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Real Estate Agent Agreement

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REAL ESTATE AGENT AGREEMENT

This Real Estate Agent Agreement ("Agreement") is made effective as of by and between Principal Name: (the "Principal") and Agent Name: (the "Agent").

RECITALS

WHEREAS, the Principal is the legal owner or authorized representative of certain real property identified below and desires to engage the Agent to procure buyers, lessees or tenants and to assist in negotiating and closing transactions concerning the Property; and

WHEREAS, the Agent is duly licensed and qualified to perform real estate brokerage services and represents that the Agent's license and professional capacity permit performance of the services contemplated by this Agreement; and

WHEREAS, the parties desire to set forth the terms and conditions under which the Agent will market the Property and render brokerage services.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. APPOINTMENT

Principal hereby appoints Agent as Principal's exclusive agent to market the Property, solicit offers, negotiate on Principal's behalf and to take such actions as expressly authorized under this Agreement. Agent accepts such appointment and agrees to perform the duties described herein in accordance with applicable law and industry standards.

2. PROPERTY

3. TERM

This Agreement shall commence on the effective date set forth above and continue until unless earlier terminated in accordance with Section 12 below.

4. LISTING TYPE

Select the listing type (check applicable box). Principal acknowledges selection by initialing below the chosen type.

Exclusive Right to Sell — Agent is entitled to commission regardless of who procures a buyer, subject to this Agreement.

Exclusive Agency — Agent entitled to commission except where Principal procures buyer without Agent's assistance.

Open Listing — Non-exclusive; commission payable only to broker who procures ready, willing and able buyer.

5. AGENT DUTIES AND AUTHORITY

Agent shall use commercially reasonable efforts to market the Property, which may include preparing marketing materials, listing the Property on applicable multiple listing services and cooperating with other brokers. Agent is authorized to: (a) advertise the Property; (b) schedule showings; (c) communicate offers to Principal; and (d) present cooperative broker offers. Agent shall not execute contracts on Principal's behalf except as authorized in writing by Principal.

6. COMMISSION AND PAYMENT

Principal agrees to pay Agent a commission equal to of the gross sale price, or a flat fee of if specified. Commission is earned and payable upon the earlier of (i) the closing of a transaction involving the Property, or (ii) the execution of a binding purchase agreement by Principal with a buyer procured by Agent. If a cooperative broker is involved, the cooperative split shall be of the gross sale price. Commission payable as a first priority disbursement from closing proceeds.

7. EXPENSES

Unless otherwise agreed in writing, Principal shall be responsible for customary marketing expenses including photography, signage and advertising. Agent may incur out‑of‑pocket marketing expenses on Principal's behalf only with Principal's prior written authorization. Maximum authorized marketing budget:

8. OFFERS, NEGOTIATION AND ESCROW

Agent shall promptly present all bona fide offers to Principal. Agent may advise Principal as to negotiation strategy but shall accept or reject offers only upon Principal's express authorization. Agent shall not accept deposit funds in Agent's trust account except as permitted by law and in compliance with escrow instructions. Agent shall provide copies of all offers and executed documents to Principal.

9. DISCLOSURES AND CONFLICTS OF INTEREST

Agent shall disclose any material relationship or interest that may create an actual or potential conflict of interest, including any dual agency or financial interest in prospective purchasers. Agent shall obtain Principal's written consent before acting as a dual agent. Disclosure details:

10. LICENSES, LAWS AND STANDARDS

Agent represents that Agent holds all licenses required to perform brokerage services and will comply with all applicable federal, state and local laws, ordinances and professional rules. Agent shall maintain insurance customary for the brokerage profession. Agent's broker of record: License Number:

11. CONFIDENTIALITY

Each party agrees to keep confidential all non‑public information obtained in the course of performance under this Agreement and not to disclose such information except as required by law or with the other's prior written consent. Confidential information does not include information that is or becomes generally available to the public other than through a breach of this Agreement.

12. INDEMNIFICATION

Principal shall indemnify, defend and hold harmless Agent and Agent's affiliates, officers and employees from and against any claims, losses, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of Principal's breach of this Agreement, misrepresentations concerning the Property, or Principal's failure to disclose material facts. Agent shall indemnify Principal for Agent's gross negligence, willful misconduct or material breach of this Agreement.

