This is an agreement between a potential buyer of property and a broker that is hired to help facilitate the process. Brokers are a valuable asset that help buyers vet specific pieces of property, negotiate the price, help broker a deal, and much more. Customize the broker’s fees, the broker’s responsibilities, the buyer’s conditions, and much more. This agreement can be used by small businesses or individuals that want to enter into a broker agreement to help procure a piece of property.
Buyer Agency Agreement This is an agreement between a potential buyer of property and a broker that is hired to help facilitate the process. Brokers are a valuable asset that help buyers vet specific pieces of property, negotiate the price, help broker a deal, and much more. Customize the broker’s fees, the broker’s responsibilities, the buyer’s conditions, and much more. This agreement can be used by small businesses or individuals that want to enter into a broker agreement to help procure a piece of property. BUYER AGENCY AGREEMENT THIS BUYER AGENCY AGREEMENT (hereinafter referred to as the “Agreement”), entered into as of this __________ day of __________, _____ [Instructions: Insert the date of this agreement] by and between __________________________ [Instructions: Insert the name of the Buyer] with an address of _____________________________________ [Instructions: Insert the address of the Buyer] (hereinafter referred to as the “Buyer”) and ______________________________ [Instructions: Insert the name of the Broker] with an address of _____________________________________ [Instructions: Insert the address of the Broker] (hereinafter referred to as the “Broker”)., sets forth the terms of agreement between Buyer and Broker with respect to Broker’s representation of Buyer as set forth herein. 1. BROKER’S ENGAGEMENT This Agreement grants Broker the exclusive and irrevocable right (except as otherwise set forth herein) to represent Buyer in acquiring real property or a manufactured home from __________ day of __________, _____ [Instructions: Insert the start date of the representation] to __________ day of __________, _____ [Instructions: Insert the end date of the representation] or the completion of a resulting transaction, whichever occurs first (the “Representation Period”). Broker agrees to exercise due diligence and reasonable efforts on Buyer’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. COMPLIANCE WITH LAWS Broker will comply at all times with all applicable law, including but not limited to those regarding disclosures. 3. BUYER’S REPRESENTATION Broker will represent Buyer in any resulting transaction as described in this Agreement. 4. BUYER’S ACKNOWLEDGMENTS Buyer 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 Buyer and a seller or other additional party. Broker shall, as soon as practicable, disclose to Buyer any election to act as a dual agent representing both Buyer and a seller. If Buyer is shown property listed by Broker, Buyer shall be deemed to consent to Broker becoming a dual agent representing both Buyer and seller with respect to those properties, without the need for Broker to make any further disclosure. Buyer hereby waives any such additional disclosure requirements with respect to any such property. In the event of dual agency, Buyer agrees that Broker, without the prior written consent of Buyer will not disclose to any such seller that the Buyer is willing to pay a price greater than the price offered. Further, Broker, without the prior written consent of any such © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 2 seller, shall not disclose to Buyer 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. 5. CONSENT TO CONFLICTING REPRESENTATION Buyer 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 Buyer is seeking to acquire. Buyer consents to Broker’s representation of such other potential buyers before, during and after the Representation Period, or any extension thereof. 6. CONFIDENTIAL INFORMATION Buyer is advised that a seller or any listing agent may disclose the existence, terms or conditions of Buyer’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. CONFIRMATION OF AGENCY RELATIONSHIP If required by law, Broker shall confirm the agency relationship described above, or as modified, in writing, prior to or simultaneously with Buyer’s execution of a sales contract. 8. RETAINER FEE Upon execution of this Agreement, Buyer shall pay to Broker a non-refundable retainer fee of $__________ [Instructions: Insert the Broker’s retainer fee amount] for Broker’s services. This fee is not refundable and shall be credited toward any compensation due Broker under this Agreement. 9. COMMISSION Buyer agrees to pay Broker a commission of _____% [Instructions: Insert the commission percentage Broker will receive] of the purchase price of any property acquired under this Agreement. Broker shall be entitled to the compensation agreed to pursuant to the following circumstances: ________________________________________________________________. [Instructions: Insert when the Broker will be entitled to receive commission, e.g. when escrow closes, when an offer is made, etc.] Buyer shall be solely responsible for the payment of Broker’s fees as set forth herein. Buyer, for purposes of this paragraph, shall include any person or entity related to Buyer or who in any manner acts on Buyer’s behalf to acquire the property described herein. 10. OTHER REPRESENTATIONS © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 3 Buyer has not entered into any other representation agreement with any other broker regarding the property described herein, except as follows: _________________________________. [Instructions: Insert the details of any other broker the Buyer has hired] Buyer warrants that Buyer has no obligation to pay compensation to any other broker regarding property described herein except as follows: ______________________________________. [Instructions: Insert when and how the other brokers that Buyer has hired will get paid] If Buyer purchases a property specified above during the time in which Buyer is obligated to pay another broker, Buyer shall not be required to compensate Broker, nor is Broker obligated to represent Buyer in said transaction. [Instructions: If Buyer has not hired any other brokers, delete the provision above] 11. VIRTUAL TOURS Buyer 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 control over how long the information concerning the properties will be available on the Internet. 12. BUYER’S AUTHORIZATIONS Buyer authorizes Broker to locate and present selected properties to Buyer; present authorized Buyer offers; and assist Buyer in negotiating for acceptance of such offers. Broker is also authorized to assist Buyer with the financing process, including obtaining loan pre-qualification, and upon request, to provide Buyer with a list of professionals or vendors performing services as requested, order reports and schedule and attend meetings and appointments with Buyer’s chosen professionals, and provide Buyer guidance with the property acquisition and obtain Buyer’s credit report. 13. PROPERTY INSPECTION For property transactions of which Broker is aware and not precluded from participating in by Buyer, 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 Buyer 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. ADDITIONAL INSPECTIONS Buyer understands, acknowledges and agrees that Buyer should select additional professionals to inspect the property through inspections, tests, surveys, reports, studies and other available © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 4 information throughout the transaction. Buyer 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. PURCHASE PRICE Buyer understands, acknowledges and agrees that Broker does not decide the price Buyer 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, Buyer understands, acknowledges and agrees that Broker has no duty to inspect for environmental hazards, earthquake weaknesses or other geologic or seismic hazards. 16. BUYER’S DUTIES Buyer 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. Buyer will provide Broker within ____ [Instructions: Insert the number of days Buyer has to provide Broker with the relevant information] business days of this Agreement with the relevant personal and financial information to assure Buyer’s ability to acquire the property described herein. If Buyer fails to provide such information or does not qualify to purchase such property, Broker may cancel this Agreement. 17. MATERIAL ISSUES Buyer shall notify Broker in writing of any material issues to Buyer. 18. DISPUTE RESOLUTION Any dispute between Buyer and Broker shall be mediated. If a settlement is not reached in mediation, the matter shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association or other mutually agreeable arbitrator. 19. NOTICES 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 in the first paragraph of this © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 5 Agreement or to such other addresses as either party may notify the other by notice given pursuant to this paragraph. 20. GOVERNING LAW This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of _________________________. [Instructions: Insert the state’s laws that will govern this agreement] 21. ENTIRE AGREEMENT 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. SEVERABILITY 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. COUNTERPARTS 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. 24. BUYER’S ACKNOWLEDGEMENT Buyer acknowledges that Buyer has read, understands and has received a copy of and agrees to the terms set forth in this Agreement. IN WITNESS WHEREOF, Buyer and Broker have hereby executed this Agreement as of the date first above written. BUYER _________________________ © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 6 BROKER _________________________ © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 7
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