For entities, include capacity and, if needed, a corporate resolution or power of attorney to verify signing authority.

Electronic Signature
Templates
Finance
Broker Fee Disclosure Agreement

Broker Fee Disclosure Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BROKER FEE DISCLOSURE AGREEMENT

Parties and Effective Date

Broker Name: Client Name:

Agreement Date:

Recitals

This Broker Fee Disclosure Agreement (the Agreement) sets forth the terms under which Broker will provide brokerage and advisory services to Client and discloses the compensation to be paid to Broker. Broker and Client acknowledge that this Agreement constitutes a legally binding contract.

Disclosure of Compensation

Broker's compensation will be as follows (select applicable structure and provide amounts):

Fee Structure

Flat fee — Amount:

Percentage of transaction — Rate: Calculated on:

Combination / Other — Describe:

Source and Timing of Payment

The following identifies the source(s) expected to pay Broker's compensation (check all that apply):

Seller / Seller's agent Buyer / Buyer's agent Landlord Tenant

Client (direct payment) Third party — Identify:

When Payment Is Due Late Fee / Interest

Third-Party Compensation and Conflicts

Broker discloses that Broker may receive compensation from parties other than Client in connection with transactions introduced by Broker. Broker will disclose the identity and amount of any third-party compensation promptly upon receipt or when known.

Disclose known third-party compensation

Dual agency or multiple representation creates potential conflicts of interest. Broker must obtain Client's informed written consent prior to representing multiple parties with materially adverse interests in the same transaction.

Client provides informed consent to dual or multiple representation where disclosed and permitted by law.

Retainer, Refunds, and Credits

Retainer / Deposit Refund Policy

Representations, Indemnity and Remedies

Broker represents that it is duly licensed where required and has the authority to perform the services described in this Agreement. Client represents that it has the authority to enter this Agreement.

Indemnification

Termination

This Agreement may be terminated by either party upon written notice to the other. Termination does not affect obligations accrued prior to termination, including the obligation to pay compensation earned by Broker prior to termination or as otherwise specified in this Agreement.

Specific termination provisions or notice period

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the state identified below. Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration or in the courts specified below as elected by the prevailing party where permitted by law.

Governing law (state) Venue for disputes

Notices and Contact Information

Broker Mailing Address Broker Phone Broker Email Client Mailing Address Client Phone Client Email

Miscellaneous

Entire Agreement: This Agreement, together with any written attachments specifically incorporated herein, constitutes the entire agreement between the parties regarding Broker compensation and supersedes prior agreements and understandings, whether written or oral.

Additional terms or special provisions

By signing below, the parties acknowledge receipt of this Broker Fee Disclosure Agreement, represent that the information contained herein is true and correct to the best of their knowledge, and consent to the terms and compensation disclosures set forth above.

Broker Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

What the Broker Fee Disclosure Agreement Is and When It Applies

A Broker Fee Disclosure Agreement documents fees a broker will charge a client for services related to a transaction, listing, or referral. It clarifies fee amounts, who pays, timing of payment, and any conditions that change the fee. Typical uses include real estate listings, loan brokerage, and referral arrangements where state law or industry rules require advance disclosure. The agreement protects both parties by establishing expectations and creating a written record that can be used for reconciliation, regulatory review, or dispute resolution. Use clear monetary terms and dates to avoid ambiguity.

Why a Broker Fee Disclosure Agreement Matters for Transparency and Compliance

A clear fee disclosure reduces disputes by documenting amounts, payer responsibility, and timing; it also supports regulatory compliance when broker conduct or compensation is regulated. Keeping an explicit fee record improves accounting, tax reporting, and client communication.

Who typically completes a Broker Fee Disclosure Agreement

Various professionals prepare or sign broker fee disclosures depending on the industry and transaction type.

Real estate brokers and listing agents who must disclose commissions and referral fees under state real estate statutes and brokerage rules.
Loan originators, mortgage brokers, and financial intermediaries arranging financing or placement fees for borrowers or lenders.
Referral partners and introducers documenting fee splits and payment triggers between firms or independent agents.

Ensure the person completing the form has authority to bind the broker or firm and that the client receives a copy before fee accrual events.

Common signers and their roles

Broker / Agent

A licensed broker or designated agent signs for the brokerage firm. The signer should include role, license number where required, and corporate authority if signing on behalf of a firm to ensure enforceability and regulatory clarity.

Client / Principal

The consumer, seller, buyer, or business client who agrees to the fee terms. The client signature demonstrates consent and helps establish intent under ESIGN and UETA when executed electronically.

Core elements every professional Broker Fee Disclosure Agreement should include

A complete agreement states amounts, triggers, payer, timing, and dispute handling so the contractual and regulatory picture is clear.

Fee Amount

Specify the exact dollar amount or percentage, rounding rules, and whether the fee is a flat, sliding, or contingency amount to avoid later interpretation disputes.

