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Real Estate Estate Agency Agreement

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REAL ESTATE AGENCY AGREEMENT

This Real Estate Agency Agreement ("Agreement") is entered into effective as of by and between the following parties.

PARTIES

PROPERTY IDENTIFICATION

APPOINTMENT AND AUTHORITY

Client hereby appoints Broker as the Client's exclusive agent to market and sell the Property on the terms set forth in this Agreement for the term below. Client authorizes Broker to take actions customarily performed by a listing broker, including marketing, scheduling showings, negotiating offers, and submitting offers to Client. The parties elect the following listing type:

TERM

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

COMPENSATION

Client agrees to pay Broker a commission equal to percent of the gross sales price, or a flat fee of (select applicable and insert amount). Commission is earned and payable upon closing of a transaction where Broker procured a ready, willing and able buyer or where a buyer procured by Broker closes, regardless of whether the sale closes through another broker, except as expressly provided herein.

BROKER DUTIES; CLIENT OBLIGATIONS

Broker will use reasonable efforts to market the Property at a listing price of or at such other price as Client may agree in writing. Broker will advertise, coordinate showings, present offers, and advise Client regarding negotiation of terms. Client shall make the Property available for showings, disclose material facts known to Client affecting value or desirability, and cooperate with Broker in marketing and sale efforts.

INSPECTION, CONTINGENCIES AND DISCLOSURES

Unless otherwise agreed in writing, the Buyer may conduct inspections and investigations during an inspection period of days from acceptance of an offer. Client must provide all known material property condition disclosures required by law.

TERMINATION; REMEDIES

This Agreement may be terminated by mutual written agreement or by either party for material breach if the breaching party fails to cure within days after written notice. If Client terminates in breach of an exclusive listing during the term or if a Buyer procured by Broker completes a purchase within the protection period of days after expiration, Broker's right to commission survives and is enforceable.

INDEMNITY; LIMITATION OF LIABILITY

Each party shall indemnify and hold the other harmless from and against losses arising from breach of representations, willful misconduct, or negligent acts. Broker's liability for any claim arising from this Agreement shall be limited to actual direct damages and shall not include consequential, punitive or incidental damages.

MISCELLANEOUS

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Notices: All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party designates in writing.

Entire Agreement: This Agreement, together with any addenda executed by the parties, constitutes the entire agreement between the parties and supersedes all prior agreements or understandings, whether written or oral.

SIGNATURES

Client Name:

Broker Name:

By:

By:

Date:

Title / Capacity:

Title / Capacity:

Date:

Enter text✕

What the Real Estate Estate Agency Agreement Is

A Real Estate Estate Agency Agreement is a written contract that establishes the legal relationship between a property owner (principal) and a real estate agent or broker. It defines the agent's authority to market, negotiate, and complete transactions on behalf of the principal, sets commission terms, clarifies exclusivity or open-listing status, specifies the property or portfolio covered, and records the agreement start and end dates. The document also allocates responsibilities, disclosure obligations, and termination rights so parties understand duties before listing or managing property.

Why a Clear Agency Agreement Matters

A formal agency agreement reduces misunderstandings about authority, commission, and disclosure duties, and creates a written record that supports enforcement. It also documents consent for electronic execution where permitted by law.

Why a Clear Agency Agreement Matters

Who Typically Completes This Agreement

Different participants prepare or sign agency agreements depending on the transaction and their roles.

  • Listing brokers and sales agents: Use the agreement to document exclusive or non-exclusive listing authority and commission structure.
  • Property owners and sellers: Sign to authorize marketing, showings, and negotiated offers under stated terms and limits.
  • Property managers and landlords: Formalize management scope, fees, tenant placement authority, and maintenance obligations.

Each signer should confirm identity, review commission and termination clauses, and retain a signed copy for compliance and recordkeeping.

Essential Parts to Include in a Professional Agreement

A well-drafted Real Estate Estate Agency Agreement groups legal and operational terms so responsibilities and compensation are clear for all parties.

Parties & Property

Identify the principal and agent by full legal name, and describe the property or portfolio using street address, legal description, or MLS ID as applicable for enforceability.

Agency Scope

Specify permitted activities (listing, showing, negotiating, advertising) and any limitations on price, offer acceptance, or delegated authority to sign transactional documents.

Term & Termination

State effective date, expiration or automatic renewal rules, and termination rights including cause, notice periods, and post-termination commission triggers.

Commission & Payment

Define commission percentage or flat fee, when it is earned and payable, who pays (buyer/seller/owner), and how split arrangements are handled.

