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Real Estate Fee Disclosure

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REAL ESTATE FEE DISCLOSURE

Broker Name:    License No.:

Broker Address:

PARTY AND PROPERTY IDENTIFICATION

Seller    Buyer    Other (specify):

APN / Parcel Number:

ITEMIZED FEES AND COMPENSATION

Listing Broker Commission:    Selling/Cooperating Broker Commission:

Total Commission or Fee Amount to Broker:

Transaction Coordination Fee:    Administrative Fee:

Marketing Fee / Advertising:    Flat Fee Option:

Referral Fee / Payments to Third Parties:

PAYMENT TERMS AND TIMING

Payment Due:    Method of Payment:

Late Payment or Collection Costs (if applicable):

DISCLOSURES, CONSENTS, AND AUTHORIZATIONS

Dual Agency / Designated Agency: Yes    No

Broker may receive referral compensation from third parties: Yes    No

Commission may be split with cooperating brokers or agents: Yes    No

Client authorizes deduction of agreed fees from sale proceeds or escrow funds: Yes    No

TERMS, DEFAULT, AND REMEDIES

Fees described in this disclosure are part of the contractual compensation arrangement between Broker and Client and are payable as set forth in the applicable brokerage agreement. Failure to pay agreed fees when due is a breach of the agreement and entitles the non-breaching party to pursue remedies including but not limited to recovery of the stated fees, interest, collection costs, and attorneys' fees to the extent permitted by law.

Refunds and offsets: Refund or partial refund of fees, if any, will be governed by the brokerage agreement and the circumstances surrounding termination of services. Any dispute concerning refund entitlement shall be resolved pursuant to the dispute resolution provisions set forth in the brokerage agreement or as otherwise agreed in writing.

GOVERNING LAW; ENTIRE AGREEMENT

This Fee Disclosure shall be governed by and construed in accordance with the laws of the state governing the brokerage agreement. This disclosure, together with the brokerage agreement and any addenda expressly incorporated by reference, constitutes the entire agreement between the parties with respect to fees and compensation and supersedes all prior representations and agreements concerning the same.

ACKNOWLEDGMENT AND CLIENT CONSENT

By signing below, Client acknowledges receipt of this Real Estate Fee Disclosure, affirms that the fee amounts and terms set forth above have been disclosed, and consents to the fees, splits, referrals, and payment mechanisms identified herein. Client further acknowledges that Broker has disclosed any material relationships or financial interests related to those fees.

Broker Name:

By:

Date:

Client Name:

By:

Date:

Enter text✕

What the Real Estate Fee Disclosure Is and When it Applies

A Real Estate Fee Disclosure is a written statement provided to transaction participants that itemizes fees, commissions, and third-party charges associated with a residential or commercial real estate transaction. It explains who pays each fee, the dollar amounts or calculation method, and any conditions or contingencies affecting payment. The disclosure helps meet state and federal consumer protection expectations, reduces later disputes about compensation, and can be incorporated into purchase, listing, or closing paperwork. It is commonly used by brokers, agents, buyers, sellers, and closing agents to ensure transparent fee allocation.

Why Clear Fee Disclosure Matters in Real Estate

Transparent fee disclosure reduces disputes, supports regulatory compliance, and documents consent to payments. It provides clear evidence of intent to pay, which aids enforceability under ESIGN and state contract law.

Why Clear Fee Disclosure Matters in Real Estate

Who Typically Prepares and Receives a Fee Disclosure

Real estate brokers, listing agents, buyers, sellers, escrow officers, and attorneys rely on fee disclosures to document who is responsible for each charge during a transaction.

  • Brokers and agents: Use disclosures to document commission splits, referral fees, and administrative charges for compliance and accounting.
  • Buyers and sellers: Receive an itemized statement to confirm which party pays closing costs, inspection fees, or HOA transfer fees.
  • Closing/escrow officers: Reconcile disclosed fees with settlement statements and ensure funds are handled according to instructions.

