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.
2. 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.
3. 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: Lawrence homes
Approximate Price Range: $80,000 to 160,000
Preferred Term: see above
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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 reason-
able 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,
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 im-
mediately 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
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: BUYER or Lessee:
Michael Scott Hedges Realty, Inc.
604 Prescott Drive, Suite 201
Lawrence, KS 66049 _________________________________