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What is Agency Agreement?

Agency Agreement Appoints an agent to act on behalf of another party, specifying authority and responsibilities.



Sample template:



AGENCY AGREEMENT


This Agency Agreement (hereinafter referred to as the "Agreement") is entered into as of [Date], by and between Smith Realty Group, a [State] corporation having its principal place of business at [Address], (hereinafter referred to as the "Principal") and John Smith, an individual residing at [Address], (hereinafter referred to as the "Agent").

1. Appointment and Authority of Agent

1.1. Appointment as Agent


The Principal hereby appoints the Agent as its exclusive agent for the purpose of representing the Principal in the marketing and sale of its properties and related services (hereinafter referred to as the "Services") and the Agent hereby accepts such appointment.



1.2. Agent's Authority


The Agent is authorized to act on behalf of the Principal during the term of this Agreement, including, without limitation: (a) to market, offer for sale, and sell the Services; (b) to enter into contracts on behalf of the Principal within the scope of this Agreement and negotiate for the purchase of other necessary supplies or services related to the Services; and (c) perform any other acts required to carry out the purpose of this Agreement, provided that such acts are consistent with the terms and conditions of this Agreement and the requirements of applicable law.



2. Responsibilities of the Agent

2.1. Compliance with Laws and Regulations


The Agent shall at all times during the term of this Agreement comply with all applicable federal, state and local laws, ordinances, regulations and orders which relate to the marketing, offering for sale, or sale of the Services, the performance of the Agent's services hereunder or any other aspect of the Agent's activities pursuant to this Agreement.



2.2. Performance of Services


The Agent shall use its best efforts to market, offer for sale, and sell the Services and to otherwise carry out its obligations under this Agreement, diligently and to the best of its ability. The Agent shall be responsible for maintaining necessary licenses, certifications, and other qualifications required to perform the Services and to engage in the activities contemplated by this Agreement.



2.3. Confidentiality and Non-Disclosure


The Agent shall maintain in confidence any non-public information regarding the Principal, its business and operations, its customers and clients, and the Services which is disclosed to it by the Principal or otherwise comes into its possession as a result of the Agent's activities pursuant to this Agreement. The Agent shall not use, disclose or communicate any such information to any third party without the prior written consent of the Principal, except to the extent necessary to carry out its obligations under this Agreement or as required by law.



3. Compensation

3.1. Commission for Sale of Services


In consideration of the Agent's performance of its obligations under this Agreement, the Principal agrees to pay the Agent a commission of [Percentage] percent of the gross selling price of each Service sold by the Agent pursuant to this Agreement, exclusive of any taxes or other amounts collected from or on behalf of the purchaser, which shall be paid by the purchaser in addition to the gross selling price (the "Commission").



3.2. Payment of Commission


Commissions shall be payable on a monthly basis, with payment being due no later than the fifteenth (15th) day following the last day of the month in which the sale occurs. Commissions shall be calculated based on the sales transaction records maintained by the Principal, provided that the Agent shall have the right to inspect such records and to dispute any Commission calculations within thirty (30) days after the date on which the payment in question is due.



4. Term and Termination

4.1. Term


This Agreement shall commence on the date first set forth above and shall continue in full force and effect for a term of one (1) year, unless sooner terminated pursuant to Section 4.2 below. This Agreement may be renewed for additional one (1) year terms upon the mutual written agreement of the parties.



4.2. Termination


Either party may terminate this Agreement at any time, with or without cause, by providing the other party with thirty (30) days prior written notice of termination. Upon termination or expiration of this Agreement, the Agent shall no longer have the authority to act on behalf of the Principal, and any outstanding Commissions shall be paid to the Agent as provided in Section 3 above.



5. Miscellaneous

5.1. Governing Law and Dispute Resolution


This Agreement shall be governed by and construed in accordance with the laws of the United States and the state of [State]. Any dispute arising out of this Agreement shall be submitted to arbitration in accordance with the rules of the American Arbitration Association in the state of [State]. The decision of the arbitrator(s) shall be final and binding on the parties.



5.2. Entire Agreement


This Agreement, including any schedules and exhibits attached hereto and made a part hereof, constitutes the entire Agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether oral or written, of the parties with respect to the subject matter hereof.



IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

___________________________ ___________________________
[Principal's Name] John Smith
Smith Realty Group Agent

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Common Sections of an Agency Agreement


In this Agency Agreement, you will see the following sections:

  1. Appointment and Authority of Agent
  2. Responsibilities of the Agent
  3. Compensation
  4. Term and Termination
  5. Miscellaneous


Analysis/Summary of each section

  1. Appointment and Authority of Agent: This section establishes the relationship between the Principal (Smith Realty Group) and the Agent (John Smith). The Principal appoints the Agent as their exclusive representative for marketing and selling their properties. The Agent is given the authority to act on behalf of the Principal, including entering into contracts and negotiating purchases related to the services.

  2. Responsibilities of the Agent: This section outlines the Agent's duties, such as complying with laws and regulations, using their best efforts to market and sell the properties, maintaining necessary licenses and certifications, and keeping the Principal's information confidential. The Agent is not allowed to disclose any non-public information without the Principal's written consent.

  3. Compensation: This section explains how the Agent will be paid for their services. The Principal agrees to pay the Agent a commission based on a percentage of the gross selling price of each property sold. Commissions are payable on a monthly basis, and the Agent has the right to inspect sales records and dispute commission calculations within a specified time frame.

  4. Term and Termination: This section sets the duration of the agreement, which is one year, with the possibility of renewal for additional one-year terms upon mutual agreement. Either party can terminate the agreement at any time by providing 30 days written notice. Upon termination, the Agent's authority to act on behalf of the Principal ends, and any outstanding commissions are paid as specified in the Compensation section.

  5. Miscellaneous: This section covers various additional terms, such as governing law, dispute resolution, and the fact that this agreement represents the entire understanding between the parties. Any disputes arising from the agreement will be resolved through arbitration in accordance with the rules of the American Arbitration Association in the specified state.

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