Updated September 27, 2023
The real estate consultant agreement is a service contract between an independent contractor and a client who is seeking professional advice regarding the purchase, sale, or development of a property. The document must be filled out to reflect the details of the agreement, including compensation, the contract’s term, and the services for which the consultant is being hired. The real estate consultant’s most common role is to assist clients who wish to invest in real estate. Using their professional knowledge regarding the local real estate market, the consultant can assist the client in reaching their investment goals. The contract becomes effective once both individuals have signed it. Unless otherwise stated in the form, either party can terminate the contract by issuing a written termination notice.
Listing Agreement – Traditional contract between a licensed real estate broker and a client seeking to buy or sell real estate. The broker is paid a commission (%) based on the sales price of the property sold.
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What is a Real Estate Consultant?
A real estate consultant is an individual who advises their clients on real estate investment strategies, construction project planning, and current market trends. Unlike a real estate agent, a consultant is not paid a commission and, therefore, is better able to provide unbiased advice to their clients. For instance, a consultant can give their client a clear estimate of a property’s actual market value without having any motive to exaggerate or understate. Ultimately, the role of the consultant is to assist the client in achieving their goals regarding real estate, which could involve the purchase, sale, and development of a property.
Does a Real Estate Consultant Need to be Licensed?
No. A real estate consultant is not technically required to operate as a real estate consultant, although, most consultants have completed state-mandated training and obtained a real estate agent or broker’s license. A real estate agent is required to have a license in order to legally represent their clients in the purchase and sale of a property. Because a consultant is acting as an advisor and not a representative to the client, no license is required. Every state’s licensing procedure is different, however, all of them have certain pre-licensing requirements, which include training and examination with a state-approved real estate program. Some states may also have post-licensing and continuing education requirements in order for a license to be held in good standing. Once an agent has acquired their license, they must find a broker to associate themselves with before they can begin representing clients.
How Much Does a Real Estate Consultant Make?
Real estate consultants usually work for a flat hourly rate or an agreed sum for advising on a single transaction. The more experienced and successful the consultant is, the higher the rate that they can expect their clients to pay. The amount that clients will be charged can also fluctuate greatly based on the nature of their requested service. For instance, if the consultation is for a large development project or if the client needs special insider information, the consultant may charge more for their time and expertise. A consultant is often an agent or broker who is supplementing their income from commissions with consulting work and, therefore, will set their hourly fee relative to the level of income that they are accustomed to. However, anyone with experience in real estate investment and development can professionally advise clients as an independent contractor.
Sample 1
- Uses: For marketing, contract review, and partnership options.
- Download: PDF
REAL ESTATE CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT is made as of [DATE], by and between [CLIENT’S NAME] (“Client”) and [CONSULTANT’S NAME] (“Consultant”).
Background
Client desires to sell the Property, known as [ADDRESS]. Client desires to engage Consultant, who has expertise and qualifications in areas beneficial to Client’s intentions. Client desires to retain the services of Consultant and Consultant agrees to render such services.
IN CONSIDERATION of the foregoing and of the mutual covenants set forth below, the parties agree as follows:
1. Retention as Consultant: Client hereby retains Consultant, and Consultant hereby agrees to render consulting services to the Client, upon the terms and conditions set forth herein.
2. Duties: Consultant agrees that he will perform those services requested of him by Client, by selection from the menu of services and respective fees listed below:
A. MARKETING: Consultant to provide marketing advice and exposure via different media, such as Internet and personal networking. Consultant will refer any leads to the client.
Item A is selected: Client initial ______ Consultant initial ______
B. REVIEW OF CONTRACTS AND DISCLOSURES: Consultant to review the documentation of Client’s transaction and provide the same to the Client, Client’s attorney or agent for review and negotiation as needed.
Item B is selected: Client initial ______ Consultant initial ______
C. PARTNERSHIP AND REFERRAL: Consultant to locate and/or provide partners to the transaction, in the capacity of financing and/or equity partners.
Item C is selected: Client initial ______ Consultant initial ______
3. Compensation: Client shall pay to Consultant, as compensation for the services rendered, the sums indicated for the duties listed above, for any prospects, clients and referrals brought to the Client by the Consultant, from the time this Agreement is signed.
This fee will be as follows: % [#] of [TOTAL AMOUNT] or $[#] of [TOTAL AMOUNT].
4. Term: This Agreement shall commence on the date first written above and shall continue until such time as the Property is sold.
5. Termination: The parties agree that either Client or Consultant, by written notice, may terminate Consultant’s engagement under this Agreement at any time for any reason. If Client terminates the agreement, Consultant shall be paid a fee on an as earned basis. If the property in question is under contract per Consultant effort, the Client will owe the Consultant the full consultation fee per schedule in paragraph #4.
