The Real Estate Agency Agreement (Real Estate) serves as the foundational document governing the professional relationship between property owners and real estate professionals in the United States. This agreement is essential when a property owner wishes to engage a licensed real estate agent or broker to market, sell, or manage their property. It defines the scope of authority granted to the agent, outlines compensation terms, and ensures compliance with federal regulations such as RESPA and state-specific real estate laws. The document provides protection for both parties by clearly defining expectations, responsibilities, and termination conditions.
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1. Parties: Identification of the principal and the agent, including license numbers and contact details
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Agency: Detailed description of agent's duties and responsibilities
5. Term of Agreement: Duration of the agency relationship
6. Commission Structure: Details of compensation and payment terms
7. Termination Provisions: Conditions and procedures for ending the agreement
1. Dual Agency Provisions: Required when agent might represent both buyer and seller in jurisdictions allowing dual agency
2. Marketing Commitments: Specific marketing activities agreed upon, used when specific marketing arrangements are negotiated
3. Property Management Services: Additional services beyond sales/purchase, included when property management services are part of the agreement
1. Property Details Schedule: Specific information about the property being sold/managed
2. Commission Schedule: Detailed breakdown of commission structures and scenarios
3. Marketing Plan: Detailed marketing strategy and commitments
4. State-Required Disclosures: Mandatory state-specific disclosure forms
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