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Real Estate Representative Agreement

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REAL ESTATE REPRESENTATIVE AGREEMENT

Parties

This Real Estate Representative Agreement (the Agreement) is made between:

Principal (Property Owner) — Name: Principal — Mailing Address:
Principal — Email:
Principal — Phone:
Representative (Broker/Agent) — Name: Representative — Brokerage / Firm:
Representative — License No.:
Representative — Contact:
Representative — Email:

Property Identification

The Principal engages the Representative with respect to the real property described below:

Property Address:
Parcel / APN:
Assessor Reference (if any):
Legal Description:

Appointment and Authority

Principal hereby appoints Representative as its exclusive real estate representative (exclusive agent) to market, negotiate and effect the sale or other disposition of the Property on the terms set forth in this Agreement. Representative shall have authority to: (a) list the Property; (b) show the Property to prospective buyers; (c) negotiate sale terms subject to Principal approval; and (d) execute documents on behalf of Principal solely to the extent expressly authorized in writing. Representative shall not accept or remit earnest money on behalf of Principal except as expressly authorized in writing.

Term

This Agreement commences on the Effective Date and continues until the Expiration Date, unless earlier terminated pursuant to this Agreement.

Effective Date:

Expiration Date:

Duties of Representative

Representative shall: use commercially reasonable efforts to market the Property; promptly present all offers to Principal in writing; comply with all applicable licensing laws and rules; maintain accurate records of marketing activity and offers; and provide regular written reports to Principal upon request. Representative shall disclose material facts known to Representative that affect the value or desirability of the Property.

Duties of Principal

Principal represents that it is the owner of the Property with authority to enter this Agreement; will provide accurate information about the Property; will make the Property reasonably available for inspections and showings; and will cooperate with Representative in negotiating and closing a transaction. Principal shall not engage other brokers for the sale of the Property during the term of exclusivity except as otherwise agreed in writing.

Compensation and Commission

Principal shall pay Representative compensation as follows. Compensation becomes earned and payable upon the Closing of a sale of the Property to a buyer procured by Representative or procured by any person during the term or within the protection period specified below.

Listing Price:
Commission (% of gross sale):
Or Flat Fee (optional):

Protection Period: Principal agrees that if, within days after termination of this Agreement, Principal closes a sale to a buyer introduced to the Property by Representative during the term, Representative's commission shall be payable as if the sale closed during the term.

Expenses and Disbursements

Principal shall be responsible for ordinary marketing expenses up to unless otherwise agreed in writing. Extraordinary expenses require prior written approval by Principal. Representative shall provide receipts upon request.

Disclosures and Environmental Matters

Representative will disclose to prospective buyers known material facts about the Property. Principal shall disclose any known defects or hazards. The parties acknowledge the following representations:

Lead-Based Paint (if Property built before 1978):
Known Mold or Water Intrusion:
Prior Structural or Fire Damage:
Other Known Material Defects:

Compliance with Laws and Licensing

Representative shall perform duties in compliance with applicable real estate licensing laws, fair housing laws, and other applicable statutes and regulations. Representative shall maintain necessary errors and omissions insurance and, upon request, provide proof of coverage to Principal.

Confidentiality

Representative shall maintain the confidentiality of non-public information received from Principal and shall not disclose such information except as required to perform duties under this Agreement or as required by law. Confidential information excludes information that becomes publicly available through no fault of Representative.

Indemnification; Limitation of Liability

Each party shall indemnify and hold harmless the other for claims arising from its own negligent acts, willful misconduct, or breach of this Agreement. Representative's liability for any claim arising out of this Agreement is limited to direct damages and shall not include consequential, punitive, or special damages.

Default and Remedies

A material breach by either party that is not cured within thirty (30) days after written notice shall constitute an event of default. Upon default, the non-breaching party may pursue all remedies available at law or in equity, including specific performance, injunctive relief, and recovery of costs and attorney fees incurred in enforcing this Agreement.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party designates in writing. Notice is effective upon personal delivery, or three (3) business days after deposit with the postal service by certified mail, or upon confirmed electronic transmission.