6. Assumption of Risk: Client acknowledges that he/she is strongly advised to seek professional assistance in real estate transactions, especially in these areas: (1) establishing price; (2) ensuring that all disclosures are properly made; (3) negotiation of offers; (4) finalizing terms and conditions; (4) troubleshooting the transaction and coordination of escrow. To the extent Client declines to obtain this assistance, Client knowingly assumes risk.
IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first written above.
Consultant ________________
Client ________________
Client ________________
Sample 2
- Uses: For the payment of leads and general marketing of a property.
- Download: PDF
REAL ESTATE CONSULTANT AGREEMENT
I. The Parties. This Real Estate Consultant Agreement (“Agreement”) is made effective as of [DATE], by and between:
Real Estate Consultant: [CONSULTANT’S NAME] with a street address of [ADDRESS], City of [CITY], State of [STATE], (“Consultant”)
AND
Client: [CLIENT’S NAME] with a street address of [ADDRESS], City of [CITY], State of [STATE] (“Client”).
II. Services. Consultant agrees to provide the following Services: [LIST SERVICES] (“Services”).
III. Term. The Services shall commence on [DATE], and end: (check one)
☐ – On the date of [DATE].
☐ – At completion of the Services performed.
☐ – Upon either party may terminate this Agreement with [#] days’ notice.
☐ – Other. [DESCRIBE].
IV. Compensation. In consideration for the Services provided, the Consultant is to be paid in the following manner: (check all that apply)
☐ – Per Hour. $[AMOUNT] /hour.
☐ – Per Job. $[AMOUNT] for the completion of the Services.
☐ – Commission. [#]% commission based on [DESCRIBE].
☐ – Other. [DESCRIBE].
V. Contingency. As part of the Consultant’s Pay: (check one)
☐ – There SHALL be a contingency-fee arrangement in accordance with: (check applicable)
☐ – [#]% of [FULL AMOUNT].
☐ – There SHALL NOT be a contingency-fee arrangement as part of this Agreement.
VI. Payment. Consultant shall be paid, in accordance with section IV: (check one)
☐ – On a ☐ weekly ☐ monthly ☐ quarterly basis beginning on [DATE].
☐ – At completion of the Services performed.
☐ – Upon the Client receiving an Invoice from the Consultant.
☐ – Other. [DESCRIBE].
VII. Retainer. The Client is: (check one)
☐ – Required to pay a Retainer in the amount of $[#] to the Consultant as an advance on future Services to be provided (“Retainer”). The Retainer is: (check one)
☐ – Refundable.
☐ – Non-Refundable.
☐ – Not required to pay a Retainer before the Consultant is able to commence work.
VIII. Expenses. The Consultant is: (check one)
☐ – Responsible for all expenses. The Consultant shall be responsible for all expenses related to providing the Services under this Agreement.
☐ – Reimbursed for ONLY the following expenses: [LIST].
☐ – Not required to pay or be responsible for any expense in connection with the Services provided.
IX. Disputes. If any dispute arises under this Agreement, the Consultant and the Client shall negotiate in good faith to settle such dispute. If the parties cannot resolve such disputes themselves, then either party may submit the dispute to mediation by a mediator approved by both parties. The jurisdiction for any dispute shall be administered in [COUNTY] County, State of [STATE].
X. Legal Notice. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in-person or deposited in the United States Postal Service via Certified Mail with return receipt. If different from the mailing address in Section I, enter below:
Client’s Address: [ADDRESS]
Consultant’s Address: [ADDRESS]
XI. Return of Records. Upon termination of this Agreement, the Consultant shall deliver all records, notes, and data of any nature that are in the Consultant’s possession or under the Consultant’s control and that are of the Client’s property or relate to Client’s business.
XII. Waiver of Contractual Right. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement.
XIII. Independent Contractor Status. The Consultant, under the code of the Internal Revenue (IRS), is an independent contractor and neither the Consultant’s employees or contract personnel are, or shall be deemed, the Client’s employees. In its capacity as an independent contractor, the Consultant agrees and represents:
a.) Consultant has the right to perform Services for others during the term of this Agreement;
b.) Consultant has the sole right to control and direct the means, manner, and method by which the Services required under this Agreement will be performed;
c.) Consultant has the right to hire assistant(s) as subcontractors or to use employees to provide the Services under this Agreement.
XIV. State and Federal Licenses. The Consultant represents and warrants that all employees and personnel associated shall comply with federal, state, and local laws requiring any required licenses, permits, and certificates necessary to perform the Services under this Agreement.
XXII. Additional Terms and Conditions. [LIST]
XXIII. Entire Agreement. This Agreement, along with any attachments or addendums, represents the entire agreement between the parties. Therefore, this Agreement supersedes any prior agreements, promises, conditions, or understandings between the Client and Consultant. This Agreement may be modified or amended if the amendment is made in writing and is signed by both parties.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates written hereunder.
Consultant’s Signature _________________________ Date _______________
Print Name _________________________
Client’s Signature _________________________ Date _______________
Print Name _________________________