13. TERMINATION

Either party may terminate this Agreement upon written notice to the other party for material breach if such breach is not cured within fourteen (14) days after written notice. Termination shall not relieve Principal of obligations to pay commission for transactions that were substantially negotiated during the term of this Agreement or to reimburse Agent for authorized expenses incurred prior to termination.

14. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail (return receipt requested) to the addresses below or such other address as a party may designate in writing.

15. AMENDMENTS; WAIVER

This Agreement may be amended only by a writing signed by both parties. No waiver of any breach shall be effective unless in writing and signed by the party waiving the breach; no waiver of any breach shall be deemed a waiver of any other or subsequent breach.

16. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state identified below, without regard to that state's conflict of law principles.

17. ENTIRE AGREEMENT

This Agreement, including any attachments or addenda signed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations, written or oral.

18. SEVERABILITY

If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves, to the extent possible, the original economic, legal and commercial objectives of the invalid provision.

19. 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 deemed originals for all purposes.

20. MISCELLANEOUS

Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, except that Agent may delegate duties to affiliated licensees while remaining responsible for performance. The headings in this Agreement are for convenience only and shall not affect interpretation.

Principal Printed Name:

Agent Printed Name:

By:

By:

Date:

Date:

Enter text✕

What a Real Estate Agent Agreement Is and when it applies

A Real Estate Agent Agreement is a written contract that defines the relationship between a property owner and a real estate agent or brokerage, specifying the agent's authority, duties, commission structure, exclusivity, term, and any marketing or listing obligations. It governs whether the agent has exclusive rights to list and sell the property or a non-exclusive right to market it, and establishes how compensation is calculated and paid. The agreement also sets timelines for showing, offers, and termination, and may include disclosure, indemnity, and dispute resolution clauses tailored to the state where the property is located.

Why using a clear agreement protects both parties

A written Real Estate Agent Agreement reduces misunderstandings about commission, authority, and timing, creates enforceable expectations, and documents consent to marketing and fee allocation under state law and common brokerage practice.

Why using a clear agreement protects both parties

Who typically signs this agreement

Common parties include property owners, listing agents, buyer's agents, and brokerages; each has specific responsibilities and signature roles.

  • Property owners or sellers responsible for authorizing listing, disclosing known defects, and accepting commission terms.
  • Listing agents or brokers who represent the seller and execute marketing and showings under agency duties.
  • Buyer's agents when engaged under a buyer representation agreement to establish compensation and scope of representation.

Identifying the right signers up front avoids signature gaps and ensures the agreement is enforceable for listing, marketing, and commission purposes.

Essential clauses to include in a professional agreement

A complete agreement groups core obligations, payment terms, and legal protections so both parties understand performance, timing, and remedies.

Scope of Authority

Defines whether the agent has exclusive, exclusive agency, or non-exclusive rights to market and negotiate for the property, including geographic or listing limits.

Term and Termination

Specifies the effective date, expiration, automatic renewals if any, and permitted termination events along with notice periods and post-termination obligations.

Compensation

States commission percentage or flat fee, payable events (closing, net proceeds), payment timing, and how dual agency or co-broker splits are handled.

Duties and Services

Lists marketing activities, showing responsibilities, listing in MLS, open houses, and any promised advertising or staging services.

Representations

Seller and agent representations about authority, property condition disclosures, legal compliance, and any known encumbrances or liens.

Dispute Resolution

Specifies governing law, arbitration or court procedures, venue, and allocation of attorney fees if applicable.

Step-by-step: completing the agreement

Follow a consistent sequence to prepare, review, and secure signatures for a legally sound agreement.

  • 01
    Prepare draft: Populate names, dates, address, and commission fields.
  • 02
    Review terms: Confirm scope, term, and any contingencies with all parties.
  • 03
    Collect signatures: Obtain all required signatures and dates.
  • 04
    Distribute copies: Provide signed copies to seller, agent, and brokerage records.

Typical routing and execution flow

Agreements usually follow a predictable path from creation to final archival; document each handoff to preserve consent and auditability.

  • Drafting: Broker creates or populates template fields.
  • Seller review: Seller reads and requests edits if needed.
  • Signing: Parties sign electronically or in person.
  • Recordkeeping: Signed copy is stored and shared with MLS if required.

