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Real Estate Professional Service Disclosures

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REAL ESTATE PROFESSIONAL SERVICE DISCLOSURES

This Real Estate Professional Service Disclosures form documents disclosures of agency, compensation, conflicts, and other material terms between the parties listed below in connection with services relating to the property identified herein. Client Name:

PARTIES AND CONTACT INFORMATION

Real Estate Professional (Agent/Broker):

PROPERTY IDENTIFICATION

AGENCY RELATIONSHIP AND DUTIES

The Professional hereby discloses the nature of the agency relationship and the duties owed to the Client. The Professional's duties include, as applicable: loyalty, reasonable care and skill, disclosure of material facts, accounting for funds, and confidentiality of client information except as limited below or required by law.

Select the agency relationship being offered or confirmed (initial all that apply):





Dual agency consent: By checking the box and signing below, Client consents to dual or limited dual agency when the Professional or the Professional's brokerage represents or is engaged to represent both parties to the same transaction, subject to applicable statutes and affirmative written consent. Client consents:

COMPENSATION, REFERRAL FEES, AND THIRD-PARTY PAYMENTS

Compensation arrangement (describe amount, percentage, or method):



Referral fees or cooperative compensation to other licensees: Does the Professional or Brokerage anticipate sharing compensation or receiving referral fees? Yes: No:

CONFLICTS OF INTEREST AND PRIOR DEALINGS

The Professional must disclose any material relationships, prior representations, or financial interests that may affect representation. Does the Professional have known conflicts or prior dealings relevant to this transaction? Yes: No:

CONFIDENTIALITY, RECORDS, AND DISCLOSURE

The Professional will keep confidential information received from the Client, except as otherwise authorized in writing by the Client, required by law, or necessary to perform duties in this transaction. Confidential information does not include facts subject to public record, or information that must be disclosed to the other party to comply with law or to prevent fraud.

Client acknowledges exceptions to confidentiality and consents to disclosures as necessary to effectuate the transaction or to comply with law:

ELECTRONIC COMMUNICATIONS AND RECORDKEEPING

Client consents to receiving communications, documents, disclosures, and invoices by electronic means (email, text, or secure portal) where permitted by law. Client consent to electronic delivery: Client initials:

LIMITATIONS, DISCLAIMERS, AND SCOPE OF SERVICES

The Professional does not provide legal, tax, structural inspection, environmental, or surveying services unless separately engaged in writing. Client is advised to obtain independent professional advice for matters outside the Professional's scope. The Professional's liability for negligent performance of duties shall be subject to applicable law and the brokerage's errors and omissions coverage.

DISPUTE RESOLUTION AND GOVERNING LAW

Any dispute arising out of or relating to this disclosure or the professional services provided hereunder shall be resolved by the dispute resolution mechanism chosen by the parties below. Governing law:



ACKNOWLEDGMENTS AND CLIENT AUTHORIZATIONS

By signing below, Client acknowledges receipt of this disclosure, affirms that the Client has read and understands the duties and compensation arrangements, and authorizes the Professional to perform the services described. Client further acknowledges the opportunity to ask questions and to obtain independent legal or tax advice prior to signing.

Date of disclosure delivery to Client:

ENTIRE AGREEMENT

This Disclosure, together with any executed engagement letter or agency agreement between the parties, constitutes the entire agreement regarding the matters disclosed herein and supersedes all prior written or oral understandings related to such matters. Amendments must be made in writing and signed by the parties.

Client:

By:

Date:

Real Estate Professional / Broker:

By:

Date:

Enter text✕

What the Real Estate Professional Service Disclosures Are

The Real Estate Professional Service Disclosures are standardized documents used to disclose the professional services a licensee, broker, or related party will provide during a real estate transaction. They identify the parties, describe the scope of services, set expectations for commission and compensation, and record any material relationships or conflicts of interest. These disclosures support transparent communication between sellers, buyers, landlords, tenants, and agents and often accompany listing agreements, buyer broker agreements, or lease documents to satisfy state disclosure rules and professional ethics requirements.

Why these disclosures matter for transactions

Clear service disclosures reduce misunderstandings, document compensation and duties, and help meet state licensing and consumer-protection requirements.

Why these disclosures matter for transactions

Who completes and reviews these disclosures

Each party should keep a signed copy for records and provide one to their broker or legal advisor as needed.

  • Real estate agents and brokers responsible for client representation and commission disclosures.
  • Property managers or leasing agents when describing services for rentals and tenant placement.
  • Home sellers or buyers reviewing agent duties and compensation before signing listing or buyer agreements.

Core sections commonly found in the disclosure

Most Real Estate Professional Service Disclosures follow a consistent structure to ensure required information is captured and easy to review.

Parties

Identifies each client and the licensee or firm providing services, including full legal names and brokerage affiliation to avoid ambiguity in representation.

Scope of Services

Lists specific duties such as marketing, showings, negotiations, lease management, and any limited or specialized services the professional will perform.

