The Compensation Agreement (SCR 120) Explained
This one-page form sets the expectations between the Listing Broker and the Buyer’s Broker regarding compensation.
It’s brief—but legally binding once signed—so every line matters.
👇 Let’s walk through it section by section.

Sections 1 & 2 – Parties and Property Information
This portion identifies the Listing Broker, Buyer’s Broker, and the Property Address.
Both names must appear exactly as they do on their brokerage licenses.
Leaving any line blank can cause confusion at closing.
Section 3 – Buyer’s Name
This clause ensures the Buyer is correctly identified—including affiliates or successors.
Be precise: if the Buyer’s name changes before closing, an amendment should be signed.

Section 4 – Term of Agreement
The offer of compensation is valid only for 30 days unless the buyer and seller are under a ratified contract within that time.
If no contract is executed, the agreement becomes null and void automatically.

Section 5 – Compensation Details
This is where you specify how the Buyer’s Broker will be paid—either a fixed dollar amount, a percentage, or other terms. Typically it's the percentage (Option 2)
Payment is due only at closing unless both parties agree otherwise in writing.

Section 6 – Arbitration Agreement
Any dispute between the brokers must be settled through binding arbitration under the latest NAR Code of Ethics and Arbitration Manual.
This keeps broker conflicts out of court and within REALTOR® governance.

Section 7 – Miscellaneous Clauses & Signatures
This section confirms the agreement is governed by South Carolina law and that commissions are negotiable—not set by law.
Both Broker-in-Charge signatures (or authorized associates) finalize the agreement.

That’s a wrap on the SCR 120!
This simple one-page form carries a lot of weight. Make sure you understand when it applies, how to fill it out correctly, and what each compensation option means before sending it off for signature.

Remember — clear agreements between brokers protect everyone involved and prevent payment disputes down the road.

If you’re ever unsure how to structure or interpret a compensation term, reach out before you submit. We’re here to help you stay compliant, confident, and ready for every deal.