Real Estate Brokerage Agreement

Prior to commencement of brokerage services, a written real estate brokerage agreement must be entered into between a real estate brokerage represented by a licensed real estate broker or licensed real estate salesman, and a real estate seller, lessor, buyer, or lessee. The brokerage agreement shall be in writing and a copy shall be provided to the seller, lessor, buyer, or lessee within three

(3)business days of the time of signing. The original and all electronic files shall be retained by the real estate brokerage.

(a)A brokerage agreement with the seller or lessor shall:

(1)include a definite start date and expiration date, which is effective without notice to the seller or lessor;

(2)state the amount of compensation to be paid to the brokerage, including authorization to receive the compensation from a person other than the seller or lessor;

(3)state whether the brokerage is authorized to cooperate and share compensation with another brokerage and to specify the amount of the compensation described as a percentage of the purchase price, a specific dollar amount, or a combination of both;

(4)explain the events or conditions that will entitle the brokerage to a commission or other compensation; and

(5)contain a provision for the cancellation of the brokerage relationship by either the seller or lessor or brokerage or by mutual agreement.

(b)The brokerage agreement with a buyer or lessee shall:

(1)include a definite start date and expiration date, which is effective without notice to the seller or lessor;

(2)state the amount of compensation to be paid to the brokerage described as a percentage of the purchase price, a specific dollar amount, or a combination of both;

(3)state whether the brokerage is authorized to receive some or all of the compensation to be paid from a person other than the buyer or lessee;

(4)state the buyer’s or lessee’s rights and obligations regarding the compensation to be paid to the brokerage and if the brokerage is authorized to receive some or all of the compensation to be paid from a person other than the buyer or lessee;

(5)explain the events that must occur or conditions that must be met in order for the brokerage to be entitled to a commission or other compensation; and CH. 104 REAL ESTATE REGULATIONS

(6)contain a provision for the cancellation of the brokerage relationship by either the buyer or lessee or brokerage or by mutual agreement.