What does a representation agreement entail?

A representation agreement is a legal contract between a broker and a client that outlines the terms of their professional relationship, particularly regarding the provision of brokerage services in real estate transactions. This type of agreement is essential in establishing the duties and responsibilities of both parties, detailing aspects such as the scope of services provided by the broker, the payment of commissions, and the duration of the agreement.

In a representation agreement, the broker typically agrees to represent the client's interests in the buying or selling process, ensuring that the client receives informed advice and guidance throughout the transaction. This agreement is foundational in real estate, as it clarifies the expectations and obligations, thereby protecting both the client and the broker.

On the other hand, options such as listing a property, property management services, or a lease agreement pertain to specific transactions or services and do not encapsulate the broader relationship established by a representation agreement. These are different types of contracts that might arise in real estate but do not fundamentally represent the client-broker relationship defined by a representation agreement.