Dear future client,
Please read the following buyer-brokerage agreement. We only work with a client when we have a signed buyer-brokerage agreement so that we can fully represent YOUR best interests. According to current real estate normal practice if we are not working for you, then we are by default working for the seller. As your buyer broker we will be able to provide you excellent advice on the market, assist you in structuring the transaction to assure that you are fully protected, and we will try to negotiate hard to get you the best possible price.
We believe it is important for any new home buyer to know that in Virginia or Maryland we have a centralized multiple listing system. All available homes are in our computer database so you do not need to go to a multitude of real estate agencies to find all the available homes.
Note, if you choose to discontinue our service for any reason, you can always cancel this agreement with a 24 hour notice. We do not want to put any presure on our client, because we want a trusted and satisfied client. We want to build our business on total satisfaction from you.
If you have any questions about this brokerage relationship, please let us know.
This agreement is made on ________________, 20 __ between ______________________________ ("Buyer") and HomeState Realty ("Broker").
In consideration of the services and facilities, the Broker is hereby granted the right to represent the Buyer in the acquisition of real property. (As used in this Agreement, "acquisition of real property" shall include any purchase, option, exchange or lease or an agreement to do so.)
1. BUYER'S REPRESENTATIONS. The buyer represents that as of the commencement date of this agreement, the Buyer is not a party to a buyer representation agreement with any other brokerage firm. The Buyer further represents that the Buyer has disclosed to the Sales Associate information about any properties that the Buyer has previously visited at any new homes communities or resale "open houses", or that the Buyer has been shown by any other real estate sales associate(s) in any area where the Buyer seeks to acquire property under this agreement.
The buyer does or does not hold an active or inactive Virginia real estate license.
2. TERM. This Agreement commences when signed and, subject to Paragraph 7, terminates at _______a.m./p.m. on _____________, 20 __.
3. RETAINER FEE. The Broker, HomeState Realty, acknowledges receipt of a retainer fee in the amount of $1 which shall be subtracted from any compensation due the Broker under this Agreement. The retainer is non-refundable and is earned when paid.
4. BROKER'S DUTIES. The Broker and the Sales Associate shall promote the interests of the Buyer by: (a) performing the terms of this Agreement; (b) seeking property at a price and terms acceptable to the Buyer ; (c) presenting in a timely manner all written offers or counteroffers to and from the Buyer; (d) disclosing to the Buyer all material facts related to the property or concerning the transaction of which they have actual knowledge; (e) accounting for in a timely manner all money and property received in which the Buyer has or may have an interest. Unless otherwise provided by law or the Buyer consents in writing to the release of this information, the Broker shall maintain the confidentiality of all personal and financial information and other matters identified as confidential by the Buyer, if that information is received from the Buyer during the brokerage relationship. In satisfying these duties, The Broker shall exercise ordinary care, comply with all applicable laws and regulations, treat all prospective sellers honestly and not knowingly give false information, and disclose whether or not the Buyer's intent is to occupy the property as a principal residence. In addition, the Broker may show the same property to other buyers, represent other buyers, represent sellers relative to other properties, or provide assistance to a seller or prospective seller by performing ministerial acts that are not inconsistent with the Broker's duties under this Agreement.
5. BUYER'S DUTIES. The Buyer shall: (a) work exclusively with the Broker during the term of this Agreement; (b)pay the Broker, directly or indirectly, the compensation set forth below; (c) comply with the reasonable requests of the Broker to supply any pertinent financial or personal data needed to fulfill the terms of this Agreement; (d) be available during the Broker's regular working hours to view properties.