Configuring a digital signing workflow

Set clear roles, authentication, and field requirements when automating signature collection to reduce errors and streamline closings.

Field Configuration
Signer order Sequential or parallel signing as needed
Authentication method Email link, SMS code, or stronger verification
Required fields Make signatures, dates, and commission fields mandatory
Notification settings Enable reminders and completion alerts

Digital signing and platform considerations

Choose a platform that supports PDF and DOCX uploads, audit trails, and standard signer authentication to meet legal and brokerage needs.

  • File formats: PDF and DOCX supported
  • Integrations: CRMs and MLS via API
  • Security: AES-256 at rest

Key deadlines to track when executing agreements

Time-sensitive items include effective date, listing expiration, commission payment triggers, and any statutory disclosure periods.

Effective Date:

Date when agent authority begins

Listing Expiration:

Automatic end date for agency rights

Offer Response Window:

Seller response timeframe to an offer

Commission Due:

Typically payable at closing

Record Retention:

Start retention clock from executed date

Milestones from listing to closing

A sequential milestone view helps track obligations from listing through closing and post-closing record retention.

01

Listing Activation

Document uploaded and MLS listing becomes active.

02

Showings and Offers

Agent conducts showings; offers are presented to seller.

03

Contract Ratification

Buyer and seller execute purchase contract; contingencies commence.

04

Closing and Payment

Title transfer and commission disbursement occur.

Common preparation mistakes to avoid

  • Leaving the effective date or expiration blank, which can create ambiguity about agent authority and liability.
  • Using vague commission language such as 'reasonable' without a percentage or flat fee, increasing the risk of disputes.
  • Failing to confirm signers' legal names or authority for entities, which can delay closing or invalidate the agreement.
  • Not retaining a complete audit trail or signed copy, complicating dispute resolution and recordkeeping compliance.

Legal and financial risks of errors

Commission Disputes: Unclear terms can lead to litigation and unpaid fees.
Tax Consequences: Incorrect payee information may trigger backup withholding.
I-9 Timing: Employment-related errors can incur fines per 8 CFR §274a.2.
Recordkeeping Violations: Failure to retain documents risks regulatory exposure.
Notary Defects: Improper notarization can void conveyancing steps.
Intentional Misstatement: Deliberate misrepresentations can trigger civil penalties.

Real-world examples of how parties use these agreements

Cases below show how different organizations applied agreements to speed transactions while preserving legal compliance.

Martin Properties — Tim Martin

A mid-size brokerage moved its listing forms online to reduce processing delays and improve compliance

  • Outcome: faster returns and remote signing availability
  • Tim Martin: "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures — Brian Fitzgibbons

A small investment firm standardized agent agreements to reduce negotiation time and ensure consistent commission language

  • Outcome: fewer disputes and clearer agent duties
  • Brian Fitzgibbons: "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Practical tips for accurate, efficient completion

Adopt consistent procedures to minimize disputes, ensure enforceability, and simplify audits or MLS submission.

Use a standard template
Start with an approved template that includes mandatory clauses, required disclosures, and state-specific language to prevent omissions and speed review.
Validate signer identity
Confirm signer names and authority, using ID checks or multi-factor authentication for remote signings to strengthen attribution and defendability.
Capture audit data
Preserve timestamps, IP addresses, and action logs for every signing event to support enforceability and recordkeeping.
Check local rules
Verify state notary and witness requirements, MLS upload formats, and recording practices before finalizing the agreement.

Exclusive Right to Sell versus Exclusive Agency — key differences

Understanding these two common listing types prevents misunderstanding about commission entitlement when the seller or another broker procures a buyer.

Criteria Exclusive Right to Sell Exclusive Agency
Seller liability agent paid regardless agent paid unless seller finds buyer
Commission guarantee
Seller marketing allowed limited by agreement seller may market independently
Common usage most residential listings used when seller wants flexibility

Selected eSignature vendor pricing and capability snapshot

Price and specific feature availability vary by plan; the table below shows typical starting prices and common capabilities 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 Yes, 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions and quick answers

Answers to common questions about enforceability, notarization, signatures, and handling of signed Real Estate Agent Agreements.


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