When must the disclosure be provided?

Provide the fee disclosure at listing or before parties sign the purchase agreement when the fee affects buyer or seller obligations. Timely delivery reduces closing delays and supports enforceability.

Can the disclosure be signed electronically?

Yes. Electronic signatures are generally valid under U.S. law when intent and consent are demonstrated and records are retained. Follow consumer-disclosure rules for consumer-facing transactions where applicable.

Who is authorized to sign on behalf of a brokerage?

A licensed broker or an authorized signatory designated by the brokerage may sign. Ensure the signer has authority under the brokerage's internal policies and state licensing rules.

Do I need a notary for the disclosure?

Most jurisdictions do not require notarization for fee disclosures, but specific transaction types or local practices may. Check local requirements when notary or RON is customary.

What if the fee changes after signing?

Document amendments in writing and obtain new signatures from all parties. Keep both versions in the transaction record and note the effective date of the amendment.

How long should I retain the signed disclosure?

Retain the signed disclosure with transaction records for at least three years after closing for tax and audit purposes; longer retention may apply for industry-specific or state requirements.

Electronic Signature
Templates
Real estate
Real Estate Broker Fee Disclosure

Real Estate Broker Fee Disclosure

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

REAL ESTATE BROKER FEE DISCLOSURE

Property Identification

Property Address Assessor's Parcel / APN Legal Description

Parties

Client Name Client Contact (Address / Phone / Email) Brokerage Firm Designated Agent / Broker Broker License Number

Brokerage Relationship

The parties acknowledge the brokerage relationship for this transaction. Select applicable relationship(s):

Seller's Agent Buyer's Agent Dual Agent (consent required) Transaction Broker / Non-agent

Broker Fee / Compensation

Broker compensation for services in connection with the sale or purchase of the Property shall be as follows. Indicate method of compensation and amounts.

Fee Type Percentage of sale price: Flat fee: Other (describe): Payable By Seller Buyer Other (specify) Allocation / Split

Additional Fees & Disbursements

The Client acknowledges the following additional fees and who is responsible for them. Check applicable fees and provide amounts where required.

Administrative / Processing Fee Marketing / Advertising Fee Referral Fee Other Fees

When Fee Is Earned / Payable

Unless otherwise agreed in writing, broker fees shall be earned and payable upon closing of the transaction or upon performance as follows:

Closing Date (if known):

If the transaction does not close, the Client and Broker agree that compensation will be:

Conflicts, Affiliations and Referral Fees

The Broker discloses the following material relationships, affiliations, financial interests, or referral arrangements related to this transaction. Check applicable disclosures and describe.

Affiliated business arrangement exists Referral fee or kickback will be paid to/from a third party

Client Acknowledgments & Consent

By signing below, the Client acknowledges that the terms of compensation above have been disclosed, that the Client has the opportunity to review and negotiate these terms, and that the Client consents to payment of broker compensation as set forth herein.

Client acknowledges and consents to broker compensation Client acknowledges receipt of any disclosed conflicts/affiliations

Cancellation, Refunds and Remedies

Unless otherwise agreed in writing, any retainer provided to Broker shall be applied to fees earned at closing. If Broker has performed services and the transaction fails for reasons not caused by Broker's failure to perform, Client may remain liable for earned fees and reasonable costs. Describe any special cancellation or refund terms here:

Legal Provisions

Governing Law: This Disclosure and any disputes arising out of or related to it shall be governed by the laws of the state in which the Property is located, without regard to conflict of laws principles.

Entire Agreement: This Disclosure, together with any separate written brokerage agreement between the parties, constitutes the entire understanding regarding broker compensation and supersedes prior oral or written statements on the subject.

Severability: If any provision of this Disclosure is held unenforceable, the remaining provisions shall remain in full force and effect.

Acknowledgment of Receipt

The Client acknowledges receipt of a copy of this Broker Fee Disclosure and understands the compensation terms described herein.

Client Printed Name:

Client Signature:

Date:

Broker Printed Name:

Broker Signature:

Date:

What the Real Estate Broker Fee Disclosure Is and when it applies

The Real Estate Broker Fee Disclosure is a signed record used in residential and commercial transactions to disclose broker compensation, commission splits, referral fees, and any additional broker charges payable by buyers or sellers. It names the broker or brokerage, states the commission formula or flat fee, and notes payment timing and recipient. The disclosure is provided to parties before or at contract execution to document awareness of compensation arrangements, reduce conflicts of interest, and support compliance with state real estate licensing rules and consumer-protection obligations.

