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Real Estate Agent Contract

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REAL ESTATE AGENT CONTRACT

This Real Estate Agent Contract (the Agreement) is entered into as of (Effective Date) by and between Client Name: , whose principal address is (Client), and Agent Name: , License No.: , with principal place of business at (Agent).

RECITALS

WHEREAS, Client is the owner or authorized seller of the real property located at (Property); and

WHEREAS, Client desires to engage Agent to provide real estate brokerage services in connection with the marketing, negotiation and sale (or lease) of the Property on the terms and conditions set forth herein; and

WHEREAS, Agent represents that Agent is duly licensed and qualified to perform such services and is willing to accept engagement on the terms set forth herein.

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

1. APPOINTMENT

Client hereby appoints Agent as Client's exclusive agent to act in connection with the marketing and sale (or lease) of the Property during the Term defined in Section 2. Agent accepts such appointment and agrees to use commercially reasonable efforts to procure a ready, willing and able buyer or lessee on terms acceptable to Client.

2. TERM

The term of this Agreement (Term) shall commence on and shall expire on , unless earlier terminated in accordance with Section 12.

3. SCOPE OF SERVICES

Agent shall provide brokerage services including, without limitation, preparing marketing materials, listing the Property on applicable multiple listing services, coordinating showings, advising Client on pricing and market conditions, negotiating offers, and assisting through closing (Services). Agent shall perform the Services in accordance with applicable law and professional standards.

4. LISTING PRICE AND MARKETING

Client authorizes Agent to list the Property at an initial listing price of $ . Agent shall obtain Client's written approval prior to any reduction in the listing price in excess of %.

Exclusive Right to Sell    Exclusive Agency    Open Listing

Agent will pay reasonable marketing expenses subject to reimbursement    Client will pay marketing expenses up to $

5. COMPENSATION; COMMISSION

Client agrees to pay Agent a commission (Commission) upon the closing of a transaction involving the Property. The Commission shall be:

A percentage of the gross sale price equal to % or A flat fee of $ .

The Commission is earned upon the occurrence of any of the following during the Term or any extension: (a) a binding contract for sale or lease of the Property executed by Client and a buyer or lessee procured by Agent or another procuring cause; (b) a broker-ready buyer; or (c) any sale or transfer resulting from an introduction by Agent. Commission shall be payable at closing and shall be prorated among cooperating brokers as customary.

6. EXPENSES AND REIMBURSEMENT

Client shall reimburse Agent for reasonable out-of-pocket expenses incurred in connection with marketing and sale of the Property, provided Agent obtains Client's prior written consent for expenses in excess of the agreed marketing budget. Reimbursements shall be due within fourteen (14) days of Client's receipt of documentation evidencing such expenses.

7. AGENCY RELATIONSHIP; DUTIES

Agent shall act as Client's agent and fiduciary with duties of loyalty, confidentiality, disclosure, reasonable care and accounting with respect to the transactional matters described herein. Agent shall disclose all material facts and conflicts of interest known to Agent and shall present all offers promptly to Client.

8. CONFIDENTIALITY

Agent shall not disclose Client's confidential information to third parties except as necessary to perform Services, to cooperate with other brokers, or as required by law. Confidential information does not include information that is or becomes publicly available without breach of this Agreement.

9. REPRESENTATIONS AND WARRANTIES

Client represents and warrants that Client has authority to engage Agent and to sell or lease the Property, that there are no undisclosed encumbrances that would preclude sale (other than those disclosed in writing to Agent), and that the information provided to Agent is accurate. Agent represents and warrants that Agent holds the licenses required to perform the Services and will comply with applicable laws and regulations.

10. INDEMNIFICATION

Each party (Indemnifying Party) shall indemnify, defend and hold harmless the other party (Indemnified Party) from and against any and all claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising from the Indemnifying Party's breach of this Agreement, negligence, willful misconduct, or misrepresentations. The Indemnified Party shall provide prompt written notice of any claim and cooperate in the defense thereof.

11. LIMITATION OF LIABILITY

Except for liability arising from fraud, willful misconduct or gross negligence, neither party shall be liable to the other for indirect, incidental, consequential, punitive or special damages. The aggregate liability of either party under this Agreement shall not exceed the total commissions actually paid to Agent under this Agreement.

12. TERMINATION

Either party may terminate this Agreement for material breach by the other party following written notice and a thirty (30) day opportunity to cure. Additionally, either party may terminate without cause upon days' prior written notice to the other; provided, however, that Agent shall remain entitled to Commission for transactions resulting from Agent's efforts prior to termination as set forth in Section 5.

13. NOTICES

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

14. AMENDMENTS; WAIVER

Any amendment to this Agreement must be in writing and signed by both parties. No course of conduct or failure to enforce any provision shall constitute a waiver of that provision unless in writing signed by the waiving party.

15. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

16. ENTIRE AGREEMENT; SEVERABILITY

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements. If any provision of this Agreement is determined to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

17. COUNTERPARTS; ELECTRONIC SIGNATURES

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

ADDITIONAL PROVISIONS

Client Printed Name:

By:

Date:

Agent/Broker Printed Name:

By:

Date:

Enter text✕

What a Real Estate Agent Contract Covers

A Real Estate Agent Contract is a written agreement between a licensed real estate agent or broker and a seller or buyer that defines the scope of representation, duties, compensation, and term. It typically specifies whether the agent is retained for listing, buyer representation, or both; the commission structure and payment timing; exclusivity or open-agency terms; marketing and MLS authorization; termination conditions; and dispute-resolution mechanisms. Clear execution and signatures from all parties make the contract enforceable and reduce later disagreements about authority, scope, or commission entitlement.