Payment Trigger

Define the event that creates fee liability (closing, referral payment, invoicing date) and whether partial performance or termination affects payment.

Payer Identification

Name the party responsible for payment and indicate whether the fee may be collected from transaction funds, third-party payor, or billed separately.

Calculation Method

Describe how the fee is computed (gross vs. net, inclusion of taxes, deductions for credits or prior payments) with numeric examples when helpful.

Duration and Effective Date

State the effective date, how long the disclosure applies, and whether it survives termination or transfer of the broker assignment.

Dispute and Governing Law

Identify governing state law and dispute resolution mechanism (court jurisdiction or arbitration) to minimize procedural uncertainty.

Security, privacy, and legal frameworks to consider

Encryption: AES-256 at rest

Transport Security: TLS 1.2 / 1.3

Audit Trail: Detailed signature logs

Identity Controls: Multi-factor options

Regulatory Support: ESIGN and UETA compliance

HIPAA Capability: BAA available if required

Step-by-step: how to complete and deliver the disclosure

Follow these steps in order to create a valid, enforceable Broker Fee Disclosure Agreement and ensure the client receives it before fee accrual.

01

Prepare the draft: Enter parties, amount, triggers, and dates.
02

Review compliance: Confirm licensing and state disclosure requirements.
03

Obtain signatures: Have authorized signer sign and date the form.
04

Provide copy: Deliver executed copy to client prior to fee event.

How to configure a digital workflow for the agreement

A simple e-submission workflow reduces errors and creates an auditable record; configure fields and authentication before sending.

Field	Configuration
Signature Field	Required, signer-locked
Date Field	Auto-fill on signature
License Number	Optional but recommended
Auth Method	Email + SMS code

Where to file or send the completed Broker Fee Disclosure Agreement

After execution, route copies to all parties and retain a central copy for compliance and accounting.

Client copy: Provide signed PDF to the client immediately.
Broker records: Store in firm repository for retention and audits.
Escrow/Closing: Attach to closing package when fee depends on closing.
Regulatory filings: Submit to oversight bodies if required by state rule.

Digital delivery and e-signature considerations

Choose a platform that supports secure signatures, audit trails, and required authentication methods for regulated transactions.

File formats: PDF and DOCX supported
Integrations: CRM and storage connectors
Authentication: Email, SMS, or KBA

Ensure the platform complies with ESIGN and UETA, offers durable audit logs, and can produce a reproducible record for legal and tax purposes.

Timing and delivery expectations for fee disclosure and retention

Timely delivery depends on transaction type and state rules; deliver disclosures well before the fee-trigger event to establish consent.

Provide before listing:

Deliver disclosure to seller prior to or at listing agreement execution.

Provide before closing:

If fee triggers at closing, send executed disclosure before closing date.

Record retention:

Keep executed copies for minimum retention periods.

Amendments:

Deliver any fee changes with client consent before new trigger events.

Tax reporting:

Retain records needed for IRS information returns and backup withholding obligations.

Common risks and consequences of incorrect or missing disclosures

Regulatory fines: State licensing sanctions possible

Contract rescission: Client may seek rescission or refund

Civil liability: Breach claims or damages exposure

Tax penalties: Backup withholding or IRS penalties

Reputational harm: Loss of trust and referrals

Payment disputes: Delays or litigation over fees

eSignature vendor comparison for executing Broker Fee Disclosure Agreements

Platforms vary by price, bulk-send capability, audit trail detail, and HIPAA support. The table below gives a concise feature and starting-price comparison; confirm plan details with each vendor.

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

Frequently asked questions about Broker Fee Disclosure Agreements

Answers to common practical and legal questions to help you avoid errors and ensure enforceability when preparing or signing a broker fee disclosure.

Need help? Contact support

When must a disclosure be provided?
Provide the disclosure before the client incurs any obligation to pay the fee or before the event that triggers payment. State laws or industry rules may require earlier delivery; when in doubt, deliver at client engagement.
Can the agreement be signed electronically?
Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Confirm the transaction is not an excluded document type and capture intent, consent, attribution, and a retained record.
What happens if names or amounts are incorrect?
Incorrect party names or fee amounts can void the agreement or lead to disputes. Amendments should be documented in writing and re-signed by all parties; maintain version control for auditability.
Is notarization ever required?
Most broker fee disclosures do not require notarization, but specific transactions (deeds, certain court documents) may. Verify state rules for notarization and RON if remote notarization will be used.
How long should I keep executed disclosures?
Retain executed disclosures for at least three years after filing for tax purposes; industry rules may require longer retention (six years for HIPAA, six years for some SEC records). Confirm with counsel.
Who can sign on behalf of a brokerage?
An authorized officer, designated broker, or agent with written authority should sign for the firm. For entities, include capacity and, if needed, a corporate resolution or power of attorney to verify signing authority.

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