An agreement (such as a listing or sales agreement) which establishes or increases the amount or rate of a real estate broker’s/agent’s compensation for the sale of residential real property of not more than four units or a mobilehome must contain the followingdisclosure in not less than 10-point boldface type:

Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.

This notice must be physically placed before the provision in the agreement forcompensation of the broker(s)/agent(s), and the amount or rate of compensation cannot be preprinted. Further, any compensation to be received by the broker from the transaction must be fully disclosed.

(CAL. BUS. & PROF. §§ 10147.5, 10176(g))