Realtors Agency Agreement

As a real estate agent, having an agency agreement in place is crucial to your success. This agreement outlines the terms of your relationship with your client and ensures that both parties are clear on the expectations and responsibilities involved in the real estate transaction. In this article, we`ll take a closer look at the importance of a realtor`s agency agreement and what should be included in it.

What is a realtor`s agency agreement?

A realtor`s agency agreement is a legal document that outlines the relationship between a real estate agent or brokerage and their client. This agreement establishes the terms of the agency, including the roles and responsibilities of both parties, the scope of services provided, and the compensation agreement.

Why is a realtor`s agency agreement important?

There are several reasons why a realtor`s agency agreement is essential. Firstly, it provides clarity and sets expectations for both parties. By specifying the services that will be provided and the compensation agreement, the client knows what to expect from their real estate agent and there will be no surprises along the way. Additionally, it protects the agent from any misunderstandings or misunderstandings that may arise during the transaction.

What should be included in a realtor`s agency agreement?

The contents of a realtor`s agency agreement may vary depending on the specific needs of the client and the transaction. However, there are several essential elements that should be included in every agreement, such as:

1. The parties involved: This section should clearly identify the real estate agent, the client, and any other relevant parties involved in the transaction.

2. Scope of services: This section should detail the services that the real estate agent will provide throughout the transaction. This may include tasks such as property search, marketing, negotiating offers, and overseeing the closing process.

3. Compensation agreement: This section should specify the compensation arrangement between the client and the agent. This may be a percentage of the sale price or a flat fee, and it should also include any additional fees that may be charged.

4. Termination clause: This section should outline the conditions under which either party may terminate the agreement.

5. Confidentiality agreement: This section should specify the confidentiality of any information exchanged during the transaction.


A realtor`s agency agreement is a vital document that protects both the real estate agent and the client. By clearly outlining the services provided, compensation agreement, and termination conditions, the agreement ensures that both parties are on the same page and that the transaction runs smoothly. If you`re a real estate agent, it`s essential to have an agency agreement in place for every transaction you undertake.