Can this agreement be e-signed?

Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA. Confirm industry-specific exceptions such as certain court filings and testamentary documents.

Is consumer consent required for e-delivery?

For consumer-facing financial or health records, ESIGN requires a clear disclosure and affirmative consent to receive records electronically (15 U.S.C. §7001(c)). Retain proof the consumer could access the electronic format.

When is notarization required?

Brokerage disclosures themselves typically do not require notarization. Notarization needs depend on state law and related instruments (deeds, powers of attorney), so verify local requirements before notarizing.

How should records be stored?

Store signed agreements and the audit trail in encrypted, access-controlled systems. Preserve reproductions that accurately reflect the signed record and metadata needed for authentication.

What if a party's name is incorrect?

Correct mismatched names via an executed amendment or corrected agreement. Maintain a clear chain of correction to avoid attribution disputes and potential regulatory questions.

How long must I keep signed disclosures?

Retain signed Brokerage Disclosure Agreements for the duration recommended by regulators and industry practice: generally a minimum of three years, with longer retention for tax, real estate, or healthcare-related records.

Electronic Signature
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Legal
Brokerage Disclosure Agreement

Brokerage Disclosure Agreement

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Brokerage Disclosure Agreement

This Brokerage Disclosure Agreement ("Agreement") is made effective as of Effective Date: , by and between Broker Name: License Number: with principal place of business at (hereinafter "Broker"), and Client Name: with address at (hereinafter "Client"). Broker and Client may be referred to collectively as the "Parties."

Recitals

WHEREAS, Broker is duly licensed to provide brokerage services in the relevant jurisdiction and has represented to Client that Broker has the qualifications, skill and experience to act as a broker in connection with transactions described herein; and

WHEREAS, Client desires to engage Broker to provide brokerage services for the marketing, procurement, negotiation, or sale of the property, asset, or transaction identified in this Agreement, and Broker desires to furnish such services on the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties intend by this Agreement to disclose the nature of the agency relationship, the method of compensation, and other material matters that affect the brokerage relationship.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:

1. Definitions

1.1 "Services" means the brokerage services described in Section 2, including marketing, negotiation, and introductions to potential counterparties. 1.2 "Transaction" means any sale, lease, purchase or financing of the asset or property identified by Client and contemplated by this Agreement. 1.3 "Confidential Information" means all non-public information disclosed by one Party to the other in connection with this Agreement, but excludes information that is or becomes publicly known through no breach of this Agreement.

2. Scope of Brokerage Services

Broker shall provide the following Services to Client: marketing the Transaction, soliciting potential counterparties, preparing or reviewing transaction documentation to the extent agreed in writing, and advising Client with respect to negotiation strategy. Broker's Services do not include legal, tax or accounting advice unless otherwise agreed in writing by the Parties.

Describe specific services (if any):

3. Broker Duties and Disclosures

Broker shall perform the Services with reasonable skill, care and diligence in accordance with industry standards and applicable law. Broker shall promptly disclose to Client all material information known to Broker that could reasonably affect Client's decision with respect to a Transaction. Broker shall obtain Client's informed consent in writing prior to acting in any capacity that creates a material conflict of interest.

4. Agency Relationship

Broker's agency status for each Transaction shall be as indicated below. Client should review and confirm the selection(s).

Transaction Broker (no fiduciary duties beyond statutory obligations)
Seller's Agent
Buyer's Agent
Dual Agent (Broker represents both Buyer and Seller; dual agency requires informed written consent)

5. Compensation

Client shall pay Broker compensation as follows. Unless otherwise agreed in writing, compensation shall be earned when Broker procures a ready, willing and able counterparty on terms acceptable to Client, or when a Transaction closes.

Commission or Fee (amount or percentage): Payment terms and timing:

6. Confidentiality

Each Party shall keep Confidential Information strictly confidential and shall not disclose such information to any third party except to its employees, agents, legal advisors, accountants, or as required by law. The receiving Party shall use Confidential Information only for purposes of performing under this Agreement. The obligations of confidentiality do not apply to information that is or becomes public through no fault of the receiving Party or that is independently developed by the receiving Party without use of the disclosing Party's Confidential Information.

7. Conflicts of Interest

Broker shall disclose any material existing or potential conflict of interest promptly in writing. If Broker proposes to act as a dual agent, Broker must obtain Client's written informed consent describing the nature of the conflict and the potential effects on Client's interests.

8. Term and Termination

This Agreement shall commence on the Effective Date and shall continue until the earlier of: (a) completion of the Services; (b) termination by either Party upon thirty (30) days' prior written notice; or (c) termination as otherwise provided herein. Termination shall not relieve Client's obligation to pay compensation earned prior to termination nor affect the survival of provisions that by their nature are intended to survive.

