Broker Commission Contract Sample

If you`re looking for a broker commission contract sample, you`re likely in the process of hiring a broker or real estate agent to help you sell your property. A commission contract outlines the terms of the agreement between you and the broker, including the commission percentage and any other fees associated with the sale.

When creating a commission contract, it`s important to ensure that it is legally binding and protects both parties involved in the transaction. To help you get started, we`ve put together some key elements that should be included in your broker commission contract.

1. Commission percentage

This is the most important element of your commission contract. It sets the percentage that the broker will earn as commission on the sale of your property. The commission percentage is usually between 2-6%, but it can vary depending on the market and the broker`s experience.

2. Term of the contract

The term of the contract refers to the length of time the broker will be working with you. This can range from a few months to a year or more. It`s important to clearly define the start and end date of the contract, as well as any renewal options.

3. Listing price

The listing price is the price you are asking for your property. It`s important to clearly state the listing price in the contract, as the commission percentage is often based on this amount.

4. Marketing strategy

The marketing strategy outlines how the broker plans to market and advertise your property. This can include online listings, open houses, print advertisements, and more. It`s important to outline the specific marketing tactics that will be used to ensure that your property is effectively marketed.

5. Additional fees

In addition to the commission percentage, there may be additional fees associated with the sale of your property. These can include advertising fees or administrative costs. It`s important to clearly outline any additional fees in the contract, so that you are aware of all costs associated with the sale of your property.

When creating your broker commission contract sample, it`s important to seek the advice of a legal professional to ensure that the agreement is legally binding and protects both parties involved in the transaction. By including these key elements in your contract, you can ensure that you have a clear and comprehensive agreement in place with your broker or real estate agent.