The Agency Agreement For Sale Of Residential Property is essential when a property owner wishes to formally engage a real estate professional to sell their residential property. This document is commonly used throughout the United States and must comply with both federal regulations and state-specific real estate laws. It establishes the agent's authority to market the property, negotiate with potential buyers, and details the commission structure, service period, and responsibilities of both parties. The agreement protects both the agent's and owner's interests while ensuring compliance with local real estate regulations.
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1. Parties: Identification of the property owner (Principal) and the real estate agent/broker (Agent)
2. Background: Brief context about the property and the intention to appoint an agent for its sale
3. Definitions: Key terms used throughout the agreement including Property, Listing Price, Commission, etc.
4. Appointment and Authority: Terms of agent appointment and scope of authority granted
5. Agent's Obligations: Detailed responsibilities and duties of the agent
6. Principal's Obligations: Property owner's responsibilities and commitments
7. Commission Structure: Details of commission rates, payment terms, and conditions
8. Term and Termination: Duration of agreement and conditions for termination
9. Governing Law: Applicable jurisdiction and legal framework
1. Protection Period: Post-termination period where agent may still be entitled to commission
2. Multiple Listing Service: Terms related to MLS listing and requirements
3. Marketing Budget: Specific marketing commitments and cost allocation between parties
4. Dual Agency: Terms for situations where agent represents both buyer and seller
1. Property Description Schedule: Detailed description of the property including address, boundaries, and features
2. Commission Schedule: Detailed breakdown of commission structures and scenarios
3. Marketing Plan: Detailed marketing strategy and commitments
4. Required Disclosures: State-specific required disclosures and forms
5. Property Condition Report: Current condition of the property and known issues
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