An Agency Agreement For The Sale Of Residential Property is essential when a property owner wishes to engage a professional real estate agent to sell their residential property. This agreement, subject to U.S. federal and state laws, defines the relationship between the parties, outlines the agent's authority to act on behalf of the owner, establishes commission structures, and details marketing responsibilities. It provides legal protection for both parties and ensures compliance with real estate regulations, including state-specific requirements, RESPA, and Fair Housing Act provisions.
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1. Parties: Identification of the property owner (Principal) and the real estate agent/broker (Agent)
2. Background: Context of the agreement and basic information about the property
3. Definitions: Key terms used throughout the agreement
4. Appointment and Authority: Formal appointment of agent and scope of authority
5. Term of Agreement: Duration of the agency relationship
6. Agent's Obligations: Duties and responsibilities of the agent
7. Principal's Obligations: Duties and responsibilities of the property owner
8. Commission Structure: Details of agent compensation and payment terms
9. Termination: Conditions and process for ending the agreement
1. Marketing Plan: Specific marketing strategies and commitments - use when specific marketing commitments need to be documented
2. Dual Agency: Provisions for situations where agent represents both buyer and seller - use when dual agency is permitted in the jurisdiction
3. Virtual Tours: Provisions for virtual showings and online marketing - use when digital marketing is a significant component
1. Property Description Schedule: Detailed description of the property including address, boundaries, and features
2. Commission Schedule: Detailed breakdown of commission structure and payment terms
3. Marketing Plan Schedule: Detailed marketing strategy and timeline
4. Agency Disclosure Form: State-mandated agency relationship disclosure document
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