Why a clear fee disclosure matters for brokers and clients

A precise Real Estate Broker Fee Disclosure reduces misunderstandings about payment, documents potential conflicts of interest, and supports license compliance. It creates an auditable record for both parties and helps avoid disputes at negotiation or closing by making the broker's financial interest transparent.

Who prepares and receives the Broker Fee Disclosure

Typical users who prepare or receive the Real Estate Broker Fee Disclosure include licensed brokers, buyers, sellers, and transaction coordinators.

Licensed real estate brokers and their supervising brokers who manage compensation and client disclosures.
Buyers and sellers reviewing fee obligations before signing purchase agreements to confirm financial responsibilities.
Title companies, closing agents, and transaction coordinators verifying disclosure is included in closing documentation.

Keep copies with transaction files and provide them to regulatory auditors or clients on written request.

Typical signers and their responsibilities

Listing Broker

A licensed listing broker completes the disclosure to identify commission percentages, flat fees, and payment conditions tied to the listing. The broker must ensure the seller acknowledges fees and understands any referral or split arrangements that could affect net proceeds.

Buyer Agent

The buyer agent documents any buyer-paid broker fees, rebates, or referral arrangements. The agent should disclose compensation to the buyer and note whether compensation is contingent on closing or paid directly by another party.

Core elements to include in a professional Fee Disclosure

A complete disclosure is concise but comprehensive: identify parties, specify compensation, show timing, and capture signatures. Include any special conditions or referral relationships to avoid ambiguity.

Broker Identification

Full brokerage name, licensed agent name, license number, and contact information. This ensures that regulators and parties can confirm the responsible licensee and trace the agreement to the broker of record.

Commission Structure

Specify percentage rates, flat fees, or tiered commission schedules. Include the calculation basis (sale price, net proceeds) so both parties understand how amounts are determined and computed at closing.

Payment Timing

State when the fee is earned and payable (e.g., at closing, at contract ratification, upon receipt of funds). Clarify conditions that might delay or accelerate payment to avoid disputes.

Fee Recipient

Name the person or entity receiving payment (brokerage, referral partner, escrow). Identifying the recipient reduces confusion about routing and tax reporting obligations.

Referral / Dual Agency

Disclose any referral fees, dual-agency status, or affiliated relationships. Clear disclosure prevents conflicts and aligns with consumer-protection rules in many jurisdictions.

Signatures & Date

Signature blocks for all parties and the broker plus dated acknowledgment. Signatures confirm consent and are central to enforceability and audit trails for regulatory review.

Step-by-step: completing the Broker Fee Disclosure

Follow these steps to prepare and finalize the fee disclosure before contract execution or at listing.

01

Prepare document: Populate broker, property, and commission fields accurately.
02

Review with client: Walk through amounts, splits, and referral details with buyer or seller.
03

Obtain signatures: Have all parties sign and date the disclosure as provided.
04

Store copy: Save signed version with the transaction file for closing and audits.

Configuring an online disclosure workflow

Set up a digital workflow to route disclosure for completion, signature, and secure storage.

Field	Configuration
Required Fields	Make broker name, property, and commission mandatory.
Signer Order	Set listing or buyer signers first, broker signs last.
Authentication	Enable email or SMS code verification for signers.
Storage	Auto-save signed PDFs to transaction repository.

Where to send the completed disclosure and who keeps copies

Routing the disclosure promptly ensures closing readiness and regulatory traceability.

Broker Transaction File: Store signed disclosure with the listing or buyer file.
Client Copies: Provide signed copies to buyer and seller for their records.
Closing Agent: Upload to title or escrow to include in settlement package.
Regulatory Requests: Produce on request to licensing authority or auditors.

Technical considerations for eSignature and eSubmission

Use a platform that supports common document formats, secure authentication, and an auditable trail for signed disclosures.

File formats: PDF and DOCX are standard.
Authentication: Email link, SMS code, or stronger MFA.
Integrations: Connect to CRM, title, or cloud storage.

