Scope of Services: This section defines what services the real estate agent will provide. It may include tasks such as property search (for buyers), property listing and marketing (for sellers), conducting property viewings, negotiating offers, and managing the transaction process.
Duration of Agreement: The terms specify the duration of the agreement between the agent and the client. This could be for a specific period (e.g., six months) or until a particular event (e.g., sale of the property) occurs.
Commission and Fees: Details regarding the commission or fees payable to the real estate agent are outlined. This includes 1% percentage or fixed amount of commission, who is responsible for paying it (buyer, seller, or both), and under what circumstances the commission is earned
Exclusive Representation: Whether the agreement is exclusive (the client works exclusively with that agent) or non-exclusive (the client can engage multiple agents simultaneously) may be specified.
Termination Clause: Conditions under which either party can terminate the agreement before its expiration, and any associated penalties or notice periods required.
Confidentiality: Expectations regarding confidentiality and handling of sensitive information related to the transaction.
Legal Responsibilities: Compliance with local laws and regulations governing real estate transactions, including fair housing laws, disclosure requirements, and ethical standards set by the real estate licensing authority.
Dispute Resolution: Procedures for resolving disputes that may arise between the agent and the client, such as mediation or arbitration.
Client Responsibilities: Responsibilities and obligations of the client, such as providing accurate information about the property (for sellers) or financial information (for buyers), and cooperating with the agent’s efforts.
Miscellaneous Provisions: Additional clauses covering various aspects like amendments to the agreement, governing law, and any specific conditions or contingencies relevant to the transaction.
It’s important for both parties to carefully review and understand the terms and conditions before entering into a real estate agency agreement. These terms help ensure clarity, protect the interests of both parties, and facilitate a successful real estate transaction.
