A real estate broker offers services as agent in matters involving the sale, purchase, rental, and financing of real property. When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions and in a final meeting, the new owners take possession of the property. They also may help to arrange favorable financing from a lender for the prospective buyer; often, this makes the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for closing sales; in others, lawyers or lenders do.
Agents and brokers spend a significant amount of time looking for properties to sell. They obtain listings -- agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, in order to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus agents who sell a property that they themselves have listed can increase their commission.
Rhode Island Real Estate Sales Representative Agreement with Broker is a legally binding contract between a licensed real estate salesperson and a real estate broker, outlining the terms and conditions for the salesperson's representation of the broker in real estate transactions. This agreement establishes the relationship between the sales representative and the broker, stating their respective rights, obligations, and compensation arrangement. Key terms included in a Rhode Island Real Estate Sales Representative Agreement with Broker may include: 1. Parties: The agreement identifies the sales representative (also known as an agent) and the broker by their legal names and addresses. 2. Term: It specifies the duration of the agreement, outlining either a fixed term (e.g., six months, one year) or indicating an open-ended agreement that can be terminated with notice by either party. 3. Scope of Representation: The agreement defines the sales representative's role and responsibilities, such as marketing properties, prospecting clients, negotiating contracts, and providing other real estate-related services on behalf of the broker. 4. Exclusive Representation: This clause clarifies whether the sales representative will exclusively represent the broker or if they can engage in transactions with other brokers or as an independent agent. 5. Compensation: The agreement outlines how the sales representative will be compensated for their services. It typically includes details about commissions, referral fees, bonuses, and expense reimbursements. The specific commission structure, such as a percentage of the sale price or a flat fee, should be clearly mentioned. 6. Termination: This section explains the circumstances under which either party can terminate the agreement. It may include provisions for notice periods, breaches of contract, or other triggering events. 7. Confidentiality and Non-disclosure: Rhode Island Real Estate Sales Representative Agreement may require the sales representative to keep all sensitive business information confidential and restrict them from disclosing it to competitors or third parties. 8. Code of Ethics and Standards: The agreement may reference adherence to the National Association of Realtors (NEAR) Code of Ethics or Rhode Island-specific real estate laws and regulations. Types of Rhode Island Real Estate Sales Representative Agreements with Broker might include: 1. Exclusive Sales Representative Agreement: This agreement grants the sales representative exclusive rights to represent the broker within a specific time frame. 2. Non-Exclusive Sales Representative Agreement: This agreement allows the sales representative to work with multiple brokers simultaneously. 3. Independent Contractor Agreement: This type of agreement defines the independent contractor relationship between the sales representative and the broker, emphasizing that the sales representative is not an employee of the broker. 4. Referral Agreement: In some cases, a sales representative may simply refer potential clients to a broker, rather than actively engage in the sales process. The referral agreement establishes the terms of compensation for these leads. 5. Team Agreement: If a sales representative works as part of a real estate team within a brokerage, a team agreement may govern their activities, roles, and compensation structure. It is essential for both the sales representative and the broker to carefully read, understand, and negotiate the terms of a Rhode Island Real Estate Sales Representative Agreement before signing, as it is a binding contract that sets the foundation for their professional relationship.
