Establishing secure connection…Loading editor…Preparing document…

Sole Agency Agreement

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

SOLE AGENCY AGREEMENT

This Sole Agency Agreement (the Agreement) is made by and between:

Seller Name:   Seller Contact:

Broker / Sole Agent:   Agent Name:

Property Identification

Appointment; Scope of Authority

Seller hereby appoints Broker as Sole Agent with the exclusive authority to market, solicit offers for, and procure purchasers for the Property during the Term defined below. Broker is authorized to advertise the Property, list it in applicable cooperative systems of record, coordinate showings, negotiate terms of sale, and present all offers to Seller. Broker's authority does not include the power to execute a binding purchase agreement on behalf of Seller without Seller's separate written approval.

Term

This Agreement commences on and expires on (the Term), unless earlier terminated in accordance with this Agreement.

Agency Relationship

The parties acknowledge and agree that this is a Sole Agency arrangement: Broker is the sole appointed agent for Seller during the Term. Seller acknowledges Broker may act as an agent for cooperating brokers and may disclose material facts as required by law. Any dual agency or designated agency arrangements require the separate, written consent of each party.

Broker Duties

Broker agrees to use commercially reasonable efforts to market the Property, which may include listing the Property in cooperative listing services, placing advertisements, scheduling showings and open houses, screening prospective purchasers, and negotiating offers. Broker will communicate all offers promptly and keep Seller reasonably informed of marketing activity.

Seller Representations and Obligations

Seller represents that Seller is the lawful owner of the Property and has full authority to enter into this Agreement. Seller will furnish to Broker all material information and documents reasonably requested for marketing and sale, grant Broker reasonable access to the Property for showings, and timely disclose all known material defects, prior damage, and environmental conditions.

Compensation; Commission

Seller agrees to pay Broker a commission equal to or a flat fee of at closing. If both fields are completed, commission will be calculated by the percentage unless otherwise agreed in writing.

Cooperation with other brokers and cooperating broker compensation: Broker will offer to cooperating brokers unless otherwise instructed by Seller in writing.

Commission is earned and payable upon closing of a sale of the Property or upon Seller's acceptance of a binding purchase agreement for the sale of the Property during the Term or during the Protection Period described below, regardless of whether closing occurs, unless this Agreement expressly provides otherwise.

Seller's Right to Sell

Seller retains the right to introduce a purchaser directly. If Seller procures a purchaser during the Term, Seller will notify Broker in writing of the identity of that purchaser. Commission shall be payable to Broker for sales to any purchaser who was introduced or actively solicited by Broker, or who is a procuring cause, subject to the exceptions expressly agreed below.

Protection Period

If, within days after the expiration of the Term (the Protection Period), the Property is sold to a purchaser whose identity was disclosed to Seller by Broker in writing during the Term or with whom Broker had negotiations during the Term, Seller shall pay the commission specified above as if the sale occurred during the Term.

Marketing Costs and Expenses

Seller shall be responsible for reasonable marketing expenses as agreed in advance. Seller agrees that marketing expenses up to will be paid by Seller without further authorization. Any expenses exceeding that amount require Seller's prior written approval.

Unless otherwise agreed in writing, Broker may incur reasonable expenses on Seller's behalf and submit invoices for reimbursement at closing.

Disclosures

Default; Remedies

A material breach of this Agreement by either party entitles the non-breaching party to pursue all remedies available at law or in equity, including specific performance, injunctive relief, damages, and recovery of reasonable attorneys' fees and costs if authorized by applicable law. Broker's entitlement to commission as provided herein survives termination of this Agreement to the extent expressly stated.

Notices

Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located. This Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior negotiations and agreements. Any amendment or waiver must be in writing and signed by both parties.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Headings are for convenience only and do not affect interpretation. Time is of the essence with respect to the obligations of the parties under this Agreement.

Seller Printed Name:

By:

Date:

Seller Contact Phone/Email:

Broker / Brokerage Printed Name:

By:

Date:

Broker License No.:

Enter text✕

What a Sole Agency Agreement Is and when it applies

A Sole Agency Agreement is a written contract that gives one agent or broker the exclusive right to market and sell or lease specified property or services on behalf of an owner for a defined term. It sets commission terms, the agent's duties, territorial or client scope, and termination conditions. This agreement clarifies who may procure a buyer or client and how compensation is calculated and paid, reducing disputes over entitlement to commissions and establishing formal performance expectations between parties.

Why a clear Sole Agency Agreement matters

A properly drafted sole agency reduces commission disputes, records the parties' expectations, and creates an enforceable basis for remedies and fees. It also preserves evidence of intent and timing should enforcement or arbitration become necessary.

Why a clear Sole Agency Agreement matters

Typical parties who prepare or sign a Sole Agency Agreement

Common users include brokers, agents, property owners, and corporate sales representatives who need exclusive representation terms.

  • Real estate brokers and listing agents seeking exclusive rights to market property and earn commission.
  • Property owners or sellers who want a single representative to avoid dual representation and conflicting offers.
  • Corporate vendors or sales teams appointing a regional agent to secure customers in a defined territory.

Each user group has different priorities—commission clarity for agents, control over marketing for owners, and corporate approvals for companies.

