What does a signed agency agreement typically cover?

A signed agency agreement typically outlines the negotiable fees for the services provided by the real estate professional in handling the transaction. It specifies the compensation structure, which can include details on how commissions are calculated, any fees associated with specific services, and conditions under which these fees may change. This clarity helps both the client and the agent understand the financial aspects of the agency relationship.

While elements such as responsibilities of the buyer and seller and the duration of the transaction process can be part of the contract, they are not the primary elements that define the agency relationship in terms of compensation. The focus of an agency agreement generally emphasizes the agreed-upon payment for the agent's services, making it critical for establishing mutual understanding regarding the financial obligations involved in the real estate process.