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Real Estate Client Agreement

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REAL ESTATE CLIENT AGREEMENT

Parties and Contact Information

Recitals and Engagement

This Agreement is made effective as of between Client and Broker. Client retains Broker to provide real estate services subject to the terms and conditions set forth herein. Broker accepts such engagement and agrees to act as a fiduciary in accordance with applicable law.

Scope of Engagement

Broker is authorized to perform real estate brokerage services including market analysis, marketing and advertising the Property, negotiating offers, preparing necessary documents, coordinating inspections and closing, and such other acts as are reasonably necessary to carry out this Agreement.

Term of Agreement

This Agreement commences on and will terminate on unless earlier terminated in accordance with this Agreement.

Property Identification

Compensation and Financial Terms

Client agrees to pay Broker a commission equal to of the gross sales price (the "Commission"), payable at closing or as otherwise agreed below.

Earnest money or deposit amount to be held in escrow (if applicable): payable to

Commission shall be deemed earned and payable upon closing, or upon earlier breach by Client or upon procurement of a ready, willing and able buyer as provided in this Agreement.

Client and Broker Obligations

Client warrants that Client has authority to enter into this Agreement and to authorize the sale or purchase of the Property. Client shall timely provide access to the Property for showings, inspections and appraisals, and shall disclose all material facts known to Client affecting the value or desirability of the Property.

Broker shall exercise reasonable professional efforts to market the Property, present offers, advise Client, and to comply with all licensing and disclosure obligations. Broker does not guarantee transaction outcomes, financing, or closing dates unless expressly stated in writing.

Disclosures and Acknowledgments

Client represents the following as accurate to the best of Client's knowledge at the time of signing. Client shall update Broker in writing of any change.

Dual Representation and Confidentiality

Client understands that Broker may represent multiple parties, and that dual agency may occur. Client authorizes dual representation only if Client indicates consent below. Broker will keep confidential all material confidential information as required by law, except that Broker may disclose facts required by law or with Client's consent.

Default, Remedies, and Termination

If Client breaches this Agreement, Broker shall be entitled to pursue available remedies including recovery of the Commission if earned, injunctive relief, and costs of collection. Either party may terminate this Agreement upon material breach by the other party, subject to cure rights where required by law.

Indemnification and Insurance

Client shall indemnify Broker against claims arising from Client's misrepresentations or failure to disclose material facts. Broker shall maintain professional liability insurance as required by applicable law or licensing authorities.

Governing Law and Entire Agreement

This Agreement shall be governed by the laws of the state in which the Property is located. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

Notices

Notices shall be effective when delivered in person, by nationally recognized overnight delivery service, or by certified mail to the addresses set forth above, or to such other addresses as either party shall designate by written notice.

Acknowledgment

By signing below, Client and Broker acknowledge that they have read and understood this Agreement, that Broker has disclosed any known conflicts and license information as required, and that the parties agree to be bound by the terms herein.

Client Printed Name:

By (Signature):

Date:

Broker / Firm Printed Name:

By (Signature):

Date:

Enter text✕

What a Real Estate Client Agreement Covers

A Real Estate Client Agreement is a written contract that defines the working relationship between a property owner or buyer (the client) and a real estate professional or brokerage. It identifies parties, scope of services (listing, buyer representation, marketing), exclusivity periods, compensation, termination rights, and dispute resolution. The agreement establishes fiduciary duties, disclosure obligations, and deliverables so both sides understand timing, required documents, and who has authority to act on the client’s behalf.

Why a Clear Client Agreement Matters

A properly drafted agreement reduces misunderstandings, clarifies commission and duties, and creates enforceable expectations between client and agent under state contract law. It documents consent, key dates, and remedies in case of breach.

Why a Clear Client Agreement Matters

Who Typically Signs a Real Estate Client Agreement

The agreement is used by agents, brokers, sellers, buyers, and property managers in residential and commercial transactions.

  • Real estate brokers and licensed agents representing sellers or buyers in a transaction.
  • Property owners or prospective buyers who engage broker services and authorize marketing or showing.
  • Attorney or authorized corporate representative signing for an entity involved in the sale or acquisition.

