BUYER AGENCY AGREEMENT 1. THIS AGREEMENT is made between __________________ described throughout this Contract as the “Buyer” (or Lessee) and MichaelScott (MS) Hedges Realty, Inc., “Broker” described hereafter as “Agent” is made on March 29, 2002. By this Contract, the Buyer or Lessee retains and appoints the Agent as Buyer’s Exclusive Agent/Team to assist Buyer/Lessee in the procurement of property and to negotiate terms and conditions acceptable for the procurement of certain property as generally described in this Contract. TERM OF AGREEMENT: This Contract shall begin ________ 2002, and continue until midnight ____________ 2002, unless sooner terminated by written notice given by one party to the other. In the event of such termination, the compensation due to Agent shall be subject to the provisions of Paragraph 13 of this Contract. GENERAL DESCRIPTION OF THE PROPERTY: Buyer desires to purchase (lease) real property, which may include certain items of personal property, described as follows: Type: (X ) Residential ( ) Income / Multi-family ( ) Vacant Land ( ) Commercial GENERAL LOCATION: Approximate Price Range: Preferred Term: 4. Lawrence homes $80,000 to 160,000 see above
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AGENCY RELATIONSHIP: Tenant / Buyer acknowledges receiving and signing the “Disclosure of Alternative Agency Relationships” brochure. Agent is duly licensed under the laws of the State of Kansas as a Real Estate Agent/Broker and agrees to use Agent’s best efforts as Buyer’s Agent to locate property as described in Paragraph 3 and to negotiate terms and conditions for the procurement of said property. Buyer understands that Sellers / Lessors of real estate also select an Agent to serve as Seller’s Agent in the listing of property (“Company Listing”) for sale or lease., and said Agent represents Seller interests in sale/lease transactions. DISCLOSURE OF AGENT’S ROLE: At the time of initial contact, Agent shall inform all prospective Sellers / Lessors and their agents, with whom Agent negotiates pursuant to this Agreement, that acts on Behalf of a Buyer / Tenant. Buyer authorizes Agent to cooperate with other agents and share compensation due under this agreement. BUYER’S IDENTITY: Unless otherwise expressly requested in writing, Agent has Buyer’s permission to disclose Buyer’s identity to prospective Sellers and their Agents. PERSONAL AND FINANCIAL INFORMATION: Buyer agrees to provide Agent, upon request with relevant personal and financial information to assure Buyer’s ability to acquire property of the character and quality described above. OTHER POTENTIAL BUYERS: Buyer understands that other potential Buyers may consider, making offers on, or purchase (or lease) through Agent the same of similar properties as Buyer seeks to acquire. Buyer consents to Agent’s representation of such potential Buyers before, during and after the expiration of the Agreement unless otherwise stated. In such situation, Agent will not disclose to either Buyer the terms of the other’s offer.
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NONASSIGNMENT OF CONTRACT: Buyer / Lessee and Agent understand and agree that the relationship created by the Agreement is a personal one and that neither the Buyer / Lessee nor the Agent shall have the right to assign this Agency Agreement to third parties.
10. BROKER’S OBLIGATIONS: Agent agrees to perform the terms of this Agreement, exercise reasonable skill and care for the Buyer / Lessee, promote the interest of the Buyer / Lessee with the utmost good faith, loyalty and fidelity, seek a price and terms acceptable to the Buyer / Lessee and present all written offers, counteroffers and back-up offers in a timely manner. The Buyer agrees that: (please initial appropriate paragraph below): (_X ) Agent shall not be obligated to seek other property, or present them to Buyer/Lessor, after Buyer/Lessor has entered into a contract to purchase or lease. (_ ) Agent SHALL BE obligated to seek other property, or present them to Buyer/Lessor, after Buyer/Lessor has entered into a contract to purchase (or lease), unless the purchase contract permits Buyer/Lessor to continue to seek other property, and purchase (lease) it instead of the subject property, until closing. 11. COST OF SERVICES OBTAINED FROM OUTSIDE SOURCES: Agent shall not obtain or order products or services from outside sources unless Buyer agrees in writing to pay for the same immediately when payment is due. Examples of such products and services would include, but are not limited to surveys, mechanical inspections, title reports, demographic reports and engineering studies. 12. COMPENSATION PROVISION: Compensation of Broker: As compensation of Broker’s services, the Buyer agrees to pay the Broker as follows: A. On Listed Property with Commission Splits: Commissions are paid from the proceeds of the sale / seller side of HUD 1 closing statement: Listing Agreement generally will direct payment of Broker’s commission. Broker, when the listing company, will split commissions with the cooperative brokerage company, because it is Broker’s general policy to reciprocate compensation and cooperation with other brokers. B. On other Property: In the event that the owner of any property with whom Buyer/Lessee enters into an enforceable Purchase and Sale Agreement or Commercial Lease Agreement does not agree to pay Broker’s real estate commission, (or if the listing broker does not split commissions), then Buyer may offer to pay a flat fee. C. (e.g., A “For Sale By Owner” property may fall into this category.) Broker shall credit against said commission any commission payments received by Broker from the property seller. Buyer/Lessee shall pay Broker the commission as stated above in paragraph B. D. Protection Period. In the event that during the period of three months following termination of this Agreement, then Buyer shall pay Broker the commission as stated above in paragraph B. 13. CONSENT TO SHOW PROPERTIES TO OTHER BUYER’S or (Lessee’s): Other Buyers/Lessees: Potential buyers/lessees may be interested in the same properties as buyer/lessee, whether such representation arises prior to, during, or after the end of this contract. In such a situation, Appointed Broker/Agent will not disclose to either Buyer/Lessee the terms of the other’s offer.
14. ENTIRE AGREEMENT: This Agency Contract constitutes the entire agreement between the parties; any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Contract. There shall be no modification of any of the terms of this Agency Contract unless such modification has been agreed to in writing and signed by both parties. CAREFULLY READ AND INITIAL THE TERMS ON EACH PAGE HEREOF BEFORE SIGNING. WHEN SIGNED BY ALL PARTIES, THIS IS A LEGALLY BINDING CONTRACT. IF NOT UNDERSTOOD, CONSULT AN ATTORNEY BEFORE SIGNING. This Contract made on the aforementioned date: Buyer hereby certifies that he/she has received a copy of this Contract AGENCY: ______________________________ Michael Scott Hedges Realty, Inc. 604 Prescott Drive, Suite 201 Lawrence, KS 66049 (785) 865-1616 865-1320 (785) 226-2832 BUYER or Lessee:
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