Real Estate Buyer's Broker Agreement


More Info
									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
                                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

    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

    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

    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

    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

    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

    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

To top