Step-by-step: completing a Sole Agency Agreement

Follow these core steps to prepare, review, and finalize the agreement with clear dates, names, and signature blocks.

  • 01
    Prepare: Enter full party names and property or service description.
  • 02
    Specify Terms: Set term, territory, and commission percentage or formula.
  • 03
    Review: Confirm governing law, termination rights, and dispute resolution.
  • 04
    Sign: Obtain signatures and record effective date and notarization if required.

How to configure an online signing workflow for this agreement

Set up field placement, signer order, and authentication to match your approval and compliance needs before sending for signature.

Field Configuration
Signer Order Sequential or parallel routing based on negotiation flow
Authentication Email link or SMS code; use stronger methods for sensitive deals
Conditional Fields Show commission split fields only if dual agents apply
Template Save Save a version for repeat listings to speed future workflows

Digital signing and file format considerations

Choose a signing platform that supports your file types, integrations, and required signer authentication.

  • Integrations: Salesforce, NetSuite, Microsoft 365 support
  • File formats: PDF, Word DOCX, and HTML accepted
  • Auth options: Email, SMS, KBA, SSO

Typical eSigning flow for a Sole Agency Agreement

A standard electronic signing workflow moves the document from preparation to completion while preserving an audit trail.

  • Upload: Sender uploads final agreement to the eSignature platform.
  • Place Fields: Add signature, initials, date, and conditional fields.
  • Invite Signers: Send email or SMS link in chosen signer order.
  • Complete: Signers authenticate, sign, and receive executed copies.

Comparison of common eSignature vendors for executing agreements

Basic vendor pricing and feature differences frequently affect platform choice for high-volume agreement workflows. 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 Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and compliance considerations for electronically signing agreements

Encryption: TLS 1.2/1.3; AES-256 at rest
Certifications: SOC 2 Type II, ISO 27001
HIPAA: BAA available where required
Audit Trail: Timestamps, IP, event history
Authentication: Email, SMS, SSO, KBA
Standards: 21 CFR Part 11 compliance options

Key risks and consequences of mistakes in the agreement

Commission Dispute: Lost or contested commission
Breach Damages: Contractual damages and fees
Invalid Signature: Enforceability challenges
Regulatory Risk: License or disclosure violations
Tax Exposure: Incorrect reporting consequences
Reputational Harm: Client relationship damage

Common preparation mistakes to avoid

  • Leaving the commission formula vague, such as 'reasonable commission', which creates interpretation disputes and costly litigation over what parties intended.
  • Using inconsistent party names or abbreviations that do not match government IDs or corporate records, complicating enforcement and payment processing.
  • Failing to define territory or client scope clearly, resulting in overlapping authority and multiple agents claiming commission on a single sale.
  • Neglecting to state termination and survival provisions, so crucial clauses like commission survival or post-termination leads go unenforceable or ambiguous.

Drafting tips to make the agreement enforceable and practical

Apply these drafting and process controls to reduce ambiguity and support enforcement if disputes arise.

Define exclusivity clearly
Specify whether the agency is sole, exclusive, or sole with owner reservation; state if the owner may procure clients without commission and detail circumstances that trigger commission payment.
Spell out commission mechanics
Include precise percentages, split formulas, payment timing, and examples for combined sales. Specify when a commission is earned and whether it survives termination or applies to deals introduced during the term.
Include termination and notice procedures
Set notice periods, cure windows, and post-termination obligations. Clarify whether commission rights survive termination for deals in escrow or under negotiation.
Select governing law and dispute resolution
Choose the state law that will govern interpretation and include arbitration or venue clauses to limit litigation costs and ensure predictable enforcement.

How different organizations use Sole Agency Agreements in practice

Real-world examples show how agreements reduce friction and speed transactions when combined with digital signature workflows.

Martin Properties — Real Estate

Agent used a digitized sole agency to list a rental property quickly and remotely, ensuring timely signature collection.

  • The platform ensured mobile signing for tenants and owners.
  • The result reduced turnaround time, preserved an audit trail, and produced consistent commission calculations for the landlord and agency.

BIS — Commercial Sales

Company centralized sole agency contracts across regions to standardize commission terms and compliance.

  • Templates enforced required clauses and approvals.
  • Centralizing templates cut review cycles and helped the legal team track expirations and post-termination commission exposure companywide.

Who typically signs and why their role matters

Listing Broker — Managing Broker

A managing broker signs to accept agency obligations, control marketing strategy, and confirm brokerage commission policies; their signature binds the brokerage and triggers agent authority and payment paths.

Property Owner — Seller

The owner signs to delegate exclusive marketing authority, acknowledge commission terms, and establish the effective date; a correct owner signature prevents later title or entitlement disputes.

Key milestones from negotiation to post-termination tracking

Track milestones to protect commission rights and ensure timely notices and renewals throughout the agreement lifecycle.

01

Negotiation

Finalize scope, territory, and commission formula with all parties.

02

Execution

Obtain all required signatures and record the effective date.

03

Performance

Monitor introductions, showings, and documentation supporting earned commissions.

04

Post-Termination

Track surviving commission claims and required notices after the term ends.

Frequently asked questions about Sole Agency Agreements and eSigning

Answers address common legal, signing, revocation, and enforceability questions for U.S. users of electronic and paper agreements.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users