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Brokerage Contract

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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 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 and shall terminate on

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 ,20 .

EMPLOYER

BROKER

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What a Brokerage Contract Is and when it applies

A Brokerage Contract is a written agreement that sets the terms between a broker and a client for brokerage services, commissions, scope of work, and duties. It typically covers listing or selling authority, exclusivity, compensation formula, duration, termination conditions, and dispute resolution. Brokerage Contracts are used across real estate, securities brokerage, and some commercial intermediary arrangements to document obligations and protect both parties. Proper identification of the broker, client, property or asset, and clear payment terms reduces disputes and supports regulatory compliance.

Why a clear Brokerage Contract matters

A well-drafted Brokerage Contract clarifies expectations, reduces miscommunication, and creates enforceable rights for compensation and performance. It provides evidence of consent and can limit exposure from noncompliance or ambiguous terms when disputes or regulatory reviews arise.

Why a clear Brokerage Contract matters

Who typically prepares and signs a Brokerage Contract

Brokers, clients (sellers or buyers), firm compliance officers, and outside counsel frequently prepare or review these agreements before signature.

  • Brokers and agents who represent clients in listings or transactions and need documented authority and commission terms.
  • Individual clients or corporate buyers/sellers who require clarity on scope, fees, and termination rights.
  • In-house or external legal and compliance teams for firms that must meet state licensing and disclosure obligations.

Final signatures should be by authorized representatives; include dates and any witness or notarization steps required by state law.

Core elements every Brokerage Contract should include

These six components form the backbone of enforceable brokerage agreements and make performance expectations and compensation explicit for all parties.

Parties

Full legal names and contact details for broker, brokerage firm, and client; include license numbers where applicable and the broker's business address.

Scope

Clear description of services the broker will provide, territory or property identifiers, and any limitations on authority or delegation.

Compensation

Exact commission structure, calculation method, payment timing, and contingencies for splits, refunds, or joint-broker arrangements.

Term

Effective date, expiration date, renewal conditions, and early termination rights including notice requirements and post-termination obligations.

Disclosures

Required state or federal disclosures, conflict-of-interest statements, and acknowledgements of fiduciary duties or agency relationships.

Dispute Resolution

Governing law, jurisdiction selection, mediation or arbitration clauses, and venue for any litigation or enforcement actions.

Essential data fields to collect in the Brokerage Contract

Broker Name: Legal entity or individual
Client Name: Full legal name
Property / Asset: Street address or asset identifier
Commission Terms: Percentage or flat fee
Effective Date: MM/DD/YYYY
Governing State: Selected jurisdiction

Step-by-step: complete and execute a Brokerage Contract

Follow these four practical steps to prepare, approve, and obtain valid signatures on a Brokerage Contract.

  • 01
    Draft: Populate parties, scope, and compensation fields completely.
  • 02
    Review: Have compliance or counsel verify disclosures and state-specific clauses.
  • 03
    Sign: Collect signatures, dates, and any required witness or notary acknowledgments.
  • 04
    Distribute: Share fully executed copies with all parties and retain in the official records system.

Configure an online signing workflow for a Brokerage Contract

Set up a clear, auditable routing sequence when using an eSignature platform to avoid execution delays.

Field Configuration
Assign Signers Add signer email, role, and signing order where needed.
Authentication Choose email link, SMS code, or stronger ID verification.
Required Fields Mark signatures, dates, and license fields as required.
Post-Sign Routing Auto-send executed copy to parties and upload to records.

Where to send and how to route the completed contract

Decide recipients and retention points before sending to ensure compliance and archival integrity.

  • Client Copy: Email executed PDF to the client for their records.
  • Broker File: Store signed copy in the brokerage's document management system.
  • Accounting: Send commission details to accounting for payment processing.
  • Compliance: Provide copy to compliance or regulatory officer if required.

Digital signing and platform considerations

Use an eSignature provider that supports audit trails, required authentication, and secure storage for brokerage agreements.

  • File Formats: PDF and DOCX accepted
  • Integrations: CRM and accounting connectors
  • Authentication: Email, SMS, or advanced ID checks

Confirm the chosen platform supports ESIGN/UETA compliance, a tamper-evident audit trail, and any industry-specific security such as HIPAA BAA where applicable.

Common timelines and deadlines to track for brokerage engagements

Monitor key dates tied to listing, exclusivity, payments, and tax reporting to avoid missed obligations.

Effective Date Entry:

Date the contract takes effect; impacts notice and performance deadlines.

Term Expiration:

Document the end date for exclusivity and renewal triggers.

Commission Payment Window:

Specify payment timing after closing or escrow release.

Tax Reporting:

Collect W-9 before payment to avoid backup withholding.

Record Retention:

Preserve executed contract per retention policy and law.

Key milestones from engagement to close

Use this sequential view to track milestone events from contract start through final accounting and recordkeeping.

01

Engagement Start

Contract signed and effective; listing or service commences.

02

Marketing / Showing

Active efforts and client updates occur per schedule.

03

Offer & Acceptance

Offers processed and accepted, triggering closing steps.

04

Post-Close Accounting

Commissions paid, 1099 data collected and files stored.

Common mistakes that delay Brokerage Contract execution

  • Using imprecise compensation language that leaves calculation to later interpretation and fuels disputes.
  • Failing to include broker license numbers or firm details, which can create regulatory compliance gaps.
  • Skipping required disclosures or state-specific addenda and triggering consumer protection concerns or penalties.
  • Not setting a clear signing order or authentication level when routing electronically, causing incomplete signings.

Risks and potential penalties to be aware of

Regulatory fines: State real estate commission penalties
Contract disputes: Litigation or arbitration costs
Commission loss: Failure to meet notice or exclusivity rules
Tax withholding: Backup withholding for missing TINs
Invalid signature: Execution defects risk unenforceability
Breach exposure: Damages and reputational harm

Comparing eSignature vendor pricing and key features

This table summarizes starting prices and common capability differences for popular eSignature vendors; signNow is listed first per vendor comparison conventions.

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 No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Brokerage Contracts and eSigning

Answers to common execution, validity, and storage questions to help reduce execution errors and ensure the agreement is enforceable.


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