Is an electronic signature valid?

Yes. Electronic signatures meet the ESIGN Act (15 U.S.C. ch. 96) and UETA requirements when the signer shows intent, consents to e‑records, attribution is clear, and the record is retained.

Do I need a notary for this agreement?

Generally no for a representation agreement; notarization is seldom required unless state law or related documents (deeds) demand it. Check local rules for specific situations.

What if the signatory name differs from tax records?

Mismatched names can trigger backup withholding or incorrect 1099 reporting. Use the entity's exact legal name and confirm taxpayer identification information before finalizing.

How do I prove who introduced a deal?

Document introductions in dated, signed communications or in the agreement's introduction clause; preserve email trails and dated MLS entries as corroborating evidence.

Can I use remote online notarization (RON)?

RON is available in most states with differing requirements. Verify the state's RON rules and retention obligations before relying on a RON session for documents that must be notarized.

How long should I keep the executed agreement?

Retain for a minimum of 3 years for tax purposes (IRC §6501(a)); retain up to 6 years for HIPAA‑related records and consider 7 years or more for major transactions.

Electronic Signature
Templates
Real estate
Real Estate Commercial Representation Agreement

Real Estate Commercial Representation Agreement

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

REAL ESTATE COMMERCIAL REPRESENTATION AGREEMENT

This Commercial Representation Agreement ("Agreement") is made and entered into as of by and between:

Parties

Client (Property Owner/Principal) Client Entity Type (check all that apply) Corporation LLC Individual Other Client Contact & Address Broker

Property Identification

Property Address Parcel / APN Number Legal Description

Scope of Engagement

Client hereby appoints Broker to act as Client's for the purpose of:

Type of Transaction (check all that apply) Sale Lease Exchange Other

Exclusivity and Term

This Agreement is: Exclusive Non-exclusive.

Effective Date Termination Date or Term Length

Broker Duties; Marketing; Confidentiality

Broker shall, in a commercially reasonable manner, market the Property, identify prospective purchasers or tenants, assist in negotiating terms, prepare customary marketing materials and coordinate showings. Broker shall deliver marketing subject to Client's written approval for any materials that identify the Client by name or disclose financial terms. Broker shall maintain commercially reasonable confidentiality regarding Client's proprietary information and shall not disclose confidential materials to third parties without Client's prior written consent except as required to effectuate a transaction or by law.

Marketing expense cap (Client prior approval required for expenses exceeding) Client acknowledges confidentiality obligations

Client Representations and Duties

Client represents and warrants that it has the full legal right and authority to enter into this Agreement and to grant Broker the authority requested herein. Client will provide Broker with all material information concerning the Property, grant Broker reasonable access for inspections and showings, and promptly notify Broker of any changes in ownership, listing status, or encumbrances materially affecting ability to complete a transaction.

Compensation; Commission

Client shall pay Broker a commission pursuant to the terms below. Commissions shall be earned and payable as described and are not contingent upon Broker's receipt of any proceeds beyond those specified.

Sale commission (as applicable) Lease commission structure When commission is payable Protection period (days) for transactions procured by Broker

If Client completes a sale, lease, renewal, extension, assignment or other transaction with a party introduced by Broker during the Term or within the Protection Period, Client shall be obligated to pay the agreed commission to Broker even if the transaction is structured to avoid payment.

Expenses; Reimbursements

Client shall reimburse Broker for out-of-pocket expenses reasonably incurred in marketing and performing services under this Agreement, subject to any prior approval requirement set forth above. Reimbursable expenses include, but are not limited to, brokerage sign costs, advertising, data fees, courier and travel expenses.

Expense approval threshold

Environmental and Zoning Disclosures

Client represents that to its knowledge the Property is in compliance with applicable zoning and land use regulations and that Client has disclosed known environmental conditions.

