What is a Real Estate Brokerage Agreement ?
Real Estate Brokerage Agreement allows a property owner/buyer to empower a real estate broker to locate a buyer/seller for the property on their terms in exchange for the broker receiving a commission.
This contract delegates sole authority to the broker to represent the seller/buyer and their properties to prospective buyers/sellers. It is more of a job contract than a real estate deal.
By outsourcing that task to the broker, it helps to alleviate the strain on the buyer/seller of the property to find third-party/buyer/sellers of their individual property.
Why use a Real Estate Brokerage Agreement ?
The brokerage agreement specifies how the broker will advertise and locate prospective buyers or sellers of the property in order to obtain the highest feasible price and profit. It also includes the commission fee for selling/renting.
There are several types of brokerage agreements that might apply to either the listing or purchasing side of a transaction. These agreements spell out each party’s duties and responsibilities.
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