Principal — Notice Address: Representative — Notice Address:

Miscellaneous

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior agreements and understandings. Amendment: Any amendment must be in writing and signed by both parties. Assignment: Neither party may assign this Agreement without the prior written consent of the other, except that Representative may assign to its brokerage. Governing Law: This Agreement shall be governed by the laws of the State of without regard to conflict of law principles.

Additional Terms

Acknowledgment

Each party represents and warrants that it has the authority to enter into this Agreement, that its signatory is duly authorized, and that the execution and performance of this Agreement does not violate any other agreement to which it is a party.

Principal — Printed Name:

Name:

By:

Date:

Representative — Printed Name:

Name:

By:

Date:

Enter text✕

What a Real Estate Representative Agreement Is and When it Applies

A Real Estate Representative Agreement is a written contract that authorizes an individual or entity to act on behalf of a property owner in specified real estate matters, such as negotiations, closings, leasing, or management. Typical provisions define the scope of authority, term, compensation or commission, duties, limitations, and any recording or notarization requirements. The agreement clarifies who may sign documents, receive funds, and make decisions about the property, reducing ambiguity between principals, agents, third parties, and government offices.

Why this Agreement Matters for Transactions and Risk Control

A clear Representative Agreement prevents disputes over authority, ensures third parties can accept signatures, and documents consent for agents to negotiate or close deals. It protects owners by limiting powers and documenting duration and conditions.

Why this Agreement Matters for Transactions and Risk Control

Who typically signs or prepares this agreement

The Real Estate Representative Agreement is used by owners, brokers, property managers, and legal counsel to document delegated authority before a transaction or management act.

  • Individual property owners granting limited authority to an agent or broker for sales or leasing transactions.
  • Brokerage firms and property managers formalizing agent powers for rent collection, maintenance, and tenant relations.
  • Attorneys or firms acting as agents under limited real estate power of attorney for closing or title matters.

Use this agreement whenever an owner grants authority that third parties will rely on, including lenders, title companies, contractors, and municipal offices.

Primary parties and typical roles

Grantor — Property Owner

The owner (natural person or legal entity) who grants authority; signs to confirm scope, limits, and effective date. Identification must match legal records to avoid rejection by title or recording offices.

Representative — Authorized Agent

The named agent, broker, or attorney-in-fact who will act within defined powers. The representative must accept authority in writing and provide identity proof for notarization or eSignature verification when required.

Essential components to include in a professional agreement

A complete agreement balances clarity for third parties with protections for the owner; include six core sections shown below.

Parties

Full legal names and entity details for owner and representative, including business type and state of formation when applicable; include contact information and mailing addresses for official notices.

Scope of Authority

Specific, itemized powers (e.g., sign purchase agreements, accept deposits, execute deeds, manage rentals). Avoid open-ended language and state any expressly excluded actions.

Term and Effective Date

Start and end dates, or event-based termination. Clarify whether powers survive closing, transfer, or bankruptcy, and include MM/DD/YYYY formatting for unambiguous enforcement.

Compensation & Fees

If the representative is paid a commission, fee, or reimbursed expenses, describe rates, payment timing, and whether amounts are withheld from closing proceeds.

Notarization and Recording

State whether notarization is required and whether the agreement (or an attached POA) will be recorded; identify who bears recording and notary fees.

Limitations & Indemnity

Define express limits on authority, any ratification conditions, and indemnities protecting the owner against representative misconduct or unauthorized acts.

Step-by-step: completing and executing the agreement

Follow these steps to prepare, verify, and finalize a valid Representative Agreement that third parties can accept.