Hazardous materials present (Client represents yes) No hazardous materials known Zoning compliant Zoning issues disclosed

Termination; Default; Remedies

Either party may terminate this Agreement upon days' prior written notice to the other. Termination shall not relieve Client's obligation to pay commissions earned prior to termination or under the Protection Period. In the event of default by either party, the non-defaulting party may pursue all available legal and equitable remedies, including specific performance where appropriate.

Indemnification; Limitation of Liability

Client shall indemnify, defend and hold Broker harmless from any claims, losses, liabilities, damages and expenses arising out of Client's misrepresentations, breach of this Agreement, or the condition of the Property, except to the extent caused by Broker's willful misconduct. Broker's liability for any claim arising from this Agreement shall not exceed the total commissions paid to Broker under this Agreement.

Dispute Resolution; Governing Law

The parties shall attempt in good faith to resolve any dispute arising from or relating to this Agreement through negotiation. If negotiation fails, the parties agree to submit the dispute to binding arbitration in accordance with the parties' election here: Agree to arbitration. This Agreement shall be governed by the laws of the State of and venue for any judicial proceedings shall be in the county of .

Notices

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

Client Notice Address Broker Notice Address

Miscellaneous Provisions

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings. Any amendment or modification to this Agreement must be in writing and signed by both parties. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Acknowledgment

By signing below, the parties acknowledge that they have read and understood this Agreement, that they are authorized to bind the respective entities they represent, and that they enter into this Agreement voluntarily.

Client Printed Name:

By:

Date:

Broker Printed Name:

By:

Date:

What the Real Estate Commercial Representation Agreement Is

A Real Estate Commercial Representation Agreement is a written contract that defines the relationship between a broker or agent and a commercial property owner or prospective tenant. It sets the scope of services, exclusivity or non‑exclusivity, commission structure, term length, and responsibilities for marketing, negotiations, and closing. The document clarifies which party may bind the other, how commissions are earned and paid, and what notice or termination rights exist. Well‑drafted agreements reduce disputes over payments, authority, and post‑term obligations by documenting expectations and timelines.

Why a Clear Representation Agreement Matters

A properly drafted Real Estate Commercial Representation Agreement provides legal certainty on authority, commission entitlements, and duration while reducing litigation risk. It supports enforceability under federal e‑signature laws (ESIGN Act, 15 U.S.C. ch. 96) and state rules (UETA or state ESRA), and documents consent, attribution, and record retention required for electronic execution.

Who Typically Uses This Agreement

Each party should understand signing authority, termination rights, and how the agreement interacts with listing services and closing documents.

Commercial brokers and leasing agents who need defined commission terms and exclusive or non‑exclusive engagement details.
Property owners and landlords managing portfolios who require standard commission, marketing, and reporting obligations.
Institutional investors, asset managers, and tenant representatives who require detailed notice, confidentiality, and termination provisions.

Core Sections to Include in a Professional Agreement

A complete agreement organizes commercial representation into discrete sections that assign responsibilities, define compensation, and limit liability so parties can execute transactions with predictable outcomes.

Parties

Identify all legal entities and representatives by full legal name, business type, and contact information to ensure enforceability and correct tax reporting.

Scope of Services

Describe activities included (marketing, showings, tenant screening, negotiations) and any excluded services such as property management or maintenance.

Commission

Specify commission amount or formula, timing of payment, events that trigger payment, and whether commission survives termination for deals introduced during the term.

Term and Termination

Set start and end dates, renewal terms, notice periods, and conditions for early termination, including cure periods for breaches.

Confidentiality

Protect nonpublic deal terms and sensitive tenant or owner data; include permitted disclosures for advisors and legal compliance.

Representations and Warranties

State authority to enter the agreement, accurate property information, and any zoning or title disclosures required by law.

Essential Fields to Complete

Parties: Full legal names

Property: Street, city, state, ZIP

Scope: Services described

Compensation: Commission terms

Term: Start and end dates

Signatures: Printed name and date

Step‑by‑Step: Completing the Agreement

Follow these steps in order to prepare, review, and execute the agreement cleanly and consistently.