Duties & Representations

List agent fiduciary duties, disclosure obligations, client representations, and any warranty or performance covenants the parties provide to one another.

Dispute Resolution

Specify governing law, venue, arbitration or mediation requirements, and attorney fee allocation to limit uncertainty in post-contract disputes.

Step-by-Step: How to Complete the Agreement

Follow a consistent sequence to ensure accuracy, authentication, and proper distribution when completing the agreement.

  • 01
    Review Terms: Read scope, commission, and termination sections for accuracy before entering data.
  • 02
    Fill Required Fields: Complete names, property details, amounts, and effective date in standardized formats.
  • 03
    Authenticate Signers: Verify identity and obtain signatures using chosen method (wet, RON, or electronic).
  • 04
    Distribute Copies: Provide executed copies to broker file, owner, and escrow or closing agent as appropriate.

Where to Send and Store Signed Agreements

After execution, route the agreement to internal and external stakeholders so the document is available for transaction processing and compliance.

  • Broker File: Keep original signed copy in the broker's records for regulatory and audit purposes.
  • Owner Copy: Provide the principal with an executed copy for their records and decision-making.
  • MLS / Listing Platform: Upload required listing authorization documents when adding property to MLS if the platform requires proof.
  • Escrow / Closing: Send agreement to escrow or closing agent for commission calculation and disbursement instructions.

Digital Signing and File Format Requirements

Use platform features that preserve audit trails, support common file formats, and meet your authentication needs.

  • File Types: PDF and DOCX are widely supported for signatures and retention.
  • Authentication: Use email, SMS code, or stronger methods for signer verification.
  • Integrations: Connect with MLS, CRM, or document storage platforms for workflow continuity.

Choose a platform that supports tamper-evident signed PDFs, audit trails, and the integrations needed for your brokerages and closing partners.

How to Configure an Electronic Signing Workflow

Set up signing fields and authentication that match the agreement's legal requirements and your internal controls.

Field Configuration
Signature Method Select e-signature or RON per law and client consent
Signer Authentication Choose email, SMS OTP, or KBA depending on risk
Conditional Fields Show fee or clause fields only when applicable
Audit Trail Retention Capture IP, timestamp, and actions for each signer

How This Agreement Differs from a Listing Agreement

Compare terms to clarify when an agency agreement serves broader representation versus a focused listing engagement.

Criteria Agency Agreement Listing Agreement
Purpose representation property marketing
Parties principal + agent seller + broker
Recording
Commission Focus ongoing representation sales transaction only

eSignature Vendor Comparison for Agency Agreements

Compare baseline commercial pricing and plan features for common eSignature providers; signNow is listed first per vendor 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 free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (plan-specific) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Common Risks and Potential Consequences

Commission Dispute: Litigation or arbitration over fees
Unclear Authority: Invalid offers or unauthorized commitments
Incomplete Fields: Ambiguity on parties or property
Invalid Signature: Potential unenforceability of contract
Missed Deadlines: Loss of termination or cancellation rights
Data Exposure: Unauthorized disclosure of confidential information

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA: HIPAA compliant; BAA required for PHI
FDA / 21CFR: 21 CFR Part 11 support for regulated records
Legal Validity: ESIGN and UETA compliant for U.S. transactions
Accessibility: WCAG 2.0 Level AA considerations

Real-World Examples of Agency Agreements in Use

These short examples show how organizations use electronic agency agreements in practice.

Optica Ventures (Brian Fitzgibbons)

A small investment firm adopted electronic agency agreements to speed execution and reduce paper handling.

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

Martin Properties (Tim Martin)

A regional brokerage used eSign to process management and listing agreements remotely.

  • Mobile and offline signing were required.
  • "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."

Practical Tips for Accurate and Efficient Completion

Adopt consistent practices to reduce errors, speed execution, and maintain compliance across transactions.

Standardize Templates
Use a single vetted template across the brokerage to ensure consistent language on commission, termination, and disclosure clauses.
Verify Signer Identity
Authenticate signers using appropriate methods (email, SMS OTP, or stronger verification) to establish attribution and reduce fraud risk.
Preserve Audit Trails
Keep full signing logs (IP, timestamps, actions) and store tamper-evident signed PDFs for dispute evidence.
Train Staff
Provide staff and agents with step-by-step checklists to ensure fields are completed in correct format and required exhibits are attached.

Frequently Asked Questions and Troubleshooting

Answers to common questions about validity, signing methods, and post-execution handling of agency agreements.


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