Forms. We have them, AAR has them, and professional golfers have them. And while our forms might not be as good as Phil Mickelson’s, we do have some very popular documents. Two of the most widely used forms we provide are the EA and ER forms, which are also the forms we get asked about the most. If you’re questioning which one to use, keep reading to learn how you can achieve the perfect form.
In an Exclusive Agency agreement, the Broker receives a payment from the client only if the Broker is the cause of the sale (re: they locate a buyer). In the event that the seller find a buyer on their own, the commission for the Broker is waived.
In an Exclusive Right agreement, the Broker receives payment regardless of how the buyer comes to the sale. This means that no matter which party (Client or Broker) secures a buyer, the Broker receives the commission.
Which Form To Use?
According to the MLS, 97% of the closed sales in 2015 were made using ER forms. However, many Brokerages utilize the EA forms for a variety of reasons. If you’re unsure which one to use, talk to your Broker to see what is standard for your office.
The below class definitions can also help you select the best form.
Class 1 = Residential Sale
Class 2 = Rental
Class 3 = Land and Lots