Commission Agreement
I'd like to share a little more info about the FL - Commission Agreement (FRCA-7). This form is designed to be between a brokerage firm and either a seller or landlord (owner). The key terms are the name of a prospect, a commission amount, and a deadline for the owner and prospect to sign a contract or lease (180 days if left blank). There are a few additional details, but this short one-page commission agreement is straightforward. It can be used for residential, commercial sales or leases any time an owner agrees to compensate a brokerage company for procuring a prospect.
Compensation should not go into the additional terms because such clauses may not be enforceable by the broker because the brokers are not parties to the contract. It is also IMPORTANT to note that you are a transaction broker for the seller unless otherwise disclosed in writing, even with just a commission agreement (as opposed to a listing agreement). If you wish to have NO relationship with the seller, you need to add a no relationship disclosure.
Dalton Wade always strongly recommends a written agreement of compensation (commission agreement, listing agreement or buyer broker agreement).
How to find the blank FL - Commission Agreement (FR CA-7) in Dotloop:
-Go to your Initial Docs folder
- Click ADD DOCUMENT (to the right of the folder name)
- Click TEMPLATES
- Scroll the down the list of folders on the left to COMMON ADDENDA
- Click COMMON ADENDA
- Scroll to form named: “FL - Commission Agreement (FR CA-7)”
- Check the box next to the form name
- Click COPY
How to find the blank No Brokerage
Relationship Disclosure in Dotloop:
-Go to your Initial Docs folder
- Click ADD DOCUMENT (to the right of the folder name)
- Click TEMPLATES
- Scroll down the list of folders on the left to LIST RESIDENTIAL: INITAL DOCS or BUY: BASE PACKAGE (it is in both folders)
- Scroll to form name: “No Brokerage Relationship Disclosure”
- Click the box next to the form name
- Click COPY
A licensee may have no brokerage relationship with either or both parties. The status must be disclosed and agreed before showing a property. A licensee acting in this capacity must still:
· Deal honestly and fairly.
· Disclose all known facts that materially affect the property’s value if those facts are not readily observable to the buyer.
· Account for all funds they receive.
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