48+ Sample Agent Agreement

FREE Agent Agreement s to Download

48+ Sample Agent Agreement

What Is an Agent Agreement?

Types of Agents

Why People Hire Agents

How to Create an Agent Agreement

FAQs

What is the purpose of an agency agreement?

What do you mean by agent contracts?

What is an agency agreement in real estate?

What Is an Agent Agreement?

An agent agreement is a formal agreement made between an agent and a principal. In a typical arrangement, the former acts as a liaison or middleman for the latter in business affairs and other related transactions. 

According to online data published by the U.S. Bureau of Labor Statistics, the top 3 paying states for agents and business managers of talent (i.e., artists, performers, athletes) were North Carolina, Connecticut and Ohio. As of May 2020, North Carolina’s annual mean wage was estimated at $117,880. Despite having the highest employment level of agents, New York only came in 5th place with an annual mean wage of $101,550.       

Types of Agents

There can be many different kinds of agents across various industries or fields. And depending on the type of agent, tasks and functions may vary in a nuanced way too. But the basic expectation of an agent is to act as the authorized representative of his or her principal, whether it be an individual or a company. The following are common examples of the various kinds of agents.  

Real Estate Agent. One of the most well-known types of agents are real estate agents. When people look to buy a piece of property, whether a house or land, most of them go through an intermediary who assists them in their purchase or rental. A real estate agent brokers a deal between a seller and a buyer. These types of agents often get a commission or a slice of the profit when a sale is finalized. There are agents who represent certain firms or agencies; others are self-employed in a sense that they are not formally tied to a particular organization. The transactional nature of a real estate agent’s job is often portrayed in mainstream media as well. They are the people that show potential buyers properties that are for sale or rent while giving them house tours, finalizing agreements, etc. Talent Agent. Another common type of agent is a talent agent. Sometimes referred to as an artist’s agent, most celebrities and public figures hire agents to help them navigate the industry. The work of an agent in the Hollywood sense is so common, so much so that one agent may even handle a number of talents at the same time. And because they represent another person in an official capacity, talent agents can have a broad job description. But some basic functions would include booking roles or jobs, setting meetings, and marketing or promoting the talent within the industry. A celebrity or artist may have one appointed agent or even several, but there are also a lot of public figures (e.g., models) that are handled by a talent agency or firm. Insurance Agent. The insurance industry is a billion dollar industry that employs millions of people around the world. Whether it is life insurance, health insurance, event insurance or auto insurance, insurance companies have clients from all backgrounds. And these days as uncertainty continues to grow amidst an ongoing pandemic, more people have jumped on the bandwagon of purchasing insurance policies. As the market for insurance grows, the job pool for insurance agents widens too. An insurance agent typically acts as an official representative of a company and deals directly with clients on the latter’s behalf. Aside from sourcing clients and selling policies, these types of agents can also create contracts on behalf of an insurance company, negotiate with clients, and offer financial advice.Stockbroker. Similar to an insurance agent, a stockbroker is simply an authorized representative that facilitates, manages, and executes the buying and selling of stocks in the market. But instead of handling insurance, these types of agents handle investments. The quintessential stockbroker has been portrayed several times in mass media. The character of Jordan Belfort as portrayed by Leonardo DiCaprio in “The Wolf of Wall Street” is one such example. They buy and sell market stocks on behalf of investors or clients. They are often deemed as financial experts or professionals and help clients grow their money. A stockbroker’s clientele can range from individuals to institutions; and a majority of them are employed by brokerage firms or organizations.
   

Why People Hire Agents

People may feel the need to hire an agent based on several reasons. Although each may have his or her own personal reason, there are a few fundamental and universal grounds for engaging the services of an agent. The following examples are just some of those major reasons.

