The Estate Agency Agreement serves as the foundational document for establishing a professional relationship between property owners and real estate agents in the United States. This agreement is essential when a property owner wishes to engage a professional real estate agent or agency to market and sell/lease their property. The document comprehensively addresses all aspects of the agency relationship, including the scope of services, commission structures, marketing strategies, and obligations of both parties. It must comply with both federal regulations (such as RESPA and the Fair Housing Act) and state-specific real estate laws, which vary by jurisdiction. The agreement typically includes specific provisions for property marketing, showing arrangements, commission terms, and duration of the agency relationship. It also incorporates necessary consumer protection elements and required disclosures specific to the relevant state's real estate regulations.
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1. Parties: Identification of the property owner (client) and the real estate agent/agency, including full legal names and contact details
2. Background: Brief context about the property sale/lease requirement and the parties' intention to enter into an agency relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Authority: Formal appointment of the agent and scope of authority granted
5. Property Details: Description and address of the property being listed
6. Agent's Services: Detailed description of services to be provided by the agent
7. Term of Agreement: Duration of the agency agreement, including start and end dates
8. Commission Structure: Details of agent's commission, including rate and payment terms
9. Marketing and Advertising: Agreed marketing strategy and advertising commitments
10. Owner's Obligations: Property owner's responsibilities and commitments
11. Agent's Obligations: Agent's duties, responsibilities, and standard of service
12. Termination: Conditions and process for terminating the agreement
13. Liability and Indemnity: Limitation of liability and indemnification provisions
14. Governing Law: Applicable law and jurisdiction
15. Signatures: Execution block for all parties
1. Dual Agency Provisions: Required when the agent might represent both seller and buyer
2. International Marketing: Include when property will be marketed internationally
3. Virtual Tours and Digital Marketing: Specific provisions for digital marketing services and virtual showings
4. Property Management: Include when agent will provide property management services
5. Short Sale Provisions: Required for properties potentially selling for less than mortgage balance
6. Teams and Sub-Agents: Include when multiple agents or teams will be involved
7. Dispute Resolution: Optional arbitration or mediation clauses
8. Force Majeure: Provisions for unforeseen circumstances preventing performance
1. Schedule A - Property Details: Detailed property description, including lot size, features, and conditions
2. Schedule B - Commission Structure: Detailed breakdown of commission rates, including any sliding scales or special circumstances
3. Schedule C - Marketing Plan: Detailed marketing strategy and timeline
4. Schedule D - Property Photos: Current photographs and condition report of the property
5. Schedule E - Excluded Features: List of items not included in the property sale
6. Appendix 1 - Required Disclosures: State-specific required disclosures and forms
7. Appendix 2 - Agency Relationships: Detailed explanation of agency relationships and duties
8. Appendix 3 - Service Level Agreement: Detailed breakdown of services and response times
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Management
Legal Services
Property Development
Construction
Financial Services
Insurance
Property Investment
Relevant Teams
Legal
Real Estate Operations
Sales
Compliance
Property Management
Business Development
Risk Management
Contract Administration
Investment
Relevant Roles
Real Estate Agent
Real Estate Broker
Property Manager
Legal Counsel
Compliance Officer
Real Estate Transaction Coordinator
Business Development Manager
Sales Director
Property Developer
Investment Manager
Real Estate Operations Manager
Contract Administrator
Risk Manager
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