Things have changed recently. Over the years, I’ve heard how real estate transactions – as a sales agent or property owner – can be complicated due to the commission agreements. They have a lot of moving parts and parties involved. I’ve spent so much time thinking about how to simplify this process, and that’s why I’m excited to share this new commission agreement form that I believe represents a cleaner, more transparent way to calculate real estate commissions.
This makes sense, because commissions on real estate transactions in the U.S. are significantly higher then other developed countries. So knowing what you should expect to receive or pay out is a good business practice for keeping track of your financial health.
This template lays everything out clearly, from the agreed commission rate to how total revenue gets split between brokers, agents, or any other organization or other party involved. It’s all about creating solid connections and making sure every person in the deal gets what they’re owed in accordance with their role. You’ll get explicit terms, all clearly disclosed, a signed agreement, and an outline for smooth cash payments. This agreement template is a free, helpful real estate agent tool to help you structure deals with clarity, protect your time, and ultimately bring in more revenue while maintaining professional ease.
Download Real Estate Commission Agreement Template
PDF | DOC | Google Docs
Real Estate Commission Agreement Form Example
This Real Estate Commission Agreement Template (hereinafter referred to as the “Agreement”) is made and entered into as of the ____ day of ___________, 20 (the “Effective Date”), by and between:
1. ____________________________________________________________ (Name of Property Owner)
(hereinafter referred to as the “Owner”) whose principal address is _____________________________________.
2. ____________________________________________________________ (Name of Real Estate Agent/Broker/Company)
(hereinafter referred to as the “Agent”) whose principal address is _____________________________________.
The Owner and Agent may collectively be referred to as the “Parties” or individually as a “Party.”
1. Purpose
The purpose of this agreement is to outline the terms and conditions under which the Agent will provide real estate services on behalf of the Owner for the sale, lease, or purchase of property. Learn more about listing agreements.
2. Property
The property subject to this Agreement is described as follows (the “Property”):
Address: ______________________________________________________________________________________
City, State, ZIP Code: ___________________________________________________________________________
Other Details/Description of Property (if applicable): _______________________________________________.
3. Non-Exclusive Agreement
This Agreement constitutes a non-exclusive agreement, meaning the Owner retains the right to enter into commission agreements with other real estate agents or brokers in connection with the Property.
4. Services and Obligations
The Agent agrees to perform real estate services and assist in the marketing , negotiation, and transaction of the Property, including but not limited to the following responsibilities:
- Listing and advertising the Property
- Preparing and presenting offers
- Facilitating negotiations on behalf of the Owner
- Managing contract documents related to such sale.
The Owner agrees to fully cooperate with the Agent and provide accurate information about the Property.
5. Commission Structure
The Parties agree on the following commission structure (the “Commission”):
% (percentage of final sale price or lease value) or $___________ (flat rate), to be paid to the Agent upon the successful completion of a sale, lease, or purchase.
The specific commission rate shall apply to total revenue generated from any transaction relating to the Property.
Commission Split (if applicable)
If there is another party, company, or organization involved, the commission split will be as follows:
____% to the Agent and ____% to ____________________________________________________________
(Name of Other Organization, Broker, or Person).
6. Payment Terms
The Owner agrees to pay the Commission in cash or via wire transfer upon the completion of a sale, lease, or other transaction. Payment shall be made no later than ____ business days after the transaction closes.
7. Entire Agreement
This Agreement constitutes the entire agreement between the Parties regarding the Property and supersedes all prior agreements, representations, and understandings. Any modifications to this Agreement shall be made in writing and signed by both Parties.
8. Term and Termination
This Agreement shall remain effective for a period of _____ months from the Effective Date or until the sale, lease, or purchase of the Property is completed, whichever occurs first.
Either Party may terminate this Agreement prior to the expiration of the period by providing _____ days’ written notice to the other Party.
9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of _________________.
10. Confidentiality and Disclosure
The Agent agrees to disclose all material facts regarding the Property to potential buyers and to comply with all applicable laws. Both Parties agree to maintain confidentiality regarding the terms of this Agreement, except where disclosure is required by law or necessary to complete the transaction.
11. Signatures
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
Owner
Name (Printed): ____________________________________________________________
Signature: _________________________________________________________________
Date: ________________________
Agent/Broker
Name (Printed): ____________________________________________________________
Signature: _________________________________________________________________
Date: ________________________
Witness (if applicable)
Name (Printed): ____________________________________________________________
Signature: _________________________________________________________________
Date: ________________________
This commission contract is designed as an example. Users should consult a qualified contract professional for compliance with local laws prior to use.
Disclaimer
This Real Estate Commission Agreement template is provided for informational purposes only and is not a legal document. It does not constitute legal advice and should not be relied upon as a substitute for consulting a qualified legal or contract professional.
You are strongly encouraged to seek advice from a licensed attorney or contract professional to ensure that this template complies with local laws and regulations relevant to your specific situation.
By using this template, you acknowledge and agree that you assume all responsibility for its application and any outcomes resulting from its use. The creator is not liable for any errors, omissions, or legal consequences arising from the use of this template.
Always consult a qualified professional before entering into any legal agreement.
Check Back for Updates to our Real Estate Agent Commission Agreement Template
I try to keep refining this commission agreement template to reflect the latest industry practices. I would do it with any other agreement, and I’ll continue that tradition here. You’ll want to check back regularly for updates. Every tweak and addition is designed to help you stay competitive, make smoother deals, and avoid the pitfalls of using outdated or incomplete agreements. It’s your blueprint for success in a changing market. Don’t miss out.
For guidance on setting up comprehensive procedures and policies, consider our Free Real Estate Policy and Procedures Manual Template.