A properly completed disclosure aligns expectations and becomes part of the transaction record retained for audit and potential regulatory review.

Step-by-Step: Completing and Sharing the Disclosure

Follow these steps to prepare, confirm, and store the fee disclosure as part of the closing package.

  • 01
    Prepare draft: Populate party names, property, and fee lines accurately.
  • 02
    Review with parties: Send draft for review and correct any discrepancies.
  • 03
    Collect signatures: Obtain dated signatures from required signers.
  • 04
    Store record: File a copy with closing documents and retain per retention rules.

Key Elements Every Professional Disclosure Should Include

A complete disclosure combines factual fee details with signature evidence and routing instructions to make payment obligations clear and enforceable.

Parties

Full legal names for buyers, sellers, brokers, agents, and closing/escrow entities, enabling precise attribution and payment routing in settlement.

Property

Complete property address and legal description as used in the purchase agreement and recording documents to avoid attachment errors.

Fee Line Items

Itemized list of commissions, administrative fees, inspection, HOA, recording, and prorated taxes with amounts or calculation methods.

Payment Terms

Who pays, timing (at closing, prepayment), conditions for refund, and handling of shortfalls or escrow shortages.

Signature & Date

Dated signatures of responsible parties and, when required, broker or manager countersignature to confirm acceptance of terms.

Audit Trail

Record of versions, delivery method, and signer authentication details to support enforceability and dispute resolution.

Data and Security Details to Include on the Record

Transmission: TLS 1.2/1.3 in transit
Storage: AES-256 at rest
Certifications: SOC 2 Type II available
Regulatory: ESIGN and UETA compliant
Healthcare: HIPAA BAA available
Audit Trail: Timestamps and IP logging

Common Risks and Legal Consequences of Inaccurate Disclosures

Contract Disputes: Breach claims or escrow disputes
Regulatory Sanctions: Licensing fines or discipline
Tax Impacts: Incorrect reporting or withholding
Refund Obligations: Repayment or penalty exposure
Escrow Shortfalls: Delayed closings or extra costs
Reputation Risk: Consumer complaints or litigation

Frequent Mistakes to Avoid When Preparing the Disclosure

  • Using informal or abbreviated party names that do not match IDs or closing documents, causing payment misrouting and administrative delays.
  • Listing percentages without defining the calculation base or caps, which leads to miscalculation at settlement and potential disputes.
  • Failing to specify payer or timing for each fee line, resulting in unexpected charges at closing and last-minute negotiations.
  • Omitting version history or failing to date signed copies, which complicates enforcement and increases audit risk.

Typical Workflow for Issuing and Finalizing the Fee Disclosure

This sequence shows the common steps from drafting to archiving the final, signed disclosure.

  • Draft form: Populate fields and attach supporting invoices.
  • Share for review: Send to parties for comment and correction.
  • Collect eSignatures: Authenticate and capture signatures with audit trail.
  • Archive final: Store with closing package and access logs.

How to Configure an Online Disclosure Workflow

Configure these settings when building an electronic disclosure workflow to ensure accuracy and traceability.

Field Configuration
Authentication Email link, SMS code, or stronger KBA
Templates Prebuilt disclosure template with locked fee lines
Conditional Fields Show payer fields only when applicable
Storage Encrypted cloud archive with versioning

Technical and Integration Considerations for eSubmission

Real estate teams should confirm integrations, supported file formats, and signer authentication options before adopting an eSubmission workflow.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • File types: PDF, DOCX, HTML
  • Authentication: Email, SMS, or advanced methods

Confirm the platform supports your CRM and document storage systems, preserves audit trails, and aligns with any industry compliance needs before live use.

eSignature Vendor Comparison for Managing Fee Disclosures

Compare core pricing and capability dimensions relevant to executing Real Estate Fee Disclosures electronically; signNow appears first per vendor-ordering rules.

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

Frequently Asked Questions About Real Estate Fee Disclosures

Answers to common questions about validity, signatures, and practical issues when preparing or signing a fee disclosure.


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