Ready-to-Use Real Estate Brokerage Agreement Template
This ready-to-use real estate brokerage agreement template helps a property owner and a real estate broker record the scope of the brokerage appointment, marketing duties, commission arrangements, term, exclusivity, and termination conditions. It can be adapted for residential or commercial property transactions, subject to applicable local law.
A real estate brokerage agreement is a contract between a property owner and a broker or real estate agent who will assist with selling, leasing, or otherwise marketing a property. It identifies the property, defines the broker’s authority, and sets out how commission will be earned and paid. A clear written agreement can reduce disputes about exclusivity, marketing expenses, prospective buyers, and the duration of the appointment. This template is designed as a practical starting point for parties preparing a property brokerage arrangement.
Purpose of a real estate brokerage agreement
The agreement records the commercial relationship between the principal, usually the owner or an authorized representative, and the broker. It should state whether the broker is appointed to find a purchaser, tenant, investor, or other contracting party.
It also distinguishes between an exclusive appointment, where one broker is granted the sole right to market the property, and a non-exclusive arrangement, where the owner may appoint multiple brokers or find a buyer independently.
Exclusive and non-exclusive appointments
In an exclusive arrangement, commission may become payable even if the owner concludes the transaction directly, depending on the wording and applicable law. A non-exclusive appointment generally provides more flexibility, but it can make it harder to establish which broker was the effective cause of the transaction.
Essential information to include
The agreement should identify the parties accurately and describe the property with enough detail to avoid ambiguity. Include the address, title or parcel information where available, intended transaction type, target price or rent, and the period during which the broker is authorized to act.
| Document field | Purpose | Frequent error |
|---|---|---|
| Property description | Identifies the asset to be marketed | Using only an incomplete street address |
| Appointment type | Clarifies exclusivity and owner rights | Not stating whether the listing is exclusive |
| Commission rate | Sets the broker’s compensation | Failing to specify whether tax is included |
| Term | States when the authority begins and ends | Leaving the end date open-ended |
| Tail period | Protects commission for introduced prospects | Not defining which prospects are covered |
Broker duties and owner responsibilities
The broker’s duties may include advertising the property, arranging viewings, screening prospects, communicating offers, and assisting with negotiations. The owner should provide accurate information, reasonable access, required documents, and prompt notice of material changes.
Marketing authority and representations
The owner should expressly authorize the broker to publish approved descriptions, photographs, floor plans, and pricing information. The agreement should also require the owner to confirm that supplied information is accurate and that the broker may rely on it unless otherwise agreed.
- Confirm the owner’s legal authority to appoint the broker.
- Describe the property and intended transaction precisely.
- State whether the appointment is exclusive or non-exclusive.
- Set out the commission basis, payment trigger, and applicable taxes.
- Address confidentiality, data protection, and marketing approvals.
Editable template
Document template
REAL ESTATE BROKERAGE AGREEMENT
Place: ____________________ Date: ____________________
This Real Estate Brokerage Agreement (the “Agreement”) is entered into by and between:
Owner/Principal: ____________________, of ____________________, identification or registration number ____________________ (the “Owner”); and
Broker: ____________________, of ____________________, licence or registration number ____________________ (the “Broker”).
The Owner appoints the Broker in connection with the property described below, subject to the terms of this Agreement.
| Variable | Details |
|---|---|
| Property address and description | ____________________ |
| Transaction type | Sale / Lease / Other: ____________________ |
| Appointment type | Exclusive / Non-exclusive: ____________________ |
| Listing price or rental terms | ____________________ |
| Agreement term | From ____________________ to ____________________ |
| Commission | ____________________ % / fixed amount: ____________________ |
| Tax treatment | Included / excluded / other: ____________________ |
| Approved marketing expense limit | ____________________ |
| Tail period for introduced prospects | ____________________ days/months |
- Appointment. The Owner appoints the Broker to market the Property and seek prospective purchasers, tenants, or other parties for the transaction specified above. The Broker accepts this appointment.
- Broker services. The Broker may advertise the Property, arrange viewings, communicate with prospective parties, present offers, and assist negotiations. The Broker shall act in accordance with applicable law and professional obligations.
- Owner obligations. The Owner shall provide accurate information and documents concerning the Property, permit reasonable access for agreed marketing activities, and promptly notify the Broker of changes affecting the Property or transaction.
- Authority and marketing materials. The Owner authorizes the Broker to use approved descriptions, photographs, plans, and other materials to market the Property. The Owner confirms that information supplied to the Broker is accurate to the best of the Owner’s knowledge.
- Commission. The Owner shall pay the Broker the commission stated above when: ____________________. Commission shall be payable within ____________________ days after the triggering event. Any applicable taxes shall be treated as stated in this Agreement.
- Expenses. The Broker may incur only those marketing expenses approved by the Owner in writing. Approved expenses shall be reimbursed within ____________________ days after presentation of supporting documentation.
- Term and termination. This Agreement begins and ends on the dates stated above. Either party may terminate it earlier by written notice of ____________________ days, subject to accrued rights and obligations.
- Introduced prospects. If, during the tail period stated above, the Owner enters into a transaction concerning the Property with a prospect first introduced by the Broker during the Agreement term, the commission provisions shall apply, to the extent permitted by applicable law.
- Confidentiality and data. Each party shall handle personal and confidential information received under this Agreement in accordance with applicable law and shall use it only for purposes related to the Property transaction.
- Governing law and disputes. This Agreement shall be governed by the laws of ____________________. The parties shall first seek to resolve disputes through good-faith negotiation before commencing formal proceedings, unless urgent relief is required.
- Entire agreement. This Agreement and its attachments constitute the entire agreement between the parties concerning the brokerage appointment. Any amendment must be in writing and signed by both parties.
Signed by the parties on the date stated above.
____________________
Owner/Principal
Name: ____________________
____________________
Broker
Name: ____________________
____________________
Witness (if required)
Name: ____________________
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Commission, expenses, and payment triggers
Commission can be calculated as a percentage of the final sale price, a fixed amount, a percentage of rent, or another clearly defined formula. The contract should state when it is earned, such as on signing a binding sale contract, completion, execution of a lease, or receipt of funds.
It is equally important to distinguish commission from reimbursable marketing expenses. If the broker may incur photography, advertising, inspection, or travel costs, the agreement should require the owner’s prior written approval and set any applicable spending limit.
Before signing, ensure that the commission clause clearly states the event that triggers payment and whether a transaction with a buyer introduced after expiry is covered.
How to complete the template
Review local licensing, consumer protection, agency disclosure, and property-law requirements before using the document. Some jurisdictions require prescribed disclosures or regulate commission arrangements, especially in residential transactions.
- Insert the full legal names, addresses, and contact details of the owner and broker.
- Complete the property description, listing price or rental terms, and appointment type.
- Specify the term, commission formula, tax treatment, and approved expenses.
- Review the agreement, attach any schedules, and have all parties sign and retain copies.
Frequently asked questions
Is an exclusive brokerage agreement always necessary?
No. An owner may choose a non-exclusive arrangement, but an exclusive appointment can give the broker greater certainty when investing time and resources in marketing. The appropriate choice depends on the parties’ objectives and local law.
When does a broker earn commission?
The answer depends on the contract and applicable law. The agreement should expressly define whether commission is earned on introduction, execution of a binding contract, completion of the transaction, or another specified event.
Can the owner terminate the agreement early?
Early termination may be possible if the agreement permits it or if there is a material breach. The contract should explain the notice period, any fees, and whether commission remains due for prospects introduced before termination.