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This is an agreement between a broker and a potential buyer in a real estate transaction. This agreement contains optional language that can be modified by the parties to determine whether this will be an exclusive or nonexclusive broker agreement. In addition, this agreement provides for the commencement and conclusion date of the agreement between the parties. This agreement should be used by individuals or entities that want to enlist a broker and are interested in potentially purchasing real estate.
This is an agreement between a broker and a potential buyer in a real estate transaction. This agreement contains optional language that can be modified by the parties to determine whether this will be an exclusive or nonexclusive broker agreement. In addition, this agreement provides for the commencement and conclusion date of the agreement between the parties. This agreement should be used by individuals or entities that want to enlist a broker and are interested in potentially purchasing real estate. Real Estate Buyer’s Broker Agreement This agreement, entered into as of this __ day of ___, 20__ [Instruction: Insert date.] by and between _____ [Instruction: Insert purchaser name.] as purchaser (“Purchaser”) and _____ of _____ [Instruction: Insert applicable broker information including company and address.] as broker (“Broker”) sets forth the terms of agreement between Purchaser and Broker with respect to Broker’s representation of Purchaser as set forth herein. 1. This Agreement grants Broker the non-exclusive/exclusive [Instruction: Delete inapplicable.] and irrevocable right (except as otherwise set forth herein) to represent Buyer in acquiring real property or a manufactured home from _____ to 11:59 p.m. on ______ [Instruction: Insert applicable commencement and termination date.] or the completion of a resulting transaction, whichever occurs first (the “Representation Period”). Broker agrees to exercise due diligence and reasonable efforts on Purchaser’s behalf to fulfill the following authorizations and obligations. Broker will perform its obligations under this Agreement through the individual signing on Broker’s behalf below, who is either Broker individually or an associate-licensee. Broker agrees that Broker’s duties are limited by the terms of this Agreement and applicable law. 2. Broker will comply at all times with all applicable law, including but not limited to those regarding disclosures. 3. Broker will represent Buyer in any resulting transaction as described in this Agreement. 4. Purchaser hereby understands, acknowledges and agrees that depending on the circumstances, it may be necessary or appropriate for Broker to act as an agent for both Purchaser and a seller or other additional party. Broker shall, as soon as practicable, disclose to Purchaser any election to act as a dual agent representing both Purchaser and a seller. If Purchaser is shown property listed by Broker, Purchaser shall be deemed to consent to Broker becoming a dual agent representing both Purchaser and seller with respect to those properties, without the need for Broker to make any further disclosure. Purchaser hereby waives any such additional disclosure requirements with respect to any such property(ies). In the event of dual agency, Purchaser agrees that Broker, without the prior written consent of Purchaser will not disclose to any such seller that the Purchaser is willing to pay a price greater than the price offered. Further, Broker, without the prior written consent of any such seller, shall not disclose to Purchaser that such seller is willing to sell property at a price less than the listing price. Other than as set forth in this paragraph, a dual agent is obligated to disclose those known facts materially affecting the value or desirability of the property to both parties, and as otherwise required by applicable law. [Comment: If the agreement will be single agency only, or if broker’s firm does not list property, revise the above to reflect same.] © Copyright 2012 Docstoc Inc. 2 5. Purchaser hereby understands, acknowledges and specifically agrees that other potential buyers may, through Broker, consider, make offers on or acquire the same or similar properties as that Purchaser is seeking to acquire. Purchaser consents to Broker’s representation of such other potential buyers before, during and after the Representation Period, or any extension thereof. 6. Purchaser is advised that seller or any listing agent may disclose the existence, terms or conditions of Purchaser’s offer unless other parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent’s marketing strategy and the instructions of any seller. 7. If required by law, Broker shall confirm the agency relationship described above, or as modified, in writing, prior to or simultaneously with Purchaser’s execution of a sales contract. 8. Purchaser agrees to pay Broker _____ [Instruction: Insert applicable fee schedule.]. Broker shall be entitled to the compensation agreed to pursuant to the following circumstances: _____ [Instruction: Insert when fee is payable and upon what conditions.]. Purchaser shall be solely responsible for the payment of Broker’s fees as set forth herein. Purchaser, for purposes of this paragraph, shall include any person or entity related to Purchaser or who in any manner acts on Purchaser’s behalf to acquire the property described herein. 9. Purchaser has not entered into any other representation agreement with any other broker regarding the property described herein, except as follows: ______ [Instruction: Insert alternate broker name, if any. If none, write N/A.]. Purchaser warrants that Purchaser has no obligation to pay compensation to any other broker regarding property described herein except as follows: _____ [Instruction: Insert other properties for which Purchaser may owe a commission.]. If Purchaser purchases a property specified above during the time in which Purchaser is obligated to pay another broker, Purchaser shall not be required to compensate Broker, nor is Broker obligated to represent Purchaser in said transaction. 10. Any purchase, lease or other acquisition of any real property or manufactured home described as follows: _____________ [Instruction: Insert potential properties.] shall entitle Broker to the compensation described herein. 