The Real Estate Broker Employment Agreement is essential when a property owner wishes to engage a licensed real estate broker to market and sell their property. This document, governed by U.S. federal and state real estate laws, establishes the scope of the broker's authority, duties, and compensation structure. It includes critical elements such as listing period, commission rates, marketing responsibilities, and protection periods. The agreement ensures compliance with state licensing requirements and provides clear guidelines for both parties throughout the selling process.
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1. Parties: Identifies the broker and the client (property owner/seller)
2. Background: Establishes the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the specific services the broker will provide
5. Term of Agreement: Specifies duration of the agreement and any renewal provisions
6. Compensation: Details commission structure and payment terms
7. Agency Relationship: Defines the nature of the agency relationship and disclosure requirements
8. Termination: Outlines conditions and procedures for ending the agreement
1. Protection Period: Defines period after termination during which broker may still earn commission
2. Marketing Plan: Outlines specific marketing strategies and commitments
3. Property Management Services: Details additional property management responsibilities
4. Dispute Resolution: Specifies arbitration or mediation procedures
1. Property Details Schedule: Detailed description of the property being marketed
2. Commission Schedule: Detailed breakdown of commission structures for different scenarios
3. Marketing Plan Schedule: Detailed marketing strategy and timeline
4. Required State Disclosures: State-mandated real estate disclosures and forms
5. Agency Disclosure Form: State-required agency relationship disclosure document
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