Why a Formal Agent Contract Matters

A written contract clarifies obligations, protects commission rights, defines performance expectations, and creates a record for disputes or audits. It also helps meet licensing and disclosure requirements and supports secure electronic execution under U.S. e-signature law.

Why a Formal Agent Contract Matters

Typical Parties Who Use This Contract

The contract is commonly used by licensed agents, brokerages, sellers, and buyers to document representation and fees.

  • Licensed listing agents documenting exclusive or open listing arrangements and commission terms.
  • Buyer agents establishing representation, permitted actions, and compensation expectations with prospective buyers.
  • Brokerages and managing brokers registering firm-level obligations and supervising agent authority under state licensing rules.

Use the contract whenever formalizing agent authority, listing terms, or buyer representation to ensure clarity and legal protection.

Core Elements to Include in a Professional Contract

A complete contract balances legal clarity with practical details so all parties understand roles, timelines, compensation, and remedies if obligations are unmet.

Parties

Full legal names of the seller(s), buyer(s) and the agent or brokerage, including broker license numbers and the brokerage business name when required by state law.

Scope

A clear description of whether the agreement covers listing, buyer representation, marketing activities, showing authority, and any limitations or excluded services.

Compensation

Exact commission percentage or flat fee, how it is earned, when it becomes payable, and handling of commission splits or cooperative broker fees.

Term

Start date, expiration date, auto-renewal conditions if any, and required notice to terminate, including what happens after an executed sale during the contract term.

Disclosures

State- and broker-required disclosures, dual-agency statements, agency notice forms, and any material property condition disclosures attached as exhibits.

Signatures

Signature blocks for all parties with printed names, dates, and witness or notary lines if a jurisdiction or broker policy requires notarization or witness execution.

Step-by-Step: Completing and Executing the Agreement

Follow these sequential steps to populate, review, and execute the contract correctly.

  • 01
    Prepare Document: Choose the correct template and enter parties and property details.
  • 02
    Set Compensation: Clearly state commission formula, splits, and payment conditions.
  • 03
    Add Disclosures: Attach required state or broker disclosures and review for completeness.
  • 04
    Sign and Store: Obtain signatures from all parties and retain an executed copy in secure storage.

Configuring an Online Signing Workflow

When sending the contract electronically, configure signer order, authentication, and notifications for a compliant workflow.

Field Configuration
Authentication Method Email link or SMS code; use stronger methods for high-risk transactions.
Signing Order Specify sequential or parallel signing to control execution flow.
Template Variables Pre-fill recurring data like broker name to reduce manual entry errors.
Notifications Enable email confirmations and final certificate delivery to all parties.

Where to Send or File the Executed Contract

The executed agreement should be distributed to all parties and retained according to broker and state requirements.

  • To Parties: Send signed copies to seller, buyer, agent, and broker for their records.
  • Broker Office: Keep a firm-level copy per brokerage policies and state licensing requirements.
  • MLS Upload: Provide listing authorizations or summaries to MLS where required by local rules.
  • Title/Escrow: Share commission and agency details with escrow or title when instructed for closing disbursements.

Digital Signing and File Format Requirements

Use secure e-signature platforms compatible with common file types and integration needs.

  • File Types: PDF and DOCX supported
  • Integrations: CRM and cloud storage
  • Authentication: Email, SMS, or advanced methods

Consequences of an Incorrect or Missing Contract

Commission Disputes: Claims or litigation over unpaid fees
License Violations: Regulatory fines or disciplinary action
Unenforceable Terms: Vague clauses may be held invalid
Tax Implications: Misreported compensation triggers IRS review
Escrow Delays: Conflicting instructions can delay closings
Privacy Breach: Improper handling of PII can create liability

Common Preparation Errors to Avoid

  • Leaving commission language ambiguous or conditional without specifying earned triggers, which invites disputes over payment.
  • Using incomplete property descriptions or P.O. boxes instead of precise legal addresses, complicating title and escrow instructions.
  • Failing to attach required state or broker disclosures, creating compliance gaps and potential rescission claims.
  • Not confirming signatory authority for entities, resulting in execution by someone without power to bind the client.

Time-Sensitive Dates Often Included in the Contract

Contracts include multiple dates; track them to avoid missed notice periods or termination windows.

Effective Date:

Date when the contract's rights and duties commence

Expiration Date:

When agency term ends unless renewed or extended

Termination Notice:

Required days' notice to end the agreement if stated

Commission Payment Due:

When commission becomes payable after closing or sale

MLS Submission Window:

Deadline for providing listing materials to MLS where applicable

Practical Tips for Accurate and Efficient Completion

Follow these practices to reduce errors and streamline execution and compliance.

Use a standard template
Adopt and maintain a single, broker-approved template to ensure required disclosures and license information are always included and up to date; standardization reduces review time and legal risk.
Pre-fill recurring fields
Populate broker and office contact details, default commission splits, and MLS codes in templates to prevent manual entry mistakes and speed completion when preparing multiple agreements.
Confirm signer authority
When signing for entities, obtain written evidence of authorization and include the signer's title; this prevents later challenges that a signatory lacked power to bind the client.
Preserve audit trail
When using electronic signatures, retain the platform's audit record showing intent, timestamp, and signer attribution to support enforceability and compliance with ESIGN and UETA.

eSignature Provider Comparison for Signing and Managing Contracts

A brief comparison of common eSignature vendors and plan characteristics relevant to contract signing and compliance; signNow is listed first per comparison structure.

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 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
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common legal and technical questions about completing, executing, and storing a Real Estate Agent Contract.


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