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Real Estate Broker Agreement

Engagement agreement between a broker and client for property sales or acquisitions — covers commission structure and exclusivity terms.

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What's included

Broker Appointment and Scope of Services

Defines the client's appointment of the broker, the covered property or acquisition mandate, and the brokerage services to be performed.

Commission Rate and Payment Trigger

States the commission or fee structure, when the commission is earned, when it is payable, and whether post-termination protected-party transactions apply.

Exclusivity Period and Carve-Out Listings

Establishes whether the engagement is exclusive, the start and end dates, and any excluded prospects, properties, prior negotiations, or client-reserved transactions.

Marketing Responsibilities and Expense Allocation

Allocates responsibility for listing activities, promotional materials, advertising channels, diligence materials, staging, photography, and reimbursable expenses.

Dual-Agency Disclosure and Consent

Requires disclosure and, where permitted, written consent for dual agency, designated agency, transaction brokerage, or conflicts involving both sides of a transaction.

Confidentiality and Transaction Information

Protects non-public financial, business, property, tenant, offer, and negotiation information exchanged during the engagement.

Termination and Survival

Sets termination rights, notice requirements, obligations upon termination, and survival of commission, confidentiality, indemnity, and dispute provisions.

Representations, Compliance, Indemnity, and Disputes

Addresses licensing compliance, fair housing and anti-discrimination obligations, authority to enter the agreement, risk allocation, indemnity, governing law, and dispute resolution.

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Frequently asked questions

What should a real estate broker agreement include?
It should identify the client and broker, describe the property or transaction mandate, state whether the engagement is exclusive, define the commission and payment trigger, allocate marketing expenses, address dual-agency consent, and include termination, confidentiality, compliance, and dispute provisions.
When is the broker's commission typically earned?
The agreement should specify the exact trigger, such as closing of a sale, execution of a lease, procurement of a ready, willing, and able buyer, or completion of a transaction with a protected party introduced during the engagement or tail period.
Can a broker agreement be non-exclusive?
Yes. A non-exclusive agreement can allow the client to work with other brokers or complete transactions independently, but the agreement should clearly state when the broker is entitled to compensation and whether any prospects or properties are protected.
Why is dual-agency disclosure important?
Dual agency or similar representation can create conflicts because the broker may be involved with both sides of a transaction. Many jurisdictions require written disclosure and informed consent before a broker may act in that capacity.

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Templates/Real Estate Broker Agreement