Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states. Exceptions include certain testamentary documents and court filings. Confirm your state law and any industry-specific rules before relying solely on e-signatures.

Is notarization required for real estate documents?

Many deed acknowledgements and recordable instruments require a notary acknowledgement. Agency agreements tied to recordable conveyances may need notary witnesses depending on state law; verify with the county recorder or title company.

Can I use Remote Online Notarization (RON)?

RON is available in most states but rules vary. Key requirements include identity proofing, audio-video recording, and retention obligations. Check your state notary commission for permitted RON methods and retention periods.

What are the tax reporting implications?

Commission payments to nonemployees generally require Form 1099-NEC reporting by Jan 31. Ensure the payee provides a W-9 to avoid backup withholding at 24% and follow IRC §6721 for filing penalties if returns are late or incorrect.

Who is authorized to sign on behalf of a brokerage?

Only the licensed broker or an authorized officer with delegated authority should sign for a brokerage. Verify internal authorization and document the signer’s title to avoid licensing issues and disputes.

What audit and security records should I keep?

Retain signed copies, the full audit trail (timestamps, IP addresses, authentication method), and any notarization evidence. For PHI, ensure HIPAA compliance and BAA coverage and follow 45 CFR §164.530(j) for retention.

Electronic Signature
Templates
Real estate
Real Estate Agency Agreement

Real Estate Agency Agreement

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

REAL ESTATE AGENCY AGREEMENT

Parties and Appointment

This Real Estate Agency Agreement is entered into between the undersigned property owner (Principal) and the licensed real estate broker (Broker). Principal hereby appoints Broker as Principal's exclusive agent for the marketing and sale/lease of the Property described below, subject to the terms and conditions of this Agreement.

Principal / Property Owner - Full Legal Name Principal Address for Notices Broker / Brokerage Firm - Full Legal Name Broker License Number Broker Address for Notices

Effective Date: . Term: This Agreement commences on the Effective Date and continues until unless earlier terminated in accordance with this Agreement.

Property Identification

Property Street Address Parcel / APN Number Legal Description

Appointment and Agency Type

Principal grants Broker the following agency authority (select one):

Exclusive Right to Sell/Lease (Broker earns commission if property is sold or leased during the Term, regardless of procuring party) Exclusive Agency (Broker earns commission if Broker or cooperating broker procures buyer/tenant; Principal retains right to procure a buyer/tenant) Non-Exclusive (Principal may engage additional brokers)

Listing Price, Marketing and Authority

Proposed Listing / Asking Price

Broker is authorized to advertise, hold open houses, place signage on the Property, list in cooperative databases, and to show the Property to prospective purchasers/tenants during reasonable hours. Broker may, subject to law and Principal's instructions, engage cooperating brokers and other marketing channels.

Authorized marketing actions (check those authorized):

List on multiple listing service (MLS) Place For Sale/For Lease signage on Property Install lockbox and permit showings

Compensation and Commission

Principal agrees to pay Broker compensation as described below. Commission is earned upon (a) execution of a binding purchase agreement or lease agreement by Principal and purchaser/tenant during the Term, or (b) closing/consummation of the transaction if required by this Agreement.

Commission - Percentage of Gross Sale Price Or Flat Fee Commission (if applicable)

Cooperating broker share (if any): % of gross sale price. Commission is payable at closing or upon occurrence of an event defined above. If Principal procures buyer/tenant and agreement selected above entitles Broker to commission, Broker shall be paid as stated herein.

If transaction fails due to Principal's breach, Broker shall remain entitled to commission or an agreed termination fee equivalent to . Expenses advanced by Broker for marketing and advertising shall be reimbursed by Principal upon presentation of invoices unless otherwise agreed in writing.

Client Representations, Disclosures and Inspections

Principal represents and warrants to Broker that Principal has authority to enter into this Agreement, to market and convey the Property, and to disclose material facts regarding the Property. Principal shall complete and deliver to Broker all mandated disclosures and shall timely provide access for inspections and showings.

Lead-Based Paint: Yes No

Mold/Water Intrusion History: Yes No

Prior Material Damage (fire, structural): Yes No

If any answer is Yes, describe material facts

Dual Agency and Conflicts

Broker may represent both Principal and a prospective buyer/tenant (dual agency) only with Principal's informed consent. Principal indicates consent by checking the appropriate box below.

Principal consents to dual agency where legally permitted Principal refuses consent to dual agency

Confidentiality, Indemnification and Liability

Broker shall keep confidential those Principal communications designated as confidential, except as required by law or agreed in writing. Principal shall indemnify, defend and hold Broker harmless from claims, liabilities, costs and expenses arising from Principal's breach of representation or failure to disclose material facts. Broker's liability shall be limited to proven direct damages; Broker shall not be liable for consequential or special damages.