Ensure the signer has authority (owner, authorized officer, power of attorney) and that identity and capacity are recorded.

Core Elements to Include in the Agreement

A professional client agreement organizes expectations and reduces downstream disputes by describing roles, fees, timelines, and legal protections.

Parties

Full legal names and entity types for client and broker to eliminate ambiguity and support enforceability.

Scope

Detailed description of services provided (listing, showings, negotiation, marketing) and any excluded services.

Compensation

Commission formula, timing of payment, who pays closing costs, and treatment of buyer procured by broker.

Term

Effective date and expiration or automatic renewal terms, plus notice procedures for termination.

Authority

Limits on agent authority—e.g., signing offers, accepting deposits, or binding seller in communications.

Legal Terms

Governing law, dispute resolution (mediation/arbitration), confidentiality, and indemnification clauses.

Essential Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Timestamps, IP address, and action log
Authentication: Email, SMS code, or advanced signer authentication
Regulatory: ESIGN and UETA compliant
HIPAA Options: BAA available where required
Records: Tamper-evident signed PDF output

Step-by-Step: Filling Out a Client Agreement

Follow these steps in order to create a complete, legally useful client agreement and prepare it for signature.

  • 01
    Gather IDs: Collect government IDs and entity formation documents for all parties.
  • 02
    Populate Core Fields: Enter names, address, scope of services, compensation, and dates.
  • 03
    Attach Exhibits: Add property descriptions, disclosures, and MLS authorization if applicable.
  • 04
    Review & Sign: Confirm terms with client, then execute and retain signed copies.

Configuring an Online Signing Workflow

Set up your digital process to ensure correct routing, authentication, and record retention for signed agreements.

Field Configuration
Signature Signer, date stamp
Authentication Email or SMS code
Routing Sequential or parallel signer order
Retention Audit trail and signed PDF storage

Where to Send and File the Agreement

Determine distribution and filing destinations based on role and recordkeeping requirements.

  • Client Copies: Provide each signer a final executed PDF
  • Broker Records: Store master copy in brokerage file
  • MLS Submission: Upload listing authorization when listing is active
  • Title / Closing: Send executed agreement to title or escrow

Digital Signing and Integration Considerations

Choose a platform that supports required authentication, audit trails, and integrations with core systems.

  • CRM Integration: Salesforce, Microsoft 365, NetSuite
  • File Formats: PDF, DOCX, HTML supported
  • Storage: Box, Google Drive, Egnyte

Ensure the chosen solution preserves signed PDFs, audit logs, and can export records for compliance or closing.

Key Timing and Deadline Considerations

Track deadlines for disclosures, agreement term, tax reporting, and closing milestones to avoid statutory or contractual penalties.

Agency Disclosure Timing:

Provide required disclosure at first substantive contact

Listing Term:

Agreement specifies start and end dates for exclusivity

Earnest Money:

Deposit deadlines set by contract or local custom

Closing Date:

Date when title transfer and commission payment typically occur

Tax Forms:

Provide W-9 on request; issue 1099 per IRS deadlines

Common Risks and Potential Consequences

Breach Damages: Monetary liability possible
Commission Disputes: Loss of fee or litigation risk
Recording Issues: Unnotarized deeds may be rejected
Tax Penalties: Incorrect 1099s trigger IRC §6721 penalties
MLS Sanctions: Violations can result in fines
Privacy Breach: HIPAA or state data breaches risk fines

Typical eSignature Pricing and Feature Comparison

Compare basic pricing, bulk-send capability, audit trail availability, HIPAA support, and envelope limits across vendors to match your real estate workload.

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 Varies Varies Varies Varies
Bulk Send Yes (Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-world Examples of Online Execution

These customer experiences show typical benefits when agreements are executed digitally and retained securely.

Martin Properties

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

  • Mobile signing reduced in-person meetings and sped closings by eliminating travel time.
  • We process and execute documents online with compliance and security across devices, improving turnaround and client satisfaction.

Optica Ventures

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

  • Digital delivery allowed faster investor signatures.
  • The team improved cycle time for funding documents and kept a complete audit trail for investor compliance.

Frequently Asked Questions about Client Agreement Execution

Answers to common legal, execution, and storage questions for real estate client agreements executed electronically.


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