Can this be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.

Are witnesses or notarization required?

Not always. Notarization is required for recordable documents like deeds; witness requirements vary by state and document type. Consult county recording rules for instruments intended for recordation.

How do I amend a signed Terms of Business?

Amendments should be in writing and signed by all parties. Use clear amendment language, include effective dates, and preserve originals and audit trails for enforceability.

How can I revoke or cancel it?

Follow the contract's termination clause. Provide written notice per the required notice period and retain proof of delivery. Termination does not necessarily void accrued commission rights.

What if a signature is disputed?

Retain the signing audit trail, authentication logs, and any RON recordings. These items support attribution and are critical evidence if enforceability is challenged.

How long should I retain the document?

Retain for at least the active term plus three years as a baseline; tax, HIPAA, or state rules may require longer retention—IRS and HIPAA minima apply.

Electronic Signature
Templates
Real estate
Real Estate Terms of Business

Real Estate Terms of Business

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

REAL ESTATE TERMS OF BUSINESS

Parties and Effective Date

This Terms of Business is entered into between:

Broker / Agent (Firm): Broker License Number: Broker Contact (address, phone, email): Client Name: Client Contact (address, phone, email):

Effective Date: . This agreement authorizes the Broker to act for the Client in respect of the property described below on the terms set forth herein.

Property Identification

Property Address: Parcel / APN Number: Legal Description:

Appointment and Scope

Client appoints Broker to act as the Client's agent for the purpose of marketing and procuring a buyer for the Property. The authority granted is:

Exclusive authority for the period from to

Non-exclusive authority (Client may appoint other agents). If non-exclusive, Broker is entitled to commission as set out below for any buyer introduced by Broker.

Commission and Financial Terms

Commission payable to Broker upon completion of sale shall be:

Commission Rate (percent): Minimum Commission (if applicable):

Commission is earned when the Buyer completes purchase (settlement/closing). Broker is also entitled to commission if: (a) a Buyer introduced by Broker contracts to purchase the Property within days after termination of this agreement; or (b) Client accepts an offer from a party introduced by Broker during the term.

Retainer / Marketing Advance (if required):

Client shall reimburse Broker for pre-approved marketing and third-party expenses incurred on Client's behalf. Unless otherwise agreed in writing, such expenses are due within days of invoice.

Marketing, Offers and Acceptance

Broker is authorized to advertise the Property, erect signage, present the Property on behalf of Client, and to receive offers. Broker shall promptly communicate all offers to Client. Client authorizes Broker to negotiate terms consistent with Client's written instructions.

Marketing Expense Budget (estimate):

Property Disclosures

Client must disclose known material defects in the Property. Please indicate presence and provide details where applicable.

Lead-based paint present: Yes No

Mold or water intrusion history: Yes No

Prior material damage (fire, flood, structural): Yes No

Warranties, Indemnity and Insurance

Client warrants that it is the legal owner or has authority to market the Property and that all information and disclosures provided to Broker are true and complete. Client will indemnify and hold Broker harmless from any claims, liabilities, losses, costs or expenses arising from Client's breach of these warranties or from inaccurate disclosures, except to the extent caused by Broker's gross negligence or willful misconduct.

Broker's liability for any claim arising from this agreement shall be limited to direct damages not exceeding the total commission actually received by Broker under this agreement. In no event shall Broker be liable for consequential or punitive damages.

Termination and Remedies

This agreement may be terminated by either party by giving days' written notice, subject to payment of accrued expenses and any commission payable in accordance with the holdover provisions above. Termination will not affect rights accrued prior to termination.

Confidentiality and Data

Broker will use and retain Client data only for the purpose of marketing the Property and will take commercially reasonable steps to protect confidential information. Broker may disclose information to prospective buyers and third-party service providers where necessary to market and effect a sale.

Dispute Resolution and Governing Law

Any dispute arising from this agreement shall be resolved by binding arbitration unless the parties mutually agree otherwise. The prevailing party in any arbitration or court proceeding shall be entitled to recover reasonable costs and attorneys' fees. This agreement shall be governed by the laws of the jurisdiction in which the Property is located.

Entire Agreement

This document constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations and understandings. Any amendment must be in writing and signed by both parties.

Acceptance

By signing below the parties acknowledge that they have read, understood and agree to be bound by these Terms of Business.

Client Printed Name:

By:

Date:

Broker / Agent Printed Name:

By:

Date:

What the Real Estate Terms of Business is and when it applies

A Real Estate Terms of Business is a written agreement that sets out the working relationship between a real estate professional or agency and a client. It typically defines the services to be provided, commission or fee arrangements, the length of engagement, confidentiality obligations, and who has authority to act on behalf of each party. For brokers and agents it clarifies exclusivity, marketing and advertising responsibilities, and how offers or negotiations will be managed. This document is commonly used at the start of a listing, buyer representation, or property management engagement.

Why a clear Terms of Business matters

A clear Terms of Business reduces disputes by documenting expectations, fees, and responsibilities in writing. It creates a contractual baseline for performance and helps both parties understand termination rights and notice periods.

Who completes and relies on this document

Typical users include listing agents, buyer agents, property managers, landlords, and real estate brokerages seeking a formal client engagement.

