The Real Estate Commission Agreement Form serves as the foundational contract between property owners and real estate professionals in the United States. This document is essential when engaging a real estate agent or broker to sell a property, whether residential or commercial. It defines the commission structure, listing period, agent's responsibilities, and owner's obligations. The agreement must comply with both federal and state-specific real estate regulations, including RESPA and state licensing requirements. It protects both parties' interests by clearly outlining expectations, compensation terms, and the scope of authorized services.
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Key Requirements PROMPT example:
Real Estate Commission Agreement Form
"I need a Real Estate Commission Agreement Form for a luxury residential property in California, with a 6-month exclusive listing period starting March 1, 2025, and specific provisions for international marketing and high-end buyer representation."
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1. Parties: Identification of the broker/agent and property owner, including license numbers and contact details
2. Background: Context of the agreement and general property details
3. Definitions: Key terms used throughout the agreement including 'Commission', 'Listing Period', 'Closing', etc.
4. Scope of Services: Detailed description of services to be provided by the broker/agent including marketing, showing, and negotiation responsibilities
5. Commission Structure: Terms of payment, commission rates, and conditions for commission becoming due
6. Term of Agreement: Duration of the agreement, start and end dates, and termination provisions
7. Obligations of Parties: Specific responsibilities and commitments of both broker and property owner
8. Representations and Warranties: Legal statements and guarantees made by both parties
9. Governing Law: Specification of applicable state law and jurisdiction
1. Dual Agency Provisions: Terms governing situations where broker may represent both seller and buyer - include only if allowed by state law
2. Protection Period: Terms defining post-termination period where commission may still be due for previously introduced buyers
3. Marketing Budget: Specific marketing commitments, expense allocations, and reimbursement terms
4. Multiple Listing Service: Terms related to MLS listing and cooperation with other brokers
1. Schedule A - Property Description: Detailed description of the property including address, legal description, and included/excluded items
2. Schedule B - Commission Rate Schedule: Detailed breakdown of commission rates for different transaction scenarios
3. Schedule C - Marketing Plan: Detailed marketing strategy, timeline, and commitments
4. Appendix A - State-Required Disclosures: Mandatory state-specific disclosure forms and acknowledgments
5. Appendix B - Agency Disclosure Form: Required disclosure of agency relationships as per state law
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