To seek assistance. Not all people can be expected to do everything themselves. Either people do not possess the right skills or expertise or they have the means to engage the services of others. The fact that there is quite a demand for agents means that there is indeed a job market for authorized representatives. In some cases, it is more logical and efficient to have an appointed representative to perform tasks and jobs on your behalf. If, for example, a big company cannot attend to all clients equally, assigning an agent to each client may fill in that gap. It is also more convenient for the clients themselves, as any problems or concerns can be coursed directly through the agent. Unable to afford the time. Other people simply lead too busy lives to attend to all their affairs. Whatever the reason for their busyness, it only makes sense to appoint an official liaison who can act and work on their behalf. This is especially true for people who may be more advanced in age. They cannot do it themselves so they hire other people to perform tasks and duties on their behalf. Whether it is managing investments or dealing with properties, some individuals prefer to have someone else handle these for them so they can focus on other areas of their life. It takes a considerable amount of effort to maintain stocks, connections, or even schedules. Having an appointed representative to look after these for you will definitely bring you more ease and convenience. For professional guidance and advice. In many cases, people hire agents because they seek guidance or need professional advice. This is the case for many celebrities or artists, sometimes having an agent represent you in the industry can make it a lot easier to establish connections or even snag potential roles. If an up-and-coming talent is new in town or is still trying to make a name for himself or herself, getting an agent could be a wise decision. A talent agent, especially an experienced one, can help his or her principal grow and succeed in their respective industries by booking roles, casting them in commercial projects, etc. In addition to providing professional support and advice, principals can access an agent’s network or social circles. This is significant because in a lot of cases in the entertainment industry, connections and resources matter almost as much as fame itself.

How to Create an Agent Agreement

The content of an agent agreement will highly depend on the nature of the relationship between the two parties involved. However, there is a certain structure that can be followed in creating a basic agreement. If you’re looking for quick and easy templates, browse the selection above and choose a template that suits your needs. Once you have picked one, follow the simple steps below.  

Step 1: Identify the Parties

The first step in crafting any kind of agreement is establishing the parties entering into the contract. Whether it is an individual or a firm, make their identities known by providing the complete names. Although optional, you may include their complete addresses as well. Formally introducing the parties makes for a standard opening statement in your contract agreement. This section should be clear, brief, and straight to the point. Assigning a title to either party is required too. Generally, the authorized representative is referred to as the agent; while the party being represented is called the principal.    

Step 2: Define the Roles

An important part of an agent agreement is the definition and delineation of tasks. Expectations must be set and responsibilities must be clarified. Since the role of an agent would vary across different industries, duties and functions should be clearly stated and described within the agreement. To make it more organized, you can enumerate each function one by one similar to a job description format. You can use bullet points or numbers to properly distinguish one task from the other. Knowing the obligations and responsibilities of each party is key to managing expectations.     

Step 3: Establish the Terms

After defining the roles and responsibilities, set the terms and conditions that will serve as a guide to conducting the agreement. Just as previously mentioned, drawing provisions or creating stipulations will greatly help inform expectations on both sides. Further, you want to make certain it is a comprehensive list of terms and conditions. Everything ought to be covered- from payment terms, confidentiality, liability, scope of work, limitations, work hours, to termination of contract. The format of this section would also depend on you. Ideally, each specific condition is stated individually in paragraph form.    

Step 4: Formalize the Agreement

The last step is formalizing the agreement contract. Once you have established all the conditions or provisions, you need to reaffirm that both parties are amenable to the terms of agreement. A simple declarative statement confirming the agreement of the agent and principal should be enough. Leave an adequate amount of space at the end of the contract for both parties to affix their name, signature, and date.   

FAQs

What is the purpose of an agency agreement?

The purpose of an agency agreement is to establish guidelines for conducting a business relationship between a principal and an agent or agency. It is a formal agreement that sets the tone for the partnership. Ideally, it is also meant to protect the interest of both parties.

What do you mean by agent contracts?

An agent contract is a formal and legal contract made between an agent and a principal. The principal authorizes the agent to conduct business affairs and transactions on his or her behalf.

What is an agency agreement in real estate?

In real estate, an agency agreement is a written agreement between a client (i.e., buyer) and an agent or firm. The latter acts as the authorized liaison between the client and developer (the company or individual selling the real estate).

An agent can be called many things including an intermediary and middleman. But to ensure a healthy working relationship between an agent and his or her principal, there must be a sound and coherent agent agreement contract. Browse the sample templates above to start customizing your own agreement today!