Ready-to-Use Real Estate Brokerage Agreement Template
This ready-to-use real estate brokerage agreement template helps property owners and brokers record the terms under which a property may be marketed, introduced to prospective buyers or tenants, and negotiated. It covers the property, scope of services, commission, exclusivity, duration, expenses, and termination terms.
A real estate brokerage agreement sets out the commercial relationship between a property owner and a broker or real estate agent. It records the authority granted to market or introduce prospects for a property, as well as the broker’s remuneration. A written agreement helps reduce misunderstandings about commission, exclusivity, expenses, and the events that trigger payment. The template should be adapted to the law and customary practice of the jurisdiction where the property is located.
Purpose of a Real Estate Brokerage Agreement
This agreement appoints a broker to assist with the sale, lease, or other disposition of identified real property. The appointment may be exclusive, sole, or non-exclusive, depending on the level of authority the owner intends to grant.
Clear drafting is especially important where several agents may be involved, where a purchaser is introduced shortly before the agreement ends, or where the transaction includes unusual assets, fixtures, or conditions.
Who usually signs the agreement?
The parties are normally the legal owner or authorized representative of the property and the licensed broker, agency, or agent. If the owner is a company, trust, estate, or co-owner group, the person signing should have authority to bind that party.
Essential Information to Include
The agreement should identify the property accurately and describe the services expected from the broker. It should also state how and when commission is earned and paid.
| Document field | Purpose | Frequent error |
|---|---|---|
| Property address and description | Identifies the asset covered by the appointment | Using only an incomplete street address |
| Type of appointment | Clarifies whether the broker has exclusive rights | Failing to define owner rights during exclusivity |
| Commission rate or amount | Sets the broker’s remuneration | Not stating whether taxes are included |
| Term and expiry date | Defines the duration of the appointment | Leaving renewal terms unclear |
| Trigger for payment | Explains when commission becomes due | Not addressing post-term introductions |
Commission, Expenses, and Payment
Commission may be a percentage of the final sale price, a fixed amount, or another agreed formula. The agreement should specify whether commission is due on signing a sale contract, completion, receipt of funds, or another defined event permitted by applicable law.
Marketing, photography, advertising, travel, and legal costs should be allocated expressly. A separate expense cap or written approval requirement can prevent disputes over reimbursable costs.
Post-term protection periods
A protection or tail period may entitle the broker to commission if the owner completes a transaction after expiry with a prospect first introduced by the broker during the term. The period, qualifying introductions, and notice procedure should be stated precisely.
Editable template
Document template
REAL ESTATE BROKERAGE AGREEMENT
Place: ____________________ Date: ____________________
This Real Estate Brokerage Agreement (the “Agreement”) is entered into by and between:
Owner/Client: ____________________, of ____________________, identification or registration number ____________________ (the “Owner”);
and
Broker: ____________________, of ____________________, licence or registration number ____________________ (the “Broker”).
The Owner appoints the Broker in relation to the property described below, subject to the terms of this Agreement.
| Variable | Agreed details |
|---|---|
| Property address | ____________________ |
| Property description / title reference | ____________________ |
| Transaction type | Sale / Lease / Other: ____________________ |
| Appointment type | Exclusive / Sole / Non-exclusive: ____________________ |
| Asking price or rent | ____________________ |
| Commission | ____________________ % / fixed amount: ____________________ |
| Agreement term | From ____________________ to ____________________ |
| Protection period after expiry | ____________________ days |
- Appointment. The Owner appoints the Broker to market the Property, identify prospective purchasers or tenants, arrange viewings, and assist with negotiations within the scope agreed by the parties.
- Broker’s duties. The Broker shall use reasonable efforts to market the Property, communicate material offers to the Owner, and perform services in accordance with applicable professional and legal requirements.
- Owner’s duties. The Owner shall provide accurate information about the Property, permit reasonable access by appointment, promptly notify the Broker of material changes, and cooperate in good faith with marketing and negotiations.
- Commission. The Owner shall pay the Broker the commission stated above when ____________________. Any applicable taxes shall be paid by ____________________.
- Expenses. Marketing and other expenses shall be borne by ____________________. Expenses exceeding ____________________ require the Owner’s prior written approval.
- Exclusivity and direct dealings. During an exclusive or sole appointment, the Owner’s rights to market or dispose of the Property are limited as follows: ____________________.
- Protection period. If, within the stated protection period, the Owner completes a transaction with a prospect introduced by the Broker during the term, commission shall be payable subject to applicable law and the terms of this Agreement.
- Termination. Either party may terminate this Agreement by written notice of ____________________ days, subject to accrued rights, approved expenses, and the protection period.
- Governing law. This Agreement shall be governed by the laws of ____________________, and disputes shall be subject to the courts or competent authorities of ____________________.
Signed by the parties on the date stated above.
____________________
Owner/Client Signature
Name: ____________________
____________________
Broker Signature
Name: ____________________
____________________
Witness (if required)
Name: ____________________
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Choosing the Right Appointment Structure
Owners should select an appointment structure that matches their marketing strategy, desired level of control, and willingness to work with multiple brokers.
- An exclusive appointment gives one broker primary or sole marketing authority.
- A sole agency arrangement may allow the owner to sell directly without commission in defined circumstances.
- A non-exclusive arrangement permits several brokers to seek prospects.
- A written price range or target price helps align marketing efforts.
- A prospect-registration procedure helps identify who introduced a buyer or tenant.
Practical Steps Before Signing
Before signing, confirm ownership details, the broker’s professional status, and the commercial terms. Retain a signed copy together with supporting communications and prospect records.
- Verify the legal owner and the property description.
- Decide whether the appointment will be exclusive, sole, or non-exclusive.
- Agree the commission, tax treatment, expenses, and payment trigger.
- Review the term, termination rights, and post-term protection period.
Use a clear written record of every prospect introduced by the broker, including the date and contact details, to reduce later disputes about commission entitlement.
Frequently Asked Questions
Is an exclusive brokerage agreement always necessary?
No. Exclusivity is a commercial choice, although brokers may request it before committing substantial marketing resources. The agreement should clearly explain what the owner may and may not do during the exclusive period.
When is brokerage commission normally payable?
That depends on the agreement and local law. Common triggers include execution of a binding transaction, completion, or successful introduction of a ready, willing, and able buyer. The trigger should be expressly defined.
Can the owner terminate the agreement early?
Early termination rights depend on the agreed terms and applicable law. The contract should address notice, outstanding expenses, prospective buyers already introduced, and any commission consequences.