Property Agent Agreement Template for United States

A Property Agent Agreement is a legally binding contract used in the United States that establishes the relationship between a property owner and a real estate agent or broker. The agreement outlines the terms of representation, including the scope of services, commission structure, duration of the agreement, and the respective rights and obligations of both parties. It incorporates federal requirements such as the Fair Housing Act and RESPA, as well as state-specific real estate regulations and licensing requirements.

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What is a Property Agent Agreement?

The Property Agent Agreement serves as the foundational document for establishing a professional relationship between property owners and real estate professionals in the United States. This agreement is essential when a property owner wishes to engage a licensed real estate agent or broker to market, sell, lease, or manage their property. It clearly defines the scope of authority granted to the agent, compensation terms, and duration of the relationship. The document must comply with both federal regulations (such as Fair Housing Act and RESPA) and state-specific real estate laws, including licensing requirements and mandatory disclosures.

What sections should be included in a Property Agent Agreement?

1. Parties: Identification of the principal and the agent, including licensing details

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment and services to be provided

5. Commission Structure: Details of fees, commissions, and payment terms

6. Term and Termination: Duration of agreement and termination conditions

7. Agent's Obligations: Specific duties and responsibilities of the agent

8. Principal's Obligations: Specific duties and responsibilities of the principal

What sections are optional to include in a Property Agent Agreement?

1. Exclusive Rights: Used when granting exclusive agency rights for specific properties or territories

2. Marketing Budget: Details of marketing expenditure and responsibilities when costs are shared or reimbursed

3. International Properties: Specific terms and conditions for dealing with cross-border properties

What schedules should be included in a Property Agent Agreement?

1. Schedule A - Property Details: List of properties covered under the agreement

2. Schedule B - Commission Rates: Detailed breakdown of commission structures and payment terms

3. Schedule C - Marketing Plan: Detailed marketing strategy and budget

4. Appendix 1 - Required State Disclosures: State-mandated disclosure forms and compliance documents

5. Appendix 2 - Agent's License: Copy of agent's current real estate license and certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use

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