A real estate agent agreement is an important document to be prepared in case you are buying or selling a property through a real estate agent or on the contrary, if you are a real estate agent yourself, helping in buying or selling someone else’s property.
Importance Of A Real Estate Agent Agreement
The real estate agent agreement describes how the property agent will help market, advertise and sell the property for the highest possible price. It should also include the amount of fee payable to the agent in helping with the transaction, which is generally a fixed percentage of the total sum involved in the transaction.
On the other hand, there would be cases wherein an owner, for some reason does not want to sell his property on his own, then a real estate agent can be given the right to sell the property and be reimbursed for the services.
So whether you are an independent agent or a part of a brokerage firm, or in other context, you may either be buying or selling a property using the services of an agent or a brokerage firm, the first and foremost thing to do is to make a real estate agreement.
Be Cautious While Choosing A Property Agent
One should be very careful while appointing an agent or availing the services of a brokerage firm to buy/sell property. The antecedents of the broker or that of the firm he represents should be thoroughly verified in order to avoid unnecessary legal hassles.
A sound real estate agent agreement should clearly state mutual rights and obligations of both the parties to avoid any litigation which may arise out of breaches committed by both the parties.
Important Clauses In Real Estate Agent Agreement
A typical real estate agent agreement should necessarily include the following clauses:
- Details of the buyer/seller of the property which includes name, address, etc.
- Details of the broker which includes name, address or if it is a brokerage firm address of such firm, name of proprietor etc.
- Consideration for which property shall be bought or sold through such an agent/firm.
- Time frame within which broker/firm shall sell the property (e.g. 1 year, 6 months).
- Commission of the broker/firm for rendering his services. The commission is usually a fixed percentage of the consideration amount which is payable at the time of execution of the sale deed.
- Details of the property to be bought or sold.
- An assurance from the buyer/seller to the broker that the property in question is free from all encumbrances and the title is clear.
- A declaration by the buyer/seller that the broker/firm has been appointed on his behalf to deal with his property in a due diligent manner and he has been vested with all rights for the execution of the same.
After including the above clauses, the agreement should be signed by two competent witnesses. The agreement shall then be printed on a stamp paper of minimum value depending on the place where it is to be executed to make it legally valid.
Whether you are an agent or a buyer/seller, we have a wide range of pre-drafted legal documents that are available on our website. You can customise any of our templates to add any additional requirements, our support team can help you with that. Our online legal document templates are lawyer verified and can be delivered to your home.