When it comes to selling a property, it`s important for both the seller and the real estate agent to have a clear understanding of their roles and responsibilities. This is where a seller representation agreement (SRA) comes into play.
An SRA is a legal document that outlines the terms and conditions of the agreement between the seller and the real estate agent. It specifies the agent`s commission, the duration of the agreement, and the scope of the agent`s responsibilities in marketing and selling the property.
If you`re a seller or a real estate agent, it`s important to have a solid understanding of what to include in an SRA. Here is a sample SRA that can provide a guideline for creating your own agreement:
Seller Representation Agreement
This agreement is made on [date] between [seller name], hereafter known as “the Seller”, and [agent name], hereafter known as “the Agent”.
The Seller hereby appoints the Agent as the exclusive listing agent for the property located at [property address] for a duration of [duration of agreement]. The Agent agrees to use their best efforts to market and sell the property during this period.
Commission
The Seller agrees to pay the Agent a commission of [commission rate] of the sale price of the property in the event of a successful sale. This commission shall be paid at the time of closing.
Scope of Services
The Agent agrees to provide the following services:
1. Conduct a Comparative Market Analysis (CMA) and suggest a reasonable listing price for the property.
2. List the property on the Multiple Listing Service (MLS) and other relevant real estate websites.
3. Market the property through various channels, including social media, email marketing, and print advertising.
4. Host open houses and show the property to potential buyers.
5. Negotiate offers and contracts on the Seller`s behalf.
The Seller agrees to provide the necessary documents and information required for the Agent to carry out their duties.
Termination
Either party may terminate this agreement with written notice to the other party. However, if the Seller terminates the agreement before the end of the duration, they may be liable for the commission to the Agent.
Conclusion
A seller representation agreement is an important document that protects both the seller and the real estate agent. By outlining the expectations and responsibilities of both parties, an SRA can help ensure a smooth and successful transaction. While this sample agreement can serve as a guide, it`s important to consult with a real estate attorney or broker to create an agreement that is tailored to your specific needs and requirements.