VIEWS: 9 PAGES: 7 CATEGORY: Real Estate POSTED ON: 2/7/2014
This Real Estate Agent Agreement is between a real estate broker and a buyer that wants to use the broker’s services. In exchange for the broker’s services, the broker will receive a commission percentage of the property’s acquisition price. It is vital to get these agreements in writing to ensure that the understandings of both parties are properly set forth. This agreement is ideal for individuals or small businesses that want to provide or receive real estate broker services.
Real Estate Agent Agreement This Real Estate Agent Agreement is between a real estate broker and a buyer that wants to use the broker’s services. In exchange for the broker’s services, the broker will receive a commission percentage of the property’s acquisition price. It is vital to get these agreements in writing to ensure that the understandings of both parties are properly set forth. This agreement is ideal for individuals or small businesses that want to provide or receive real estate broker services. REAL ESTATE AGENT AGREEMENT THIS REAL ESTATE AGENT AGREEMENT (hereinafter referred to as the “Agreement”) is made and entered into as of __________________, [Instructions: Insert the date of this agreement] by and between ________________________ [Instructions: Insert the Buyer’s name] (hereinafter referred to as the “Buyer”), of _________________________________ [Instructions: Insert the Buyer’s address] and ________________________ [Instructions: Insert the Broker’s name] (hereinafter referred to as the “Broker”), of _________________________________. [Instructions: Insert the Broker’s address] WHEREAS, Buyer desires to engage a real estate broker to assist Buyer’s in acquiring certain real property; WHEREAS, Broker is a real estate broker, licensed to practice real estate in the State of __________________, [Instructions: Insert the state where Broker is licensed] with experience assisting buyers in acquiring real property; WHEREAS, Buyer desires to engage Broker to represent Buyer in acquiring real property; and subject to the terms and conditions contained herein, Broker desires to accept such engagement. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the parties as follows: 1. BROKER’S ENGAGEMENT a. Buyer hereby employs Broker and grants to Broker the exclusive and irrevocable agency right, on the terms specified herein, in acquiring real property for a period of __________ (___) [Instructions: Insert the number of months this agreement will be effective] months commencing as of the date hereof (the “Representation Period”). The parties may elect to extend the Representation Period, provided that they execute a signed writing indicating the duration of the extension. b. During the Representation Period (and/or any agreed extension), Broker agrees to exercise reasonable effort and due diligence to assist Buyer in locating and acquiring real property that meets Buyer’s requirements, namely, real property that is: i. Located in: __________ [Instructions: Insert location requirement] ii. Square Feet: __________ [Instructions: Insert desired square footage] iii. Bedrooms: __________ [Instructions: Insert desired number of rooms] iv. Bathrooms: __________ [Instructions: Insert number of bathrooms] v. Lot Size: __________ [Instructions: Insert desired lot size] © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 2 vi. Price Range: $__________ to $__________ [Instructions: Insert the desired price range] vii. Other Requirements: __________ [Instructions: Insert additional requirements] c. Buyer shall provide relevant personal and financial information to Broker to assure Buyer’s ability to acquire property described herein. Should Buyer fail to provide such information, or if Buyer does not qualify financially to acquire property described herein, then Broker may cancel this Agreement by providing Buyer with written notice of cancellation. d. Unless otherwise instructed in writing by Buyer, Broker may: (i) locate and present selected properties to Buyer, present offers authorized by Buyer, and assist Buyer in negotiating for acceptance of such offers; (ii) assist Buyer with the financing process, including obtaining loan pre-qualification; (iii) upon request, provide Buyer with a list of professionals or vendors who perform the services described in the attached Buyer’s Inspection Advisory; (iv) order reports, and schedule and attend meetings and appointments with professionals chosen by Buyer; (v) provide guidance to help Buyer with the acquisition of property; and (vi) obtain a credit report on Buyer. e. In the event that Broker locates a property that meets Buyer’s requirements, Broker shall draft and negotiate an agreement (the “Property Acquisition Agreement”) with respect to the acquisition of a specific property (“Property”). With regard to such Property, Broker shall: (i) deliver or communicate to Buyer any disclosures, materials or information received by, in the personal possession of or personally known to the individual signing for Broker below during the Representation Period; and (ii) facilitate the escrow process, including assisting Buyer in negotiating with seller. Broker’s services shall be performed in compliance with all federal, state and local anti-discrimination laws. f. Buyer agrees to consider and timely view all properties selected by Broker and to negotiate in good faith to acquire a property. Buyer further agrees to act in good faith toward the completion of any Property Acquisition Agreement entered into in furtherance of this Agreement. 