  • 01
    Draft: Specify parties, property, scope, term, and limitations clearly.
  • 02
    Review: Have legal or title counsel confirm language for local recording requirements.
  • 03
    Authenticate: Arrange notarization or secure eSignature with identity verification.
  • 04
    Distribute: Provide signed copies to title company, lender, and responsible parties.

Where executed copies typically go and who relies on them

After execution, route signed copies to parties who must rely on authority; maintain a signed original for recordkeeping.

  • Title Company: Receives agreement to accept agent signatures at closing.
  • Lender or Escrow: Needs evidence of authority before disbursing funds.
  • County Recorder: If recorded, the recorder accepts notarized instruments for the public record.
  • Owner and Agent: Each retains a signed copy for enforcement and audit.

Digital signing and verification options

For high-value closings or when recording is required, combine a notarized acknowledgement (in-person or RON) with an auditable eSignature trail that documents identity, timestamp, and IP.

  • Basic eSignature: Email + click verification
  • Enhanced ID: SMS or KBA verification
  • Notary / RON: Audio-video + credentialing

How to configure an online signing workflow

A reproducible workflow reduces errors and speeds signings; configure identity checks and distribution up front.

Field Configuration
Signature Type Require signer to add signature field and date
Authentication Use email + SMS code or KBA for identity
Order Set signing order: owner then agent then witness
Copies Auto-send signed PDF to all parties

Typical eSignature vendor pricing and capabilities for executing this agreement

Compare entry-level pricing, trial availability, bulk send, audit trail, HIPAA support, and envelope limits across common eSignature vendors.

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 (Business Premium+) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Consequences of incomplete or incorrect agreements

Invalid Authorization: May void agent actions
Recording Rejection: County recorder refusal
Title Exceptions: Title insurers may flag defects
Notary Errors: Cause delays or re-execution
Fraud Exposure: Increased liability risk
Transaction Delays: Closings may be postponed

Common mistakes when preparing a Representative Agreement

  • Using inconsistent names between the agreement, title, and identification documents, which often triggers title company rejections and delays.
  • Failing to specify a clear scope of authority, leading third parties to refuse acceptance or request a new power of attorney.
  • Overlooking notarization or state witness requirements when recording, which can prevent recording or invalidate the instrument.
  • Relying on a weak identity verification method for high-value closings instead of stronger authentication or notarization.

Practical tips for accurate and efficient completion

Follow these practices to reduce risk, speed acceptance by title parties, and preserve enforceability.

Verify identity and names
Confirm legal names on title, formation papers, and government ID; require the representative to provide photo ID at signing or use enhanced eID verification.
Limit and document scope
Specify exact actions permitted and include explicit exclusions to prevent unintended authority; attach exhibits for deeds or property lists when needed.
Choose appropriate authentication
For closings, prefer notarized acknowledgement or RON with audio-video record; for lower-risk tasks, a robust eSignature with audit trail may suffice.
Keep executed originals
Store original signed or notarized documents in secure records and distribute certified copies to title, escrow, and lender as needed.

Real-world uses and outcomes

These short examples show typical uses and how correct execution avoids common problems.

Martin Properties — Closing Efficiency

When Martin Properties needed remote signatures for a portfolio closing, they used a notarized representative agreement to enable an agent to sign on behalf of an absent owner

  • The agent completed required notarization remotely
  • The result avoided a 7–10 day travel delay and allowed the closing to proceed on schedule with clear title company acceptance.

Optica Ventures — Property Management

A small investor firm delegated rent collection and repair approvals via a representative agreement to streamline operations

  • The agreement listed narrow delegation limits
  • That clarity prevented disputes with tenants and ensured accounting records matched authorized actions.

Required information elements at a glance

Legal Name: Owner's full legal name
Agent Identity: Representative's full name
Property: Legal description or parcel ID
Authority Scope: Detailed permitted acts
Dates: Effective and termination dates
Execution: Signatures and notarization details

Frequently asked questions about execution and validity

Answers to common questions about acceptance, notarization, and eSignature validity for representative agreements.


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