Real Estate Client Service Agreement

What a good one includes

• A clear definition of the specific services provided, outlining whether you are acting as a listing agent, buyer's agent, or dual representative.
• Exact start and end dates for the agreement, including any automatic expiration or extension clauses.
• A detailed breakdown of the commission percentage or flat fee, specifying exactly when and how the payment is earned and disbursed.
• A holdover protection clause that secures your commission if the client purchases a property you introduced them to shortly after the agreement expires.
• A mutual obligations section listing both your marketing and fiduciary duties and the client's responsibility to provide honest information and act in good faith.
• A clear cancellation policy detailing how either party can terminate the agreement early and any associated termination fees.

Common mistakes to avoid

• Leaving the commission structure vague or failing to specify who pays the fee in various transaction scenarios.
• Forgetting to define the exact geographical scope or property type, which can accidentally bind clients to you for transactions you aren't actually handling.
• Omitting a clear dispute resolution clause, leaving you vulnerable to expensive litigation instead of mediation.
• Using overly dense legal jargon that intimidates clients and delays the signing process.

Frequently asked questions