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Real Estate Brokerage Agreement template
Real Estate Brokerage Agreement sample


What is Real Estate Brokerage Agreement?

Real Estate Brokerage Agreement An agreement engaging a real estate broker, specifying brokerage services, commissions, and responsibilities in real estate transactions.



Sample template:



REAL ESTATE BROKERAGE AGREEMENT


This Real Estate Brokerage Agreement (the "Agreement") is entered into and effective as of [Date] (the "Effective Date") by and between [Seller's Name], residing at [Seller's Address] (the "Seller") and Sarah Williams, a duly licensed real estate broker with a business address of [Broker's Address] (the "Broker").

WHEREAS, the Seller owns the residential property located at 456 Elm Street (the "Property");

WHEREAS, the Seller desires to engage the Broker to provide brokerage services for the sale of the Property, and the Broker agrees to provide such services in accordance with the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the Seller and the Broker agree as follows:

1. Engagement of Broker

1.1. Exclusive Right to Sell


The Seller hereby grants to the Broker the exclusive right to sell the Property during the term of this Agreement. The Broker agrees to use its best efforts and diligence to locate a ready, willing, and able buyer for the Property upon the terms and conditions set forth herein.



2. Broker's Services

2.1. Listing and Advertising


The Broker shall provide the following services to the Seller in connection with the sale of the Property: (a) listing the Property on the broker's multiple listing service database, (b) advertising the Property on any other appropriate platforms, (c) conducting open houses and private showings, (d) preparing marketing materials for the Property, and (e) negotiating all offers received in connection with the Property on behalf of the Seller.



2.2. Seller's Representative


The Broker shall represent the Seller's interests in all negotiations with prospective buyers, and the Broker shall act as the Seller's agent for the purpose of the sale of the Property. The Broker shall also act as the Seller's facilitator in the transaction and shall assist the Seller with all aspects of the transaction, including, but not limited to: (1) marketing and advertising, (2) negotiation, (3) execution of agreements with prospective buyers, and (4) coordinating and attending closing activities.



3. Broker’s Commission

3.1. Commission Rate


As compensation for the Broker's services, the Seller agrees to pay the Broker a commission equal to [Percentage, e.g., 6%] of the gross sales price of the Property (the "Commission"), which shall be paid at the time of closing on the sale of the Property.



3.2. No Commission if No Sale


Should the Broker fail to secure a sale of the Property during the term of this Agreement, no Commission shall be payable or due to the Broker.



4. Term and Termination

4.1. Term


This Agreement shall become effective as of the Effective Date and shall continue in full force and effect for a period of [Number of Months, e.g., 6] months unless sooner terminated according to the provisions of Section 4.2 below.



4.2. Termination


Either party may terminate this Agreement without cause upon 30 days' written notice to the other party. If the Seller terminates the Agreement without cause, the Broker shall be entitled to a pro-rata portion of the Commission based on the percentage of the term of this Agreement that has expired.



5. Indemnification

Both parties agree to indemnify and hold each other harmless from and against any and all claims, losses, damages, liabilities, or expenses, including, without limitation, reasonable attorneys' fees, arising from any third party claim in connection with the activities performed by either party under this Agreement, except to the extent such loss, damage, liability, or expense is caused by the gross negligence or willful misconduct of the other party.



6. 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 in which the Property is located, without regard to conflicts of law principles. Any dispute arising under or out of this Agreement shall be resolved through good faith negotiations between the parties. If the parties are unable to resolve such dispute within 30 days of the commencement of such negotiations, the dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.



7. Entire Agreement; Amendments

This Agreement, together with any exhibit or other document referred to herein, constitutes the entire understanding of the parties relating to the subject matter of this Agreement, and supersedes all prior and contemporaneous negotiations, understandings, and agreements, whether oral or written, between the parties relating to the subject matter of this Agreement. This Agreement may not be amended or modified in any respect, except by a written instrument executed by the parties hereto, after the date hereof.



8. Counterparts and Electronic Signatures

This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. The parties agree that electronic signatures may be used in the execution of this Agreement.



IN WITNESS WHEREOF, the parties have executed this Real Estate Brokerage Agreement as of the Effective Date.

_________________________ _________________________
[Seller's Name] (Seller) Sarah Williams (Broker)

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Main Sections of a Real Estate Brokerage Agreement


In this Real Estate Brokerage Agreement, you will see the following sections:

  1. Engagement of Broker
  2. Broker's Services
  3. Broker's Commission
  4. Term and Termination
  5. Indemnification
  6. Governing Law and Dispute Resolution
  7. Entire Agreement; Amendments
  8. Counterparts and Electronic Signatures


About each Section - Analysis and Summary:

  1. Engagement of Broker : This section establishes the agreement between the property seller and the broker. The seller grants the broker exclusive rights to sell the property and the broker agrees to use their best efforts to find a buyer.

  2. Broker's Services : This section outlines the specific services the broker will provide, such as listing and advertising the property, conducting open houses and private showings, preparing marketing materials, and negotiating offers on behalf of the seller. The broker also agrees to represent the seller's interests and act as their agent throughout the sale process.

  3. Broker's Commission : This section details the broker's compensation, which is a percentage of the property's gross sales price. The commission is only payable if the broker successfully sells the property during the agreement term. If no sale occurs, the broker receives no commission.

  4. Term and Termination : This section specifies the duration of the agreement and the conditions under which either party can terminate it. If the seller terminates the agreement without cause, the broker may be entitled to a pro-rata portion of the commission based on the percentage of the agreement term that has expired.

  5. Indemnification : This section states that both parties agree to indemnify and hold each other harmless from any claims, losses, damages, or expenses arising from their activities under the agreement, except in cases of gross negligence or willful misconduct.

  6. Governing Law and Dispute Resolution : This section establishes that the agreement is governed by the laws of the United States and the state where the property is located. Any disputes arising from the agreement will be resolved through good faith negotiations or, if necessary, binding arbitration.

  7. Entire Agreement; Amendments : This section clarifies that the agreement, along with any referenced documents, represents the entire understanding between the parties and supersedes any previous negotiations or agreements. The agreement can only be amended in writing and with the consent of both parties.

  8. Counterparts and Electronic Signatures : This section allows the agreement to be executed in multiple counterparts, each considered an original, and permits the use of electronic signatures for the execution of the agreement.

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