9. Representations and Warranties

Each Party represents and warrants that it has the power and authority to enter into this Agreement and to perform its obligations hereunder, and that execution and delivery of this Agreement has been duly authorized by all necessary corporate or other action.

10. Indemnification

Client shall indemnify, defend and hold harmless Broker and its affiliates, officers, directors and employees from and against any claims, losses, liabilities, damages, costs and expenses (including reasonable attorneys' fees) arising out of Client's breach of this Agreement or Client's negligent or willful acts or omissions in connection with a Transaction, except to the extent such claims arise from Broker's gross negligence or willful misconduct.

11. Limitation of Liability

Except for liability resulting from gross negligence or willful misconduct, neither Party shall be liable to the other for consequential, incidental, special, or punitive damages, and total liability in contract, tort or otherwise shall not exceed the amounts of compensation actually paid to Broker under this Agreement in the twelve (12) months preceding the claim.

12. Notices

All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and shall be given to the addresses below (or such other address as a Party may designate by notice).

Broker Notice Address: Client Notice Address:

13. Amendments; Waiver

No amendment or modification of this Agreement shall be effective unless in writing and signed by both Parties. No failure or delay by either Party in exercising any right under this Agreement shall constitute a waiver of that right, and no single or partial exercise shall preclude further exercise.

14. Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding.

15. Governing Law

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

Governing law state:

16. Entire Agreement; Severability

This Agreement, together with any exhibits or written fee agreements referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior oral or written agreements. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

17. Miscellaneous

The Parties acknowledge that Broker is not providing legal, tax or accounting advice by virtue of this Agreement. Client is advised to obtain independent legal and tax counsel when appropriate. Headings in this Agreement are for convenience only and shall not affect interpretation.

Additional notes or special terms:

Broker (Print Name):

By:

Date:

Client (Print Name):

By:

Date:

What a Brokerage Disclosure Agreement Covers

A Brokerage Disclosure Agreement is a written record that explains the relationship, duties, compensation, and conflict-of-interest disclosures between a broker and a client in a real estate or financial transaction. It identifies the brokerage firm and licensee, states whether the broker is representing a buyer, seller, both (dual agency where permitted), or acting as a transaction broker, and discloses how commissions and referral fees will be handled. The agreement creates expectations about confidentiality, agency duties, and the scope of services, and when signed it becomes part of the contractual record for the transaction.

Why clear brokerage disclosures matter

Clear, timely disclosure reduces legal exposure, helps manage client expectations, and supports regulatory compliance. Accurate disclosures protect brokers from licensing complaints and consumers from undisclosed conflicts while creating an auditable record for disputes or regulatory reviews.

Who prepares and receives this agreement

All parties should retain a signed copy as part of the transaction file; many states treat the disclosure as a required pre-contract or first-contact record.

Real estate brokers and licensed agents who will provide listing or buyer representation.
Broker-dealer representatives and compliance officers in residential or commercial brokerage firms.
Consumers (buyers, sellers, tenants) who must acknowledge agency and compensation terms.

Common signer roles and responsibilities

Listing Broker

The licensed broker or agent representing the seller; responsible for disclosing agency status, commission terms, and any material conflicts. The listing broker typically completes the disclosure before marketing property or executing a listing agreement and must retain documentation for regulatory review.

Buyer Agent

The broker representing the buyer; must disclose agency status and compensation arrangements to the buyer and to any other parties as required by state law. Buyer agents should ensure the buyer signs and receives a copy prior to offer submission.

Essential elements to include in the agreement

A professional Brokerage Disclosure Agreement bundles identity, agency type, compensation, material conflicts, privacy expectations, and signature blocks into a single document to ensure clarity for all parties.

Parties

Full legal names for broker, licensee, and client; business name if applicable; license numbers and broker contact information.

Agency Type

Clear statement of whether the broker will act as seller's agent, buyer's agent, dual agent (where allowed), or transaction broker and the duties associated with each role.

Compensation

Commission structure, who pays, referral fees, and circumstances that might change payment (e.g., buyer default or transaction termination).

Conflicts and Disclosures

Any material relationships, prior interests in the property, business affiliations, or incentives that could influence advice or negotiation.

Privacy & Recordkeeping

Statement on how client data will be used and retained, and whether a HIPAA or other privacy addendum applies for health-related transactions.

Signatures

Signature and date fields for all parties and a place to note delivery method (in-person, email, e-signature) and acknowledgement of receipt.