01

1. Gather details: Collect full legal names, property ID, and commission instructions.
02

2. Draft terms: Populate scope, term, and compensation sections clearly.
03

3. Review legally: Confirm authority, disclosures, and local requirements with counsel.
04

4. Execute: Sign electronically or in person and distribute executed copies to all parties.

How to Customize and Complete the Agreement Online

Set up a digital workflow that fits your review and approval process before sending for signature.

Field	Configuration
Signature	Require signing order and signer name validation
Authentication	Use email + SMS code or ID verification for high‑value deals
Conditional Fields	Show commission details only when exclusive listing selected
Audit Trail	Enable IP/timestamp capture for all signing events

Where to Send or File the Executed Agreement

After execution, route the signed agreement to the parties and retain a master copy for compliance and closing.

Broker Records: Keep an executed copy in the broker's transaction file for commission proof.
Owner Files: Deliver to property owner or asset manager for financial records and audit.
Escrow / Closing: Provide to closing agent when commission is paid through escrow disbursement.
Accounting: Share with accounting for 1099 reporting and commission tracking.

Distribution Options and Technical Requirements

Choose distribution channels that preserve the signed record and audit trail while matching recipient capabilities.

Email: PDF attachment with audit trail
Document Platform: Signed PDF stored in cloud repository
In‑person: Wet ink or kiosk signing retained in file

Typical Timelines and Notice Periods to Track

Commercial agreements often contain multiple time triggers; track each to preserve rights and avoid missed commission claims.

Effective Date:

Contract obligations begin on the Effective Date; use MM/DD/YYYY format

Exclusivity End:

Notice required per contract, commonly 30–90 days prior to termination

Commission Payable:

Often due at closing or lease commencement per agreement terms

Deal Introduction Window:

Survival clauses commonly protect introductions for 6–12 months after term

Record Retention:

Keep executed file for at least 3–7 years depending on tax and audit needs

Common Preparation Errors to Avoid

Failing to identify the exact legal entity for an owner leads to unenforceable commission claims or incorrect 1099 reporting.
Using vague commission language such as 'reasonable commission' creates disputes; state a concrete percentage or formula.
Neglecting to document who introduced a tenant or buyer can result in competing commission claims between brokers.
Sending unsigned drafts for reliance creates confusion; only distribute fully executed copies as binding records.

Key Risks and Consequences of Errors

Breach Claims: Damages exposure

Commission Disputes: Lost or delayed payments

Invalid Signatures: Enforceability challenges

Incorrect Tax Forms: Backup withholding risk

Missed Deadlines: Forfeited claims

Recordkeeping: Audit penalties

eSignature Pricing Comparison for Executing Agreements

Standard plan pricing and feature availability vary by vendor and plan tier; signNow appears first for direct comparison of common capabilities.

	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
HIPAA Compliant	Yes	Yes	Yes	No	No

FAQs and Troubleshooting for the Agreement

Frequently asked questions address execution, enforceability, signatures, and common operational issues for commercial representation agreements.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures meet the ESIGN Act (15 U.S.C. ch. 96) and UETA requirements when the signer shows intent, consents to e‑records, attribution is clear, and the record is retained.
Do I need a notary for this agreement?
Generally no for a representation agreement; notarization is seldom required unless state law or related documents (deeds) demand it. Check local rules for specific situations.
What if the signatory name differs from tax records?
Mismatched names can trigger backup withholding or incorrect 1099 reporting. Use the entity's exact legal name and confirm taxpayer identification information before finalizing.
How do I prove who introduced a deal?
Document introductions in dated, signed communications or in the agreement's introduction clause; preserve email trails and dated MLS entries as corroborating evidence.
Can I use remote online notarization (RON)?
RON is available in most states with differing requirements. Verify the state's RON rules and retention obligations before relying on a RON session for documents that must be notarized.
How long should I keep the executed agreement?
Retain for a minimum of 3 years for tax purposes (IRC §6501(a)); retain up to 6 years for HIPAA‑related records and consider 7 years or more for major transactions.

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