Ensure the chosen platform preserves signatures and audit data, stores the signed file securely, and supports easy retrieval for closing or compliance reviews.

Common eSignature vendors for fee disclosures (overview)

Compare typical vendor pricing and basic capabilities relevant to signing and storing broker fee disclosures. signNow is listed first per platform 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 trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

When to provide the disclosure during a transaction

Timely delivery of the fee disclosure reduces disputes and supports regulatory compliance; follow these timing checkpoints.

At Listing:

Provide to the seller when the listing agreement is signed.

Prior to Contract:

Deliver to buyers before they sign a purchase agreement when fees affect buyer obligations.

At Offer Acceptance:

Confirm disclosure terms remain accurate when an offer is accepted or amended.

Before Closing:

Make a final disclosure available to closing agent to include in settlement.

On Request:

Produce signed copies promptly for audits or regulatory inquiries.

Common mistakes that cause delays or disputes

Leaving commission fields vague (for example, 'market rate') instead of stating a clear percentage or dollar amount.
Failing to disclose referral or dual-agency arrangements that could present a conflict of interest.
Using initials or unsigned fillable fields instead of full signatures and dates required by the transaction file.
Storing only an unsigned draft in the transaction record rather than the final signed disclosure used at closing.

Risks of incorrect or missing fee disclosures

Regulatory Discipline: License fines or suspension

Civil Liability: Breach-of-contract or fraud claims

Tax Exposure: Incorrect reporting or withholding

Closing Delays: Escrow refusal or settlement hold

Reputational Harm: Client complaints and lost referrals

Enforcement Actions: State agency investigation

Essential data points to capture on the disclosure

Broker Name: Full licensed name

License Number: State license ID

Property: Full legal address

Compensation: Dollar or percentage

Recipient: Payee name or entity

Signatures: All parties and dates

Practical tips for accurate, efficient disclosures

Use consistent templates and verification steps to reduce errors and speed processing for fee disclosures.

Use precise monetary language

State exact percentages or dollar amounts rather than vague terms. Include a short worked example showing how the commission would calculate at sample sale prices to avoid interpretation disputes.

Confirm license details

Verify broker and agent license numbers before populating the disclosure fields. Incorrect license information can trigger regulatory follow-up and delay closings.

Keep a single signed version

Archive the final fully executed disclosure in a central transaction repository. Mark drafts clearly and ensure only the executed file is used for settlement and reporting.

Standardize eSigning workflow

Use a consistent digital workflow with authentication, mandatory fields, and automatic routing to closing agents. This reduces signature errors and provides a complete audit trail for compliance.

Real-world examples of fee disclosures in practice

Two brief examples show how brokers and firms use standardized disclosures to resolve common operational issues.

Martin Properties

Martin Properties streamlined fee disclosures for remote closings by consolidating commission terms into a single fillable disclosure form.

Reduced signature errors and turnaround time.
"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

Optica Ventures adopted a template to capture referral splits and secondary payees consistently across listings.

Improved internal accounting for splits.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Frequently asked questions about the Broker Fee Disclosure

Answers to common questions about timing, eSigning, signature authority, and storage help avoid processing delays and compliance issues.

Need help? Contact support

When must the disclosure be provided?
Provide the fee disclosure at listing or before parties sign the purchase agreement when the fee affects buyer or seller obligations. Timely delivery reduces closing delays and supports enforceability.
Can the disclosure be signed electronically?
Yes. Electronic signatures are generally valid under U.S. law when intent and consent are demonstrated and records are retained. Follow consumer-disclosure rules for consumer-facing transactions where applicable.
Who is authorized to sign on behalf of a brokerage?
A licensed broker or an authorized signatory designated by the brokerage may sign. Ensure the signer has authority under the brokerage's internal policies and state licensing rules.
Do I need a notary for the disclosure?
Most jurisdictions do not require notarization for fee disclosures, but specific transaction types or local practices may. Check local requirements when notary or RON is customary.
What if the fee changes after signing?
Document amendments in writing and obtain new signatures from all parties. Keep both versions in the transaction record and note the effective date of the amendment.
How long should I retain the signed disclosure?
Retain the signed disclosure with transaction records for at least three years after closing for tax and audit purposes; longer retention may apply for industry-specific or state requirements.

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