11. Purchaser acknowledges and agrees that properties presented to them may have been marketed through a virtual tour on the Internet, permitting potential buyers to view properties over the Internet, that neither provider nor Broker has control over who will obtain access to the service or what action such persons might take and Broker has no © Copyright 2012 Docstoc Inc. 3 control over how long the information concerning the properties will be available on the Internet. 12. Purchaser authorizes Broker to locate and present selected properties to Purchaser; present authorized Purchaser offers; and assist Purchaser in negotiating for acceptance of such offers. Broker is also authorized to assist Purchaser with the financing process, including obtaining loan pre-qualification, and upon request, to provide Purchaser with a list of professionals or vendors performing services as requested, order reports and schedule and attend meetings and appointments with Purchaser’s chosen professionals, and provide Purchaser guidance with the property acquisition and obtain Purchaser’s credit report. 13. For property transactions of which Broker is aware and not precluded from participating in by Purchaser, Broker shall provide and review forms to create a property contract for the acquisition of a specified property. With respect to such specified property, Broker shall make a reasonably competent visual on-site inspection of the accessible areas of the property and disclose to Purchaser all facts materially affecting the value or desirability of such property revealed by this inspection, all disclosures material or information received by, in the personal possession of or personally known to broker during the Representation Period or otherwise required by applicable law. Broker will not be required to make any independent verification of any such information, unless otherwise agreed to or required by applicable law. 14. Purchaser understands, acknowledges and agrees that Purchaser should select additional professionals to inspect the property through inspections, tests, surveys, reports, studies and other available information throughout the transaction. Purchaser understands, acknowledges and agrees such inspections, tests, surveys, reports, studies and other available information are outside the scope of Broker’s expertise and duties as described herein. 15. Purchaser understands, acknowledges and agrees that Broker does not decide the price Purchaser should pay or seller should accept; and that Broker makes no guarantees regarding the property condition, performance, adequacy or completeness of inspections, services, products or repairs provided by seller or others; does not have any obligation to conduct any inspection of the property except as set forth herein; shall not be responsible for identifying defects on the property, except as otherwise set forth herein; shall not be responsible for inspecting public records, permits, boundary lines, verifying square footage or other information contained in any other material concerning the title or use of the property; shall not be responsible for providing legal or tax advice or other advice or information exceeding the knowledge, education and experience required to perform real estate licensed activity. Further, Purchaser understands, acknowledges and agrees that © Copyright 2012 Docstoc Inc. 4 Broker has no duty to inspect for environmental hazards, earthquake weaknesses or other geologic or seismic hazards. 16. Purchaser agrees to timely vie and consider properties selected by Broker and to negotiate in good faith to acquire a property and to act in good faith toward the completion of a property contract. Purchaser will provide Broker within 5 business days of this Agreement with the relevant personal and financial information to assure Purchaser’s ability to acquire the property described herein. If Purchaser fails to provide such information or does not qualify to purchase such property, Broker may cancel this agreement. 17. Purchaser shall notify Broker in writing of any material issues to Purchaser. 18. Optional language: Parties may wish to provide for alternative dispute resolution procedures. 19. Any notices sent or required to be sent pursuant to this Agreement shall be in writing and be deemed to be duly served if mailed, postage prepaid, certified mail, return receipt requested, or delivered by Federal Express or other comparable overnight carrier, or delivered in hand by a duly appointed constable, to the addresses of the parties stated below or to such other addresses as either party may notify the other by notice given pursuant to this paragraph: ______ [Instruction: Insert Broker and Purchaser’s respective addresses.]. 20. This agreement shall be construed, interpreted and enforced in accordance with the laws of the State of _____ [Instruction: Insert state.]. 21. This agreement constitutes the entire agreement of the parties with respect to its subject matter, and may not be changed orally, but only by an agreement in writing signed by the party against whom the enforcement of any waiver, change, modification, extension or discharge is sought. 22. In the event that any portion of this agreement shall be deemed null and void or unenforceable by any court of competent jurisdiction, then notwithstanding the same, the remaining provisions of this agreement shall be full force and effect. 23. This agreement or any subsequent amendment or modification hereto may be executed by facsimile and/or in one or more counterparts, each of which when so executed and delivered shall be deemed an original, but all of which taken together shall constitute but one and the same original. Each party shall accept any such signed faxed counterpart as full execution of this agreement or any subsequent amendment or modification thereto. Purchaser acknowledges that Purchaser has read, understands and has received a copy of and agrees to the terms set forth in this Agreement. © Copyright 2012 Docstoc Inc. 5 IN WITNESS WHEREOF, the undersigned have executed this agreement under seals of the date and year first written above. _______________ ___________________ Purchaser Broker © Copyright 2012 Docstoc Inc. 6
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