Is an electronic disclosure legally valid?

Yes, electronic disclosures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws where adopted, provided intent, consent, attribution, and record retention requirements are met.

What if a party signs the wrong amount?

If discovered before closing, prepare an amendment or corrected disclosure signed by all parties. For executed closings, consult counsel; errors can trigger settlement adjustments or indemnity obligations.

Are notarization or witnesses required?

Most commission disclosures do not require notarization or witnesses, but state or lender rules may require notarization for related documents; verify with the state real estate commission or escrow agent.

Who must sign the disclosure?

Typically the client (seller or buyer) and the broker or authorized brokerage representative must sign. Include agent names and license numbers to ensure traceability.

How should electronic copies be stored?

Store signed PDFs with an audit trail showing signer identity, timestamps, and IP or authentication method. Retain per applicable retention timelines and for any audit windows.

What state differences should I check?

States vary on required disclosure language, timing for delivery, and agency notice rules. Consult the state real estate commission for mandatory forms or specific statutory language.

Electronic Signature
Templates
Real estate
Real Estate Commission Disclosure

Real Estate Commission Disclosure

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

REAL ESTATE COMMISSION DISCLOSURE

Transaction & Property Identification

Transaction Type: For Sale For Lease

Property Address Parcel / APN Number Legal Description

Identifying Parties

Listing Brokerage

Listing Broker License No.

Listing Agent

Agent Phone

Agent Email

Selling Brokerage (Cooperating Broker)

Selling Broker License No.

Selling Agent

Seller & Buyer Contact Information

Seller Full Name Seller Contact Address

Seller Phone

Seller Email

Buyer Full Name Buyer Contact Address

Buyer Phone

Buyer Email

Commission Terms

Total Commission: % or $

Proposed Split: Listing Broker % — Cooperating Broker %

Other Compensation or Bonuses (describe)

Commission Payable By: Seller Buyer Other:

Commission Payable / Due: on closing or transfer or upon earlier written agreement. Closing Date: ,

Disclosures & Acknowledgments

Brokerage Relationship (select all that apply): Listing Broker/Agent Selling/Buyer Broker Dual Agent Transaction Broker

Dual Agency / Conflicts: Broker may act as dual agent if both parties consent No dual agency

Broker to Receive Referral Fee or Other Payments from Third Parties: Yes No Amount if any: $

Material Property Disclosures: Lead-based paint present No lead-based paint known

Mold or Water Intrusion: Yes No

Prior Damage or Repairs (describe)

Legal Terms

Payment of Commission: Commission described above is a contractual obligation of the party identified as payer or as otherwise agreed in a separate compensation agreement between the broker and that party. Commission is earned upon closing and transfer of title, unless otherwise expressly provided in a written agreement executed by the broker and the party obligated to pay.

Cooperation and MLS Offers of Compensation: Where an offer of compensation to cooperating brokers exists, that offer may be withdrawn only in accordance with the cooperating broker rules under any applicable listing service or written agreement.

Termination; Remedies: If the transaction fails due to default of a party who is obligated to pay commission, the broker may pursue all remedies available at law or equity to recover commission and related costs, including but not limited to specific performance, damages, or recovery from earnest money consistent with written agreements.

Indemnification: Each party agrees to indemnify and hold harmless the brokers and agents from claims, liabilities, and expenses (including reasonable attorney fees) arising from that party's breach of this disclosure or related compensation agreements, except to the extent caused by the broker's gross negligence or willful misconduct.

Governing Law: The validity, interpretation, and enforcement of this disclosure shall be governed by the laws of the state specified below.

Governing State

Entire Agreement and Severability: This Commission Disclosure, together with any separate written compensation agreements, constitutes the entire agreement among the parties with respect to compensation disclosed herein. If any provision is held unenforceable, all remaining provisions shall remain in full force.

Acknowledgment

By signing below, Seller and Buyer acknowledge receipt of this Real Estate Commission Disclosure prior to or at the time of entering into the purchase agreement, understand the compensation arrangements described above, and acknowledge that commission rates and amounts are negotiable between the parties and their brokers.

Seller:

By:

Date:

Buyer:

By:

Date:

What the Real Estate Commission Disclosure Is and When it Applies

A Real Estate Commission Disclosure is a written statement that sets out how brokers and agents will be compensated for a transaction, including commission rates, who pays the commission, and whether fees are shared among brokers. The disclosure documents the parties' understanding of broker compensation for listing, selling, buyer representation, or referral services and is used to inform clients, avoid conflicts, and create a record should disputes arise. While formats vary, the core purpose is transparency about payment terms tied to the brokerage relationship and any contingency-based compensation.

Why a Clear Commission Disclosure Matters

A clear disclosure protects consumers and licensees by documenting compensation expectations, reducing disputes, and facilitating regulatory compliance with state real estate commissions and consumer-protection rules. It also creates evidence of consent to the broker’s compensation arrangement for enforcement or audit purposes.

Who typically completes and receives this disclosure

Other stakeholders—transaction coordinators, escrow officers, and compliance teams—use the form for recordkeeping and to verify payment flows at closing.

Listing brokers delivering seller-side compensation details and shared-broker arrangements.
Buyer’s brokers documenting buyer service fees, rebates, or cooperative commission splits.
Title companies and lenders that may require confirmation of compensation for closing workflows.

Step-by-step: Completing the Commission Disclosure

Follow these steps in order to create a clear, enforceable disclosure and to reduce downstream reconciliation or compliance issues.

01

Prepare details: Gather broker, agent, and client information before filling fields.
02

Define compensation: Enter commission percentage, flat fees, and any conditional payments.
03

Assign payor: Record who pays and who receives commissions at closing.
04

Execute signature: Have all parties sign and date; retain a signed copy for records.