Compensation

Specifies commission rates, flat fees, referral fees, and how expenses will be allocated or reimbursed during the transaction lifecycle.

Conflicts & Relationships

Discloses material relationships, dual agency possibilities, referral arrangements, or business interests that could influence advice or recommendations.

Duration and Term

States effective and expiration dates for the agreement, and conditions for renewal, termination, or automatic extension.

Acknowledgment

Provides signature blocks, dates, and space for initials where parties confirm receipt, understanding, and consent to the disclosed terms.

Essential details to include

Client Name: Full legal name
Agent Name: Licensee name
Brokerage: Firm name
Service List: Scope summary
Compensation: Commission terms
Effective Date: MM/DD/YYYY

Step-by-step: completing the disclosure

Follow a clear sequence when preparing, reviewing, and signing the disclosure to ensure completeness and legal compliance.

  • 01
    Prepare the form: Use a current state-approved template or broker-provided form.
  • 02
    Fill core fields: Enter names, addresses, dates, and compensation details accurately.
  • 03
    Review for conflicts: Disclose any dual agency or referral relationships.
  • 04
    Sign and distribute: Obtain signatures and provide copies to all parties and the brokerage.

Configuring an online workflow for disclosures

Set up a consistent digital workflow to capture signatures, track distribution, and preserve an auditable record.

Field Configuration
Signer Order Sequential or parallel routing
Authentication Method Email link, SMS code, or KBA
Required Fields Make names, dates, compensation mandatory
Audit Trail Enable IP, timestamp logging

Typical routing and submission flow

A clear submission path reduces delays and ensures each party receives the disclosure early in the transaction lifecycle.

  • Draft by Agent: Agent completes initial disclosure fields.
  • Broker Review: Broker or compliance team verifies content.
  • Send to Client: Deliver via secure eSignature link or email.
  • Archive: Store signed copy in brokerage records.

Digital signing and platform considerations

Ensure the platform offers record retention, tamper-evident signing, and the ability to attach supporting documents so the disclosure remains verifiable over time.

  • Document formats: PDF, DOCX supported
  • Integrations: CRM and storage links
  • Authentication: Email, SMS, or KBA

Timing: when to provide and finalize disclosures

Provide disclosures as early as practical and before the parties enter binding listing, purchase, or lease agreements to allow informed consent.

At engagement:

Deliver before signing listing or buyer representation agreements.

Before offer:

Provide sellers or buyers prior to offer acceptance when relevant.

At closing:

Ensure final signed copy is available for closing or lease execution.

Broker retention:

Brokerages typically retain copies per state law and firm policy.

Record updates:

Amend and re-sign if material terms change.

Common mistakes to avoid

  • Using shorthand or nicknames for legal names which leads to mismatched payment and title records and delays in closing.
  • Leaving compensation language vague or inconsistent with MLS listings, which can trigger commission disputes or broker interventions.
  • Failing to disclose dual agency or referral agreements that create perceived or actual conflicts of interest.
  • Not preserving the signed disclosure in a tamper-evident format, which complicates audits or regulatory inquiries.

Risks and potential consequences of errors

Contract disputes: May arise from unclear scope
Regulatory fines: State licensing penalties possible
Commission claims: Disagreements over fee entitlement
Delayed closings: Corrections can postpone settlement
Professional liability: Errors can trigger malpractice claims
Record challenges: Unsigned or altered disclosures lose evidentiary weight

Real-world examples of disclosure use

Practical examples show how disclosures work in common brokerage and property-management scenarios.

Martin Properties

A mid‑sized brokerage digitized disclosures to close deals remotely

  • Rapid mobile signing enabled remote closings
  • Tim Martin, Founder, said the platform let his team execute forms online with compliance and security, reducing in‑person steps and accelerating settlement timelines reliably.

Optica Ventures

An investor group standardized a disclosure template for rental acquisitions

  • Consistent language simplified review across properties
  • Brian Fitzgibbons, COO, noted the interface made it easy for both staff and investors to review and sign disclosures quickly.

Practical tips for accurate and efficient completion

Adopt consistent processes to reduce errors and support compliance across transactions.

Use standardized templates
Maintain broker-approved templates that incorporate state-required language and are reviewed regularly to reflect rule changes and avoid inconsistent clauses.
Verify names and dates
Confirm full legal names and effective dates against identification and formation documents to prevent payment delays and title inconsistencies.
Document consent clearly
Ensure consumer-facing disclosures include any required ESIGN consumer disclosure for electronic records and retain proof of consent when applicable.
Store signed copies securely
Preserve signed disclosures in a tamper-evident format with audit trails and backups to support regulatory or litigation needs.

eSignature vendor comparison for managing disclosures

This table compares common capability and pricing points across leading eSignature providers; signNow is listed first per platform comparisons.

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 vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about these disclosures

Answers below address common legal, procedural, and technical questions encountered when preparing and executing Real Estate Professional Service Disclosures.


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