2. BROKER’S COMMISSION a. Buyer agrees to pay to Broker, as compensation for services rendered hereunder, a commission of __________ percent (___%) [Instructions: Insert the Broker’s commission percentage] of the acquisition price of the Property (the “Broker’s Commission”). The parties understand that compensation and fees payable to brokers are not fixed by law and instead are negotiable between sellers and brokers. The parties hereto have negotiated the Broker’s Commission and agree that the Broker’s Commission represents a fair and bargained for compensation for Broker’s services. b. Broker shall be entitled to Broker’s Commission if: © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 3 i. During the Representation Period (and/or during any agreed extension) Buyer enters into an agreement to acquire property, on the terms described herein, or any other terms acceptable to Buyer, and the property was introduced to Buyer by Broker or was one for which Broker acted on Buyer’s behalf, regardless of whether escrow resulting from such offer closes during or after the expiration of the Representation Period. ii. Buyer enters into a contract to acquire property within __________ (___) [Instructions: Insert the number of days after the termination of the contract that Broker will receive commission if Buyer enters into a deal] days following: (1) the termination of the Representation Period (and/or during any agreed extension), or (2) the cancellation of this Agreement, provided that said property was introduced to Buyer by Broker or was one for which Broker acted on Buyer’s behalf. c. Buyer shall pay Broker Broker’s Commission upon completion of any resulting transaction. Buyer is responsible for payment of the Broker’s Commission. Notwithstanding the foregoing, if anyone other than Buyer compensates Broker for services performed hereunder, said amount shall be credited toward Buyer’s obligation to pay compensation. Buyer hereby irrevocably assigns to Broker the Broker’s Commission from Buyer’s funds and proceeds in escrow. Broker may submit this Agreement, as instructions to compensate Broker, to any escrow regarding the Property involving Buyer and a seller. d. If completion of the sale is prevented by a party other than Buyer, then the Broker’s Commission shall be payable only if and when Buyer collects damages by suit, arbitration, settlement, or otherwise, and then in an amount equal to the lesser of (i) __________ percent (___%) [Instructions: Insert the Broker’s percentage of damages] of the damages recovered (after first deducting title and escrow expenses and the expenses of collection, if any); or (ii) the Broker’s Commission amount. 3. AGENCY RELATIONSHIPS a. Depending upon the circumstances, it may be necessary or appropriate for Broker to act as an agent for both Buyer and the seller. Broker shall, as soon as practicable, disclose to Buyer any election to act as a dual agent representing both Buyer and seller. Buyer consents to Broker collecting compensation from both Buyer and seller for services rendered, provided there is disclosure to all parties of such agency and compensation. Buyer understands and agrees that: (i) Broker will not disclose to seller that Buyer is willing to pay a price greater than the offered price, without Buyer’s prior written consent; (ii) Broker, will not disclose to Buyer that seller is willing to sell the Property at a price less than the listing price without Buyer’s prior written consent; (ii) and (iii) except as otherwise provided herein, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties. b. Buyer understands that Broker may represent other potential buyers, and on behalf of such buyers may consider, make offers on or acquire the same or similar properties as those Buyer is seeking to acquire. Buyer consents to Broker’s representation of such other potential buyers before, during and after the Representation Period (and/or any agreed extension). © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 4 4. REPRESENTATIONS, WARRANTIES, INDEMNIFICATION a. Buyer represents and warrants that: i. Buyer has not previously entered into a real estate agent agreement with another broker regarding the Property; ii. Buyer has no obligation to pay compensation to any other broker regarding the Property; b. Buyer agrees to indemnify, defend and hold Broker harmless from all claims, disputes, litigation, judgments and attorney fees arising from (i) Buyer’s breach, in whole or in part of the representations or warranties made by Buyer in this Agreement; (ii) any incorrect information supplied by Buyer; and/or (iii) from any material issues that Buyer knows but fails to disclose. 5. EXCLUDED DUTIES Buyer acknowledges and agrees that Broker: (i) does not decide what price Buyer should pay or Seller should accept; (ii)does not guarantee the condition of the Property; (iii) does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) does not have an obligation to conduct an inspection of common areas, or offsite areas of the Property; (v) shall not be responsible for identifying defects on the Property, in common areas or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker; (vi) shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service (“MLS”), advertisements, flyers or other promotional material; (ix) shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (x) shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer agrees to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. 6. MISCELLANEOUS a. This Agreement constitutes the entire agreement between the parties hereto with respect to the specific subject matter hereof and supersedes all prior agreements or understandings of any kind with respect to the specific subject matter hereof. b. In the event that any provision or part of this Agreement shall be deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect. © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 5 c. Any and all additions, deletions, or modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void. d. This Agreement is binding upon and shall inure to the benefit of the respective successors, licensees and/or assigns of the parties hereto. Notwithstanding the foregoing, neither party may assign or transfer its rights or delegate its obligations under this Agreement without the other party's prior written consent, which consent will not be unreasonably withheld. e. This Agreement shall be governed in accordance with the laws of the State of _______________________ [Instructions: Insert the state’s laws that will govern this agreement] applicable to agreements to be wholly performed therein, without giving effect to its laws governing conflict of laws. IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date first written above. BUYER BROKER __________ [Instructions: Insert Name] __________ [Instructions: Insert Name] __________________________ __________________________ By: Authorized Signatory By: Authorized Signatory © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 6
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