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Broker Fee Disclosure Form

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Broker Fee Disclosure Form

Parties and Transaction

Broker Name:

Transaction Type:

Effective Date of this Disclosure:

Broker Compensation

The Broker will be compensated as follows. Check applicable items and complete amounts or percentages where required.

Proposed Sale Price:   Commission Rate:   Estimated Commission Amount:

Who is responsible for payment of the Broker Fee:

Timing of Payment:

Conditions and Contingencies

The Broker's right to compensation is contingent upon the following applicable conditions (check all that apply):





Referral Fees and Other Payments

Broker discloses the following third-party payments, referral fees, or splits that relate to this transaction. If none, write "None" in the space below.

Conflicts of Interest and Dual Representation

Broker must disclose any material relationships that may create a conflict of interest, including affiliations with purchasers, sellers, lenders, or third parties. The Broker hereby discloses:

Client expressly consents to (check applicable):

Taxes, Disbursements and Payment Instructions

Unless otherwise agreed in writing, fees disclosed herein do not include any taxes, assessments, or third-party disbursements related to the transaction. Client agrees that such amounts are the responsibility of the payer identified above unless otherwise stated.

Authorization and Acknowledgment

By signing below, the parties acknowledge receipt of this Broker Fee Disclosure Form, confirm that the information set forth herein is true and complete to the best of their knowledge, and agree that the Broker is authorized to receive the disclosed compensation in accordance with the terms above. Client acknowledges that Broker has disclosed all known material relationships and compensation arrangements related to the transaction.

Governing Law: This Disclosure and any claim arising out of it will be governed by the laws of the jurisdiction where the primary asset or property is located, without regard to conflicts of law principles.

Certifications

Broker certifies that all compensation arrangements known at the time of this disclosure have been stated. Broker further certifies that Broker is properly licensed or registered to perform the services indicated in the relevant jurisdiction.

Client acknowledges receipt of this disclosure and understands the compensation described herein. Client understands that this disclosure does not modify any separate listing, brokerage or engagement agreement except where expressly stated in writing.

Broker Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

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What the Broker Fee Disclosure Form Is and When it Applies

The Broker Fee Disclosure Form documents fees, commission splits, and payment terms that a broker charges or expects to receive in a transaction. It identifies the broker, client(s), transaction type, precise dollar amounts or percentages, payment timing, and any conditions that affect payment. In the United States this disclosure is commonly used in real estate and financial brokerage transactions to ensure transparency and to reduce disputes; electronic execution is permitted under ESIGN (15 U.S.C. ch. 96) and state UETA statutes when the parties consent and the record is retained.

Why a Clear Broker Fee Disclosure Matters

A complete disclosure reduces legal risk, prevents commission disputes, and creates a record that supports enforcement. It helps parties understand who pays, how much, when, and under what conditions, which speeds closings and supports regulatory compliance.

Why a Clear Broker Fee Disclosure Matters

Who Typically Completes and Signs this Form

The Broker Fee Disclosure Form is used by brokers, agents, firms, and their clients to record fee arrangements and payment conditions before or during a transaction.

  • Licensed brokers and agents confirming commission splits and client compensation responsibilities.
  • Buyers or sellers who must acknowledge broker compensation and any dual-agency fee sharing.
  • Brokerage compliance teams or legal counsel preparing standardized disclosures for multiple transactions.

Use this form whenever commission or broker fee allocation is material to a deal, or when state law or industry rules require written disclosure.

Typical Signatories and Their Roles

Listing Broker

The listing broker signs to confirm the fee being offered or charged, the effective date, and any conditions affecting payment; the broker’s license number and firm information should match state registration to avoid compliance issues.

Client / Principal

The buyer or seller (or other client) signs to acknowledge receipt of the fee disclosure and consent to the stated payment terms; an unsigned or undated disclosure can create enforceability and escrow release problems.

Step-by-Step: Completing the Broker Fee Disclosure

Follow these four steps to fill, review, sign, and file the disclosure correctly.

  • 01
    Prepare the form: Enter broker and client details and the exact fee language.
  • 02
    Confirm payment terms: Specify timing, conditions, and any split or override arrangements.
  • 03
    Collect signatures: Have all parties sign and date using the chosen execution method.
  • 04
    Store and distribute: Send copies to escrow, compliance, and retain the original per retention rules.

How to Configure an Online Disclosure Workflow

Set up a digital workflow so disclosures are routed, authenticated, and archived without manual handoffs.

Field Configuration
Authentication Email link or SMS code; use stronger ID verification for higher-risk deals
Conditional Fields Show fee-split fields only when multiple brokers are listed
Reminders Automatic reminders at specified intervals before deadlines
Integrations Connect to CRM, escrow, or cloud storage for automatic archiving

Where to Send and How the Form Moves Through a Transaction

Typical routing ensures all affected parties, escrow, and compliance teams receive a signed copy promptly.