Real estate brokers and agents registering the client engagement and commission terms.
Property owners and buyers establishing representation, services, and exclusivity periods.
Property managers and landlords documenting fees, maintenance duties, and tenant placement responsibilities.

Stakeholders often include clients, authorized signers, cooperating brokers, and in some cases legal counsel or lending institutions for closing-related confirmations.

Essential elements to include in Real Estate Terms of Business

A professional Terms of Business should balance legal clarity with practical detail so parties understand scope, fees, and what triggers termination or commission.

Parties

Full legal names and entity types for each party, including registered business names and any DBA used in marketing or contracts.

Scope

A clear description of services (listing, buyer representation, property management), deliverables, and any excluded tasks or third-party costs.

Compensation

Commission structure, splitting arrangements, timing of payment, and conditions that trigger commission (e.g., ready, willing, and able buyer).

Term

Effective date, duration of the engagement, auto-renewal rules, and formal notice requirements to terminate the agreement.

Authority

Who can accept offers, sign amendments, or authorize expenditures on behalf of the client; include corporate signing rules if applicable.

Disclosures

Required state or federal disclosures, confidentiality clauses, data-sharing permissions, and any referral or dual agency acknowledgements.

Required information at a glance

Party Names: Full legal names

Property ID: Address or parcel number

Compensation: Commission terms

Term Dates: Start and end dates

Signatory Roles: Authorized signer listed

Disclosures: State-specific notices

Step-by-step: completing a Terms of Business

Follow these steps to prepare, sign, and distribute the Terms of Business so it is enforceable and auditable.

01

Prepare document: Populate parties, property, and compensation fields.
02

Review clauses: Confirm disclosures, termination, and authority sections.
03

Sign and date: Collect signatures from all authorized parties.
04

Distribute copies: Provide a signed PDF or secured link to each party.

How to configure an online signing workflow

Set up roles, authentication, and routing so each party receives the document in the correct order and format.

Field	Configuration
Signer order	Sequential or parallel routing
Authentication level	Email, SMS code, or ID check
Required fields	Make signature and date mandatory
Audit trail	Enable IP, timestamp, and actions log

Where to send or file a signed Terms of Business

After signing, route copies to designated parties and record any necessary instruments with the appropriate county or company records department.

Client copy: Send signed PDF to client email
Broker file: Upload to brokerage record system
Cooperating broker: Share with cooperating broker or agent
County records: Record only if instrument requires recording

Digital distribution and platform considerations

Choose a platform that supports secure PDFs, an audit trail, and the authentication level required by the parties.

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

Timelines and common deadlines to track

Track key deadlines so commission triggers, exclusivity windows, and disclosure deadlines are observed by all parties.

Provision of W-9:

Provide upon payer request

1099-NEC reporting:

Issue to recipients by Jan 31

Listing exclusivity end:

Honor stated end date or notice period

Notice to terminate:

Observe contractual notice requirements

Closing and settlement:

Coordinate with title and escrow schedules

Notarization and witness steps for authenticated execution

Follow an ordered process when witnesses or notarization are required to make documents recordable or self-proving.

01

Prepare document

Complete all fillable fields prior to signing

02

Identity verification

Signer provides ID per notary rules

03

Witness signing

Witnesses sign in presence of signer

04

Notary acknowledgement

Notary completes certificate and stamp

05

Audio-video RON

Use RON where state permits

06

Recordation

Record deeds with county recorder if required

07

Distribute copies

Provide executed copies to all parties

08

Preserve evidence

Retain notarization journal and recordings

Common mistakes to avoid when preparing terms

Using informal or ambiguous compensation language that leaves room for differing interpretations.
Failing to list an authorized signer, which delays acceptance of offers or amendments.
Neglecting state-specific disclosures that may be mandatory and expose parties to penalties.
Omitting a clear effective date and termination clause, which complicates exclusivity and commission disputes.

Key risks and potential penalties

1099 Late Penalty: $60–$330+ per form

Backup Withholding: 24% withholding rate

I-9 Violation: $281–$2,789 per violation

Disclosure Failure: State fines possible

Invalid Signature: Enforceability risk

Unclear Authority: Void or disputed acts

eSignature vendor comparison for executing Real Estate Terms of Business

Compare basic pricing and common features across vendors; signNow appears first for reference but choose a vendor based on required compliance and features.

	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	Varies by plan
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 Real Estate Terms of Business

Answers to common questions about signing, notarization, amendments, and recordkeeping for Real Estate Terms of Business.

Need help? Contact support

Can this be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met.
Are witnesses or notarization required?
Not always. Notarization is required for recordable documents like deeds; witness requirements vary by state and document type. Consult county recording rules for instruments intended for recordation.
How do I amend a signed Terms of Business?
Amendments should be in writing and signed by all parties. Use clear amendment language, include effective dates, and preserve originals and audit trails for enforceability.
How can I revoke or cancel it?
Follow the contract's termination clause. Provide written notice per the required notice period and retain proof of delivery. Termination does not necessarily void accrued commission rights.
What if a signature is disputed?
Retain the signing audit trail, authentication logs, and any RON recordings. These items support attribution and are critical evidence if enforceability is challenged.
How long should I retain the document?
Retain for at least the active term plus three years as a baseline; tax, HIPAA, or state rules may require longer retention—IRS and HIPAA minima apply.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now