What Is a Real Estate Agent Agreement?
A real estate agent agreement outlines the relationship between real estate contractors and an agency. This contract defines the agent’s obligations, licensing costs, membership fees, and commission splits. Other details, such as the term of the agreement and the services provided, are also included.
Use Legal Templates’s free real estate agent agreement to protect the parties involved. Our forms make it easy to create an effective contract and establish the terms of your work.
How to Write an Independent Contractor Agreement for a Real Estate Agent
Real estate agents who operate as independent contractors should have a binding agreement. Include the following information and terms for independent contractor real estate agents.
1. Provide Party Information
Clearly identify both the independent real estate agent and the real estate company. Record the full legal name and address of each party. If either party operates as an entity rather than an individual, include the business name and address.
2. Describe the Services
The contract should also have an in-depth description of the real estate agent’s expected services. Generally, independent real estate agents perform the following tasks:
- Guiding clients through buying and selling processes
- Finding houses for clients to tour
- Finding relevant buyers for clients wanting to sell property
- Negotiating offers on behalf of clients
- Advising clients and helping them with paperwork
- Consistently communicating with clients and the other parties involved in a sale
- Helping clients through the home inspection and closing processes
3. Outline Compensation Methods
For real estate agents, compensation typically operates on a commission-based structure. Define any commission agreements or whether the agent will receive a fixed or hourly rate. In addition, list any expense reimbursements and define which party will be responsible for membership dues, licensing fees, and travel costs.
4. Set Agreement Terms
Select whether the real estate agent will work as an ongoing, fixed-term, or project-based contractor. Next, establish the procedures and legal grounds for termination, such as illegal activity, fraud, or breach of contract. Also note the grace period and methods for the contractor to fix any breach of contract, if applicable.
Real estate agent contractors may be subject to licensing or realtor membership requirements. Licensing requirements vary by state, and include attending hours of in-class learning, passing an exam, and maintaining continuing education credits. Some real estate agencies may also require contractors to hold multiple listing service (MLS) memberships to expand their access to property details and opportunities.
5. Consider Extra Provisions
Additional provisions, such as non-disclosure and indemnity clauses, are common for independent real estate contractors. The agency should include these provisions in the agreement or provide clear references to the additional documentation. Also include any insurance or licensing requirements necessary for the agent’s engagement.
6. Establish Conflict Resolution
Clearly document the process for handling potential disputes arising from this agreement. Select whether claims will be solved using arbitration, mediation, litigation, or a combination of methods. In addition, set which state laws will govern the agreement. This is typically the primary state in which the real estate agency operates. Also, record the effective date to indicate when the agreement’s terms will take effect.
Sample Real Estate Agent Agreement
Use Legal Templates’s free real estate agent agreement for effective and customizable terms for independent real estate contractors. Our downloadable form is available in PDF and Word format.
