The Real Estate Broker Agreement is essential when a property owner wishes to engage professional representation for selling or leasing their property. This document formalizes the relationship between the parties, establishing clear expectations, compensation terms, and service scope. Used throughout the United States, it must incorporate both federal requirements and state-specific regulations. The agreement typically includes detailed marketing commitments, commission structures, duration terms, and property specifications. It serves as the foundational document protecting both the broker's and owner's interests throughout the transaction process.
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1. Parties: Identifies the broker and property owner/seller, including full legal names and contact details
2. Background: Brief context about the property and the purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Authority: Establishes the broker's appointment and scope of authority
5. Term of Agreement: Duration of the agreement, including start and end dates
6. Broker's Duties: Detailed list of services and obligations of the broker
7. Owner's Obligations: Property owner's responsibilities and commitments
8. Commission Structure: Details of broker compensation and payment terms
9. Termination: Conditions and process for ending the agreement
1. Multiple Listing Service: Terms for MLS listing, used when property will be listed on MLS
2. Marketing Plan: Specific marketing strategies and commitments for high-value properties or when specific marketing is required
3. International Marketing: Terms for international property promotion, suitable for luxury properties or those targeting international buyers
4. Virtual Tours: Terms regarding virtual showings and online marketing when virtual tours will be part of the marketing strategy
1. Property Details Schedule: Detailed description of the property including address, features, and condition
2. Commission Schedule: Detailed breakdown of commission structures and payment terms
3. Marketing Plan Schedule: Detailed marketing strategy and timeline
4. Agency Disclosure Form: State-required agency relationship disclosure
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