6. PURPOSE. The Buyer is retaining the Broker to acquire the following type of property: ____________________________________________________________________________
7. COMPENSATION. In consideration of the time and effort expended by the Broker on behalf of the Buyer, and in further consideration of the advice and counsel provided to the Buyer, the Buyer shall pay compensation ("Broker's Fee") to the Broker as described below. The Broker's Fee, less the retainer fee, if any, shall be earned, due and payable under any of these circumstances whether the transaction is consummated through the services of the Broker or otherwise:
(a) If the Buyer enters into a contract to acquire real property during the term of this Agreement and goes to settlement on that contract any time thereafter: OR
(b) If, within 60 days of expiration of this Agreement, the Buyer enters into a contract to acquire real property that has been described to or shown to the Buyer by the Broker during the term of this Agreement, even if the Buyer has entered into a subsequent "Exclusive Right to Represent Buyer" agreement with another real estate broker; OR
(c) If, having entered into a enforceable contract to acquire real property during the term of this Agreement, the Buyer defaults under the terms of that contract.
The Broker's Fee shall be 3% plus any bonus provided by the seller. If the seller or the seller's representative offers compensation to the Buyer Broker, then the Buyer authorizes the Broker to receive such compensation and the amount of such compensation shall be credited against the Buyer's obligation to pay the Broker's Fee.
Any obligation incurred under this Agreement on the part of the Buyer to pay the Broker's Fee shall survive the term of this Agreement.
8. DISCLOSED DUAL REPRESENTATION. The Buyer acknowledges that in the normal course of business the Broker may represent sellers of properties in which the Buyer is interested. If the Buyer wishes to acquire any property listed with the Broker, then the Buyer will be represented in one of two ways that are permitted under Virginia law in this situation. The written consent required from the parties in each case will be accomplished via the execution of the appropriate disclosure form at the time of the contract offer.
Dual representation occurs when a buyer and seller in one transaction are represented by the same Broker and the same Sales Associate. When the parties agree to dual representation, the ability of the Broker and the Sales Associate to represent either party fully and exclusively is limited. The confidentiality of all clients shall be maintained as in paragraph 4 above.
Designated representation occurs when a buyer and seller in one transaction are represented by different Sales Associates affiliated with the same Broker. Each of these Sales Associates, known as a Designated Representative, represents fully the interests of a different client in the same transaction. Designated Representatives are not dual representatives if each represents only the buyer or only the seller in a specific real estate transaction. Except for disclosure of confidential information to the Broker, each Designated Representative is bound by the confidentiality requirements in paragraph 4 above. The Broker remains a dual representative.
CHECK ONE CHOICE IN EACH SECTION:
Dual representation: The Buyer does OR does not consent to be shown and to consider acquiring properties listed with the Broker through the Sales Associate.
Designated representation: The Buyer does OR does not consent to be shown and to consider acquiring properties listed with the Broker through another Designated Representative associated with the firm.
9. DISCLAIMER. The Buyer acknowledges that the Broker is being retained solely as a real estate agent and is not an attorney, tax advisor, lender, appraiser, surveyor, structural engineer, home inspector or other professional service provider. The Buyer is advised to seek professional advice concerning the condition of the property or concerning legal and tax matters.
10. EQUAL OPPORTUNITY. Properties shall be shown and made available to the Buyer without regard to race, color, religion, sex, handicap, familial status or national origin as well as all classes protected by the laws of the United States, the Commonwealth of Virginia and applicable local jurisdictions.
11. OTHER PROVISIONS. The purchaser may canel this agreement with a 24 hour written notice.
12. MISCELLANEOUS. This Agreement, any exhibits and any addenda signed by the parties constitute the entire agreement between the parties and supersede any other written or oral agreements between the parties. This Agreement can only be modified in writing when signed by both parties. In any action or proceeding involving a dispute between the Buyer, the seller and/or the Broker, arising out of the Agreement, or to collect the Broker's Fee, the prevailing party shall be entitled to receive from the other party reasonable attorney's fees to be determined by the court or arbitrator(s).
(NOTE: The Buyer should consult with the Sales Associate before visiting any resale or new home or contacting any other REALTORS representing sellers, to avoid the possibility of confusion over the brokerage relationship and misunderstandings about liability for compensation.)
Address line 1
Address Line 2
City, State, Zip Code
Broker/Sales Manager's Signature
Telephone: Work Home