Termination and Default

This Agreement may be terminated by mutual written agreement or by either party upon days' written notice, except that termination shall not affect Broker's right to commissions on transactions procured by Broker during the Term. Principal's failure to comply with material obligations shall constitute default and entitle Broker to remedies at law and equity.

Expenses and Trust Funds

Broker may advance customary marketing expenses subject to Principal's prior written approval. Any funds received by Broker in trust shall be deposited into Broker's trust or escrow account in accordance with applicable law and disbursed only in accordance with the terms of the transaction and applicable regulations.

Retainer or Advance for Marketing Expenses (if any)

Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the state or jurisdiction where the Property is located. This Agreement contains the entire agreement between the parties concerning the subject matter herein and supersedes all prior negotiations and understandings. Any amendment must be in writing and signed by both parties.

Notices

All notices required or permitted under this Agreement shall be in writing and shall be delivered personally, by certified mail, or by other nationally recognized courier to the addresses set forth below or to such other address as a party may designate by written notice to the other party.

Principal Contact Name and Phone Broker Contact Name and Phone

Additional Terms

Additional Provisions or Special Instructions

Principal / Owner Printed Name:

By:

Date:

Broker / Brokerage Printed Name:

By:

Date:

What the Real Estate Agency Agreement Is and When It Applies

A Real Estate Agency Agreement is a written contract creating an agency relationship between a property owner (principal) and a real estate broker or agent. It sets scope of authority, duties, commission arrangements, exclusivity, term, and termination rights. The agreement governs marketing, showings, offers, and closing activities for residential or commercial property and establishes how commissions are earned and paid. Carefully drafted agency agreements reduce misunderstanding and provide evidence for disputes, tax reporting, and compliance with state real estate licensing laws.

Why a Clear Agency Agreement Matters

A precise agreement clarifies agent duties, commission structure, and client expectations while reducing litigation risk and regulatory exposure. It documents authority for negotiations, helps meet state disclosure rules, and supports tax and recordkeeping requirements under IRS and state law.

Who Typically Prepares and Signs This Agreement

Legal counsel, brokerage compliance officers, or transaction coordinators often review agreements before execution to confirm state-specific requirements and disclosures.

Listing brokers and their designated agents — establish exclusive or non-exclusive listing terms and commission expectations.
Property owners and sellers — define scope, term, and termination rights for sale or lease representation.
Commercial brokers and landlords — set commission splits, tenant-procurement terms, and project-specific obligations.

Step-by-Step: How to Complete a Real Estate Agency Agreement

Follow these sequential steps to prepare, verify, and finalize the agreement for execution and recordkeeping.

01

Draft: Fill party names, property, commission, term, and duties accurately.
02

Review: Confirm license details, disclosure obligations, and local mandatory clauses.
03

Authenticate: Decide on notarization or witness needs and identify signer authentication method.
04

Execute: Collect signatures, dates, and retain copies for tax and compliance records.

Essential Clauses Every Professional Agreement Should Include

A thorough Real Estate Agency Agreement organizes responsibilities, compensation, and legal protections. Include these core elements to reduce ambiguity and support enforceability in transactions.

Parties

Identify the principal and the licensed brokerage with legal business names, addresses, license numbers, and contact information for record and regulatory purposes.

Property Description

Provide the full street address, parcel or unit number, and any attachments (legal description or exhibit) to precisely define the subject property.

Agent Duties

List the services the agent will perform, including marketing, showings, negotiating offers, handling escrow, and communicating with other brokers.

Compensation

Describe commission formula, splits, when the fee becomes earned, alternative fee arrangements, and obligations if sale fails due to seller action.

Term & Termination

Specify start/end dates, automatic renewal provisions, termination notice periods, and consequences such as post-termination procuring-cause obligations.

Disclosures & Compliance

Include required state disclosures, lead-based paint notices, agency disclosure statements, and a governing-law clause naming the interpreting state.

Required Information and Key Data Points

Principal Name: Full legal name

Brokerage Name: Licensed entity name

License Numbers: State license IDs

Property Details: Address and parcel ID

Compensation Terms: Rate or flat fee

Signatures: Typed and dated

Configuring an Online Signing Workflow

Set up a straightforward digital workflow that covers signer order, authentication, notarization options, and final delivery formats.

Field	Configuration
Signer Order	Agent first \| Principal second
Authentication	Email link or SMS code
Notarization	In-person or RON session
Delivery	Signed PDF with audit trail

How Electronic Execution and Routing Works

Digital workflows let you place signable fields, define signing order, authenticate signers, and capture an audit trail that evidences intent and attribution.