  • Upload: Add the completed form to the transaction record or CRM.
  • Assign fields: Place signature, date, and conditional fee fields for each party.
  • Send to signers: Route via email link or secure portal with authentication.
  • Archive: Save a signed PDF and audit trail in the document repository.

Digital Signing and eSubmission Requirements

Electronic execution is permitted under ESIGN and UETA when parties consent and the record can be retained and reproduced.

  • Authentication: Email, SMS, or stronger KBA per risk level
  • Audit Trail: Timestamps, IP, and signer actions
  • Integrations: CRM, escrow, cloud storage connectors

Core Components Every Professional Disclosure Should Include

A consistent structure improves clarity and reduces the need for follow-up. Include the following six elements in every Broker Fee Disclosure Form.

Fee Description

A precise explanation of the fee type (commission, flat fee, referral) and how it is calculated, including basis points or percent and any caps or minimums.

Effective Date

The date the fee arrangement begins and any expiration or review dates that change the broker’s entitlement to payment under specified conditions.

Payor and Payee

Clearly identify who pays and who receives the fee, including full legal names and, if relevant, the firm or trust account details for disbursement.

Conditions

List events that trigger or void payment (closing, termination for cause, contingency failure), and describe prorations or refunds when applicable.

License Details

Include broker license number, state of issuance, and firm NMLS/DBA identifiers when industry rules or state law require them.

Signature Blocks

Space for printed name, role, signature, and date for each party; include witness or notary fields where law requires.

Required Information: Minimum Fields to Capture

Broker Name: Legal name
License Number: State-issued ID
Fee Amount: Exact $ or %
Payment Terms: Timing and method
Client Name: Full legal name
Signatures: Signed and dated

Common Mistakes to Avoid When Preparing the Disclosure

  • Using vague language like 'market rate' or 'usual commission' rather than a precise dollar amount or percentage, which leads to disputes.
  • Omitting broker license or firm details, complicating regulator verifications and delaying escrow or closing processes.
  • Failing to collect all required signatures or dates; unsigned disclosures can be unenforceable and may delay payments.
  • Neglecting to state conditions that cancel or reduce fees, such as termination, no-sale scenarios, or contingency failures.

Penalties and Risks of an Incorrect or Missing Disclosure

Civil Liability: Damages and attorney fees possible
Commission Disputes: Unclear entitlement delays payment
State Penalties: Regulator fines or sanctions
Unenforceable Fee: Court may refuse collection
Regulatory Investigation: Triggers audits or compliance reviews
Delayed Closing: Escrow holds and extra costs

Practical Examples of the Broker Fee Disclosure in Use

Two compact examples show how disclosures resolve questions about who pays and when.

Real Estate Transaction

Agent documents fee before listing launch, clarifying buyer/seller responsibilities

  • Fee shared when sale closes, unless buyer cancels
  • The disclosure prevented a post-closing commission dispute by recording the agreed split and payment timing, which escrow used to release funds.

Financial Advisory

Advisor provides disclosure at engagement start, listing percentage-based advisory fee

  • Fee calculated quarterly from assets under management
  • Having an upfront written disclosure reduced client inquiries and ensured consistent billing across accounts.

Practical Tips for Accurate, Efficient Completion

Follow these best practices to reduce errors and speed processing across transactions.

Use precise monetary language
Specify dollars or percentages and include rounding rules. Avoid ambiguous phrases like 'subject to adjustment' without defined metrics.
Match legal names and license info
Verify names and license numbers against state registries before signing to prevent verification failures.
Capture consent for e-signing
Document each party’s consent to execute electronically to satisfy ESIGN and state UETA requirements.
Keep a clear audit trail
Retain signed PDFs, timestamps, IP logs, and any authentication records to support enforceability and audits.

Timing: When to Provide and Record the Disclosure

Provide disclosures at points that reduce downstream risk; the list below summarizes common timing expectations.

At Engagement:

Provide the disclosure when the broker-client relationship is created or the listing agreement is signed

Before Execution:

Give all parties the disclosure before they sign related transaction documents

At Closing:

Confirm the final fee amounts for escrow and disbursement at closing

Record Retention:

File signed copies with transaction records and compliance files promptly

Respond to Inquiries:

Provide a signed copy to regulators or other parties within reasonable request periods (commonly 10 business days)

Key Milestones and Processing Stages

Track the disclosure through drafting, review, signature, and archiving to ensure completion and enforceability.

01

Drafting

Prepare precise fee language and include license identifiers

02

Internal Review

Compliance or legal reviews terms and alignment with policy

03

Execution

All parties sign and date the disclosure using chosen method

04

Archival

Store signed record with audit trail in secure repository

eSignature Vendor Pricing and Feature Snapshot

Compare basic pricing and essential capabilities for signing and delivering Broker Fee Disclosures; signNow is listed first per platform 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 free trial Varies Varies Varies Varies
Bulk Send Yes (plan-dependent) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions and Troubleshooting

Answers to common questions about completing, signing, and storing Broker Fee Disclosure Forms in U.S. transactions.


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