Essential elements included in a professional disclosure

A complete disclosure addresses compensation mechanics, timing, split arrangements, and consent from each client. Well-structured disclosures lower ambiguity and support closing, audit, and compliance workflows.

Parties

Full identification of brokerages, agents, and clients, including license numbers and contact information to ensure the document ties to licensed entities and specific transaction parties.

Compensation

Clear statement of commission formula or flat fee, any minimums, and whether commissions apply to lease renewals, additional services, or referral arrangements.

Payment source

Whether commission is paid by seller, buyer, third party, or deducted from closing proceeds; note cases where payment depends on title or escrow disbursement.

Split details

How commissions are split among listing and selling brokers or teams, including percentage allocations and conditions for sharing or withholding.

Contingencies

Conditions under which commissions are earned, reduced, or forfeited (e.g., sale contingency failures, buyer default, or contract termination).

Signatures

Signature blocks for all parties with dated acceptance and any required witness or notary sections when mandated by state law or lender requirements.

Required information typically present on the form

Broker ID: State license number

Agent ID: Agent license number

Client name: Full legal name

Property address: Street, city, state, ZIP

Commission terms: Percentage or flat fee

Signatures: Signed and dated

Consequences of incorrect or missing disclosures

Regulatory discipline: License sanctions

Contract disputes: Payment litigation

Closing delays: Escrow holds

Financial penalties: Fines by state commission

Indemnity claims: Broker liability

Withheld funds: Escrow adjustments

Common pitfalls to avoid when preparing this disclosure

Using vague compensation language such as 'reasonable commission' rather than a numeric rate or fixed amount, which can lead to disputes and enforcement challenges.
Failing to include license numbers or legal entity names; incomplete identification hinders regulatory verification and may delay payment to brokers.
Not securing signed acceptance before marketing a property or cooperating with other brokers, exposing the brokerage to claims that compensation terms were never agreed.
Relying on inconsistent digital and paper copies without a single retained signed record, increasing the risk of conflicting versions at closing.

Where the completed disclosure goes in a typical transaction

The disclosure follows a standard flow: creation by the broker, signature by the client, distribution to cooperating brokers and title, and retention in transaction records.

Create document: Broker prepares disclosure for the listing or buyer agreement.
Obtain signatures: Client and broker execute the form using permitted signature methods.
Share copies: Provide signed copies to cooperating brokers and escrow/title.
Store record: Retain the signed disclosure in the transaction file.

How to set up an online disclosure workflow

Configure a consistent template, required fields, and routing so disclosures are completed reliably and integrated into closing workflows.

Field	Configuration
Template	Create a reusable disclosure template with mandatory fields.
Required fields	Enforce license, names, property, and commission fields.
Routing order	Set signer order: client then broker then cooperating broker.
Retention	Automatically archive signed PDFs to transaction folder.

Digital signing considerations and platform requirements

Platforms vary: some provide bulk send, advanced fields, or RON support. For example, signNow supports integrations such as Salesforce, Microsoft 365, NetSuite, Google Workspace, Box, Procore, and accepts PDF and DOCX formats while retaining a complete audit trail for each signed disclosure.

File formats: PDF, DOCX supported
Integrations: CRM and cloud storage
Authentication: Email, SMS, or stronger

Timing to prepare, present, and retain the disclosure

Timely presentation and signature reduce disputes and ensure compliance with state agency expectations. Electronic presentation is valid under federal and state e-signature laws when requirements are met.

At listing agreement:

Provide disclosure when the listing or buyer agency agreement is presented.

Prior to marketing:

Deliver terms before the property is marketed or shown, where state rules require.

Before closing:

Confirm final commission terms before closing escrow.

Retention start:

Retention begins on the signed effective date of the disclosure.

Electronic validity:

eSignatures are legally valid under ESIGN (15 U.S.C. §7001) when requirements are met.

Practical tips for accurate, efficient disclosures

Adopt consistent templates and a review checklist to reduce errors and speed processing across multiple transactions.

Use a standard template

Maintain a single authoritative template that includes mandatory fields, version control, and a changelog. Train agents to use that template to prevent ad hoc language that creates ambiguity.

Enforce required fields

Configure online forms so critical fields (license numbers, commission amounts, payor/payee) are mandatory to avoid incomplete disclosures that delay closing.

Retain signed copies

Store signed PDFs with audit trails in a centralized transaction file for at least the recommended retention period to support audits and dispute resolution.

Coordinate with title and escrow

Provide final signed disclosures to title/escrow early to verify funds flow and to prevent last-minute scrubs that can hold up closings.

Frequently asked questions about the Real Estate Commission Disclosure

Answers to common questions on validity, corrections, signatures, and retention to help brokers, agents, and clients avoid common compliance and closing issues.

Need help? Contact support

Is an electronic disclosure legally valid?
Yes, electronic disclosures are generally enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws where adopted, provided intent, consent, attribution, and record retention requirements are met.
What if a party signs the wrong amount?
If discovered before closing, prepare an amendment or corrected disclosure signed by all parties. For executed closings, consult counsel; errors can trigger settlement adjustments or indemnity obligations.
Are notarization or witnesses required?
Most commission disclosures do not require notarization or witnesses, but state or lender rules may require notarization for related documents; verify with the state real estate commission or escrow agent.
Who must sign the disclosure?
Typically the client (seller or buyer) and the broker or authorized brokerage representative must sign. Include agent names and license numbers to ensure traceability.
How should electronic copies be stored?
Store signed PDFs with an audit trail showing signer identity, timestamps, and IP or authentication method. Retain per applicable retention timelines and for any audit windows.
What state differences should I check?
States vary on required disclosure language, timing for delivery, and agency notice rules. Consult the state real estate commission for mandatory forms or specific statutory language.

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