Upload Document: Add the agreement PDF or DOCX to the platform.
Place Fields: Insert signature, date, and initial fields.
Send to Signers: Use ordered routing or a signing link.
Finalize: Signed copy and certificate issued.

Key Timing and Reporting Deadlines to Remember

Certain tax and reporting deadlines can be triggered by agency compensation; observe IRS and information return schedules to avoid penalties.

W-9 Requests:

Provide a completed W-9 upon payer request to avoid backup withholding.

1099-NEC Filing:

File and furnish 1099-NEC by Jan 31 for nonemployee compensation.

1099-MISC Filing:

Recipient copy due Jan 31; IRS paper Feb 28, electronic Mar 31.

Income Tax Return:

Individual returns due April 15 (Form 1040).

Record Retention:

Keep tax records at least 3 years from filing (IRC §6501(a)).

Common Preparation Mistakes to Avoid

Leaving party names or license numbers incomplete — leads to enforceability and regulatory issues.
Using vague commission language such as 'market standard' — causes disputes over amount and timing of payment.
Failing to include required state disclosures — may trigger penalties or rescission rights under state law.
Neglecting to specify procuring-cause or post-termination buyers — can produce commission litigation.

Penalties and Risks of an Incorrect Agreement

Commission Disputes: Litigation or arbitration risk

Regulatory Fines: State licensing sanctions possible

Tax Penalties: 1099 reporting errors trigger IRC §6721 fines

Contract Rescission: Improper disclosures can void agreements

Escrow Liability: Misallocated funds risk civil claims

Notary Irregularities: Faulty acknowledgements weaken enforceability

Real-World Examples of Electronic Execution

These short cases illustrate practical outcomes when agencies move to digital signing and cloud storage for agreements.

Martin Properties — Tim Martin

Martin Properties switched to online execution for listing agreements to reduce turnaround time.

The team used mobile signing on-site to finalize paperwork.
Tim Martin reported processing and executing documents online with compliance and security, enabling faster closings and fewer in-person meetings while maintaining audit trails for regulators and accounting.

Optica Ventures — Brian Fitzgibbons

A small investment firm centralized agency contracts in a secure signing platform.

Staff could send uniform templates to partners.
Brian Fitzgibbons noted the interface was easy for the team and customers, allowing consistent execution, centralized storage, and simplified proof of signature for future audits.

Practical Tips for Accurate and Efficient Completion

These best practices reduce errors, speed approvals, and improve enforceability for agency agreements used in real estate transactions.

Use Clear, Specific Language

Avoid ambiguous terms for commission, term, and duties. Define when a commission is deemed earned and whether cooperating brokers share fees.

Include License and Contact Info

Record broker license numbers and primary contact details to satisfy state board requirements and facilitate regulatory inquiries.

Decide Notarization Up Front

Determine whether the signature must be notarized or witnessed for recordation and set workflow for in-person or RON execution.

Centralize Signed Copies

Store executed agreements and audit trails in a secure system with retained metadata to support tax, compliance, and dispute response.

eSignature Vendor Comparison for Real Estate Agency Agreements

Compare common eSignature providers on pricing and key capabilities relevant to executing Real Estate Agency Agreements electronically.

	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	Yes, 7-day trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

FAQs and Troubleshooting for Agency Agreement Execution

Answers to common legal, technical, and procedural questions about signing and managing Real Estate Agency Agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states. Exceptions include certain testamentary documents and court filings. Confirm your state law and any industry-specific rules before relying solely on e-signatures.
Is notarization required for real estate documents?
Many deed acknowledgements and recordable instruments require a notary acknowledgement. Agency agreements tied to recordable conveyances may need notary witnesses depending on state law; verify with the county recorder or title company.
Can I use Remote Online Notarization (RON)?
RON is available in most states but rules vary. Key requirements include identity proofing, audio-video recording, and retention obligations. Check your state notary commission for permitted RON methods and retention periods.
What are the tax reporting implications?
Commission payments to nonemployees generally require Form 1099-NEC reporting by Jan 31. Ensure the payee provides a W-9 to avoid backup withholding at 24% and follow IRC §6721 for filing penalties if returns are late or incorrect.
Who is authorized to sign on behalf of a brokerage?
Only the licensed broker or an authorized officer with delegated authority should sign for a brokerage. Verify internal authorization and document the signer’s title to avoid licensing issues and disputes.
What audit and security records should I keep?
Retain signed copies, the full audit trail (timestamps, IP addresses, authentication method), and any notarization evidence. For PHI, ensure HIPAA compliance and BAA coverage and follow 45 CFR §164.530(j) for retention.

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