What Should Be Included in a Real Estate Agent Contract?

Most people sign their agent agreement in under five minutes, usually on a tablet, usually in a driveway. Then they live with it for months. In Mississippi, that document is not optional and not a formality: exclusive listing and buyer agreements must be in writing, must have a definite expiration date, and must be furnished to you “at the time of signing.” (MREC Rule 3.2; Miss. Code § 73-35-21(1)(i)) Here is what the law requires it to contain, what the industry’s own guidance says it should contain, and the clauses to read twice before you sign.

The checklist

What Mississippi requires

For sellers, the rule is specific. “All exclusive listing agreements shall be in writing, properly identify the property to be sold, and contain all of the terms and conditions under which the transaction is to be consummated; including the sales price, the considerations to be paid, the signatures of all parties to the agreement, and a definite date of expiration.” (MREC Rule 3.2(B)) Two protections follow. “No listing agreement shall contain any provision requiring the listing party to notify the broker of their intention to cancel the listing after such definite expiration date,” and the agreement “shall clearly indicate” whether it is an “Exclusive Agency” or “Exclusive Right to Sell” listing. (MREC Rule 3.2(B))

For buyers, the principal broker must ensure that exclusive buyer agreements are “in writing and include, at a minimum, a clear disclosure that the agreement is an exclusive buyer representation brokerage agreement; all of the terms and conditions under which the buyer will rely upon the broker or brokerage … including the considerations and any compensation to be paid; a definite date of expiration; and all necessary signatures.” (MREC Rule 3.2(C)(3))

Separately from the agreement itself, every Mississippi licensee must give you the state’s Working With a Real Estate Broker disclosure at the first substantive contact. It spells out the duties your agent owes you and tells you the agent “cannot give you legal or financial advice.” (MREC form) That form is a disclosure, not a contract; post #14 in this series explains it.

What NAR’s settlement added for buyers

Since August 2024, buyer agreements used by agents in most MLSs must also meet five conditions. They must “specify and conspicuously disclose the amount or rate of any compensation the MLS Participant will receive from any source, or how this amount will be determined”; the amount “must be objectively ascertainable and may not be open-ended”; the agreement must state that agents “may not receive compensation from any source that exceeds the amount or rate agreed to with the buyer”; it must “disclose in conspicuous language that broker commissions are not set by law and are fully negotiable”; and it must “include any provisions required by law.” (NAR, Written Buyer Agreements 101)

The practical effect: your buyer’s agent’s fee is a number or formula you can read, it cannot be “whatever the seller offers,” and the agent cannot collect more than that number even if a seller offers more. If the seller offers less, the difference is a negotiation between you, your agent, and the seller.

The clauses the law leaves to you

This is where agreements differ, and where you should slow down.

Exclusive right to sell vs. exclusive agency. Under an exclusive right to sell, the broker is paid regardless of who finds the buyer, including you. Under exclusive agency, you can sell to a buyer you find yourself without owing the fee. Mississippi requires the agreement to say which one it is. (MREC Rule 3.2(B)) Most listings are exclusive right to sell; if you have a likely buyer already (a neighbor, a tenant, a relative), ask for a named exclusion.

Term. The expiration date is required; its length is not. Sellers’ homes took a median four weeks to sell in 2025, and Mississippi homes were going pending in about 36 days in 2026. (NAR 2025 Profile of Home Buyers and Sellers; Zillow) A 90-day listing is reasonable; a 12-month listing with no cancellation clause is not. For buyers, NAR notes the term can be anything from “one day, one month, one house, one zip code.” (NAR)

Services. NAR’s guidance says agreements “should clearly articulate the services the MLS Participant will provide.” (NAR) Most forms do not. Ask for an attached schedule: photography, MLS entry, open houses, showing feedback, weekly updates for sellers; search criteria, tour arrangement, offer drafting, inspection negotiation for buyers. A fee without a service list is a price without a product.

Termination. NAR tells agents that agreements “may include provisions addressing termination with cause and without cause by both the buyer and the MLS Participant.” (NAR) “May” means many agreements do not. Ask for a clause letting you cancel with written notice, and ask what, if anything, you owe if you do. Post #25 in this series explains why this clause matters most when the agent is also the broker.

Protection period. Also called a carryover or tail clause: if you cancel and then buy a home the agent showed you (or sell to a buyer the agent procured) within a set window, the fee is still owed. NAR describes it as compensation owed if the buyer “subsequently executes a purchase agreement within an agreed upon time following termination.” (NAR) Windows of 30 to 90 days are common; some run to 180. (Homes.com) Ask for a shorter window and a requirement that the agent deliver, at termination, a written list of the properties or buyers it covers.

Dual agency and conflicts. Mississippi law makes “acting for more than one (1) party in a transaction … without the knowledge of all parties for whom he or she acts” grounds for discipline. (Miss. Code § 73-35-21(1)(e)) Your agreement will likely ask for advance consent to dual agency or designated agency. You can decline, or you can require that consent be obtained in writing at the time it arises rather than in advance. NAR suggests agreements address “disclosure and consent for representing other buyers submitting offers on the same property, dual agency, designated agency, or transaction brokerage.” (NAR)

Fees beyond the commission. Watch for retainers, “transaction,” “administrative,” or “compliance” fees. NAR notes agreements “may agree to a retainer fee and address whether any retainer is included in total compensation, credited against compensation and/or refundable.” (NAR) Every dollar should appear in one place with a total.

Dispute resolution. Agreements “may include mandatory or optional alternative dispute resolution, such as mediation or arbitration,” and may “waive trial by jury and class actions.” (NAR) Mandatory arbitration is common and not necessarily bad, but you should know it is there.

Consumer-protection language. NAR recommends agreements include confidentiality duties, the Equal Housing Opportunity statement, and “warnings regarding wire fraud as well as video and audio recording by sellers while touring a home for sale.” (NAR) The wire-fraud warning in particular is worth reading; it is there because buyers lose closing funds to spoofed emails.

What the numbers say about how people actually sign

Most people sign the first agreement put in front of them: 80% of sellers and about three-quarters of buyers contacted only one agent. (NAR 2025 Profile) Fees are negotiable by law, yet the average total commission in Mississippi sits at 5.59%, close to the national 5.46%, which suggests most people are not negotiating. (Clever Real Estate; NAR) NAR itself cautions agents “to avoid pre-filling key terms like length of the agreement and compensation.” (NAR) If the form arrives with the fee and the term already typed in, that is a draft, not a decision.

Five things to do before you sign

1. Ask for the agreement a day early. Read it somewhere other than a driveway.
2. Find the five numbers: fee, term, protection period, any additional fees, and the cancellation terms. If any is missing, ask why.
3. Attach the services list. Write it in by hand if you have to; the agent initials it.
4. Strike or amend what you do not accept. Agreements are negotiable; a blanket advance consent to dual agency, a 12-month term, or a 180-day tail are all fair to push back on.
5. Keep your copy. The law entitles you to it at signing. (Miss. Code § 73-35-21(1)(i)) Save the PDF where you can find it in month four.

Frequently asked questions