Key fields commonly required

Broker Name: Full legal name

License Number: State license ID

Client Name: Full legal name

Property Address: Street, city, state, ZIP

Agency Type: Buyer / Seller / Dual

Effective Date: MM/DD/YYYY

Consequences of incomplete or incorrect disclosures

License Sanctions: Fines or disciplinary action

Contract Voidance: Potential contract challenges

Civil Liability: Damages or indemnity claims

Regulatory Fines: State agency penalties

Tax Withholding: Backup withholding risk

Reputational Harm: Client trust erosion

Frequent errors to avoid

Failing to disclose dual agency or compensation splits before negotiations begin, which can create disputes and licensing complaints.
Using inconsistent party names or incorrect license numbers that prevent reliable attribution of the agreement to a signer.
Not retaining a signed copy in the transaction file or failing to record delivery method and date for audit purposes.
Applying an incorrect governing state or jurisdiction clause that conflicts with local brokerage rules and consumer protections.

How to complete a Brokerage Disclosure Agreement — step by step

Follow these sequential steps to create a clear, enforceable disclosure and keep an auditable record.

01

Collect Parties: Record full legal names and license numbers
02

Choose Agency: Select buyer, seller, dual, or transaction broker
03

Detail Compensation: Specify commission splits and referral fees
04

Sign and Date: Obtain signatures and note delivery method

Configuring an online workflow for the agreement

Set up a simple e-sign workflow to collect signatures, preserve audit trails, and store the final agreement.

Field	Configuration
Signature Method	Email-based eSign with optional SMS code
Authentication	Email + SMS OTP or KBA for higher risk transactions
Conditional Logic	Show dual-agency wording only when selected
Retention	Store signed PDF and audit trail for regulatory period

Where the signed agreement should go and who gets copies

A clear routing plan ensures all parties receive the record and the brokerage retains a compliant copy.

To Client: Deliver signed copy to buyer or seller immediately
Broker File: Store original in broker transaction file
MLS / Transaction Platform: Attach when required by listing service rules
Compliance Team: Provide copy for internal audits and regulatory requests

Requirements for digital signing and storage

Maintain platform logs and audit trails to demonstrate intent, attribution, and retention for regulatory compliance.

File formats: PDF and DOCX support
Integrations: Connects to Salesforce, NetSuite, Microsoft 365
Security: TLS 1.2/1.3 and AES-256 at rest

Timing and typical delivery expectations

Timing requirements vary by state and transaction type; use these common timing checkpoints.

At First Contact:

Provide disclosure at the first substantive engagement

Before Offers:

Deliver disclosure prior to offer submission when practical

At Listing:

Include signed disclosure in the listing package

Retention Start:

Retention period generally begins on execution date

Regulatory Requests:

Provide files promptly on agency request

eSignature vendor comparison for Brokerage Disclosure workflows

Pricing and feature availability can affect total cost of ownership for high-volume brokerage workflows. signNow is listed 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	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical examples of common use cases

Real-world scenarios illustrate how disclosures are used and stored in practice.

Residential Listing

A listing broker provides the disclosure at the listing appointment

Dual agency not applicable
The signed disclosure is attached to the MLS listing and retained in the broker's file for seven years for audit readiness.

Buyer Representation

A buyer agent sends the disclosure before submitting an offer

Compensation split disclosed
The buyer signs electronically, receives a PDF, and the broker stores the audit trail for compliance.

FAQs and troubleshooting

Answers to common questions about using, signing, and storing Brokerage Disclosure Agreements.

Need help? Contact support

Can this agreement be e-signed?
Yes. Electronic signatures are legally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA. Confirm industry-specific exceptions such as certain court filings and testamentary documents.
Is consumer consent required for e-delivery?
For consumer-facing financial or health records, ESIGN requires a clear disclosure and affirmative consent to receive records electronically (15 U.S.C. §7001(c)). Retain proof the consumer could access the electronic format.
When is notarization required?
Brokerage disclosures themselves typically do not require notarization. Notarization needs depend on state law and related instruments (deeds, powers of attorney), so verify local requirements before notarizing.
How should records be stored?
Store signed agreements and the audit trail in encrypted, access-controlled systems. Preserve reproductions that accurately reflect the signed record and metadata needed for authentication.
What if a party's name is incorrect?
Correct mismatched names via an executed amendment or corrected agreement. Maintain a clear chain of correction to avoid attribution disputes and potential regulatory questions.
How long must I keep signed disclosures?
Retain signed Brokerage Disclosure Agreements for the duration recommended by regulators and industry practice: generally a minimum of three years, with longer retention for tax, real estate, or healthcare-related records.

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