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EXCLUSIVE RIGHT TO REPRESENT AGREEMENT
Name:__________________________________________________(Buyer) hereby retains Grand Lux Realty, Inc. (Broker) represented by__________________________________________________, (Licensed Salesperson) to assist Buyer in locating and/or negotiating for the purchase of real property, a general description of which is provided below. The terms and conditions of this Agreement are as follows:
AGREEMENT PERIOD
1. This Agreement begins upon signing and ends on_________________________, or upon the closing of a property purchased in accordance with this Agreement. In a case of extreme duress for either party, this Agreement can be cancelled, in writing, on_________________________.
BROKER'S OBLIGATIONS
2. Broker agrees to:
[a] Use diligence in locating a property on price and terms acceptable to Buyer;
[b] Use professional knowledge and skills to negotiate for Buyer's purchase of the property;
[c] Assist Buyer throughout the transaction and act in Buyer's best interests at all times;
[d] Present purchase offers to the seller or to seller's agent if a written authorization granting exclusive authority exists;
[e] Assist Buyer in obtaining financing and in researching financing alternatives.
BUYER'S OBLIGATIONS
3. During the term of this Agreement, Buyer agrees:
[a] To provide to Broker upon request:
[i] the general nature, location, requirements and preferred terms and conditions, which Buyer is seeking in connection with the acquisition of desired property; and
[ii] relevant personal and financial information to assure Buyer's ability to obtain financing;
[iii] Buyer agrees to work exclusively with Broker and not with other real estate brokers, salespersons or owners, with respect to viewing properties and agrees to refer to Broker all inquiries in any form from any other real estate broker, salesperson, prospective seller or any other source; and
[iv] conduct in good faith all negotiations for property, exclusively through Broker.
[b] To compensate Broker if Buyer or any other person acting on Buyer's behalf buys or exchanges for property.
[c] The compensation shall be as follows, which sum shall become due and payable when Buyer closes on the subject property.
If the property is listed with a real estate company or licensee, Broker will accept a fee equal to the fee being offered to cooperating agents, but in no event less than the amount set forth below. If such fee, or any portion thereof, is paid by the Seller or the Seller's agent as a convenience of the transaction, Buyer will be credited by Broker for the amount so paid. The commission, as outlined below, shall be Broker’s only payment for services rendered according to this Agreement. Any additional monies that Seller or Listing Broker were offering to Buyer’s Broker shall be credited back to Seller on behalf of Buyer as a deduction of Buyer’s purchase monies needed to close.
Task List:
1. Work with Buyer to create a new model for pricing Buyer Agency efforts on an a-la-carte basis.
2. Write an Exclusive Right To Represent Agreement which outlines the financial relationship of the parties involved.
3. Find, analyze, and explore neighborhoods and school districts which will match Buyer’s needs.
4. Search for and show homes that match Buyer’s search criteria.
5. Analyze value and negotiate on houses that Buyer is interested in.
6. Create Memorandum of Sale.
7. Help Buyer with inspections.
8. Help Buyer sign contracts.
9. Manage process between contract and closing.
Broker will earn a commission according to the following criteria:
1. Broker’s earned commission shall be no less than 25% of the offered commission and no more than 75% of the offered commission.
2. Exclusive Right To Represent minimum cost: $5,000.
3. $1,500/day for looking at houses or exploring neighborhoods.
4. $1,500/house for negotiating (includes preparing a Comparative Market Value Analysis).
5. $500 for preparing a Memorandum of Sale & distributing it to the parties.
6. $1,500 for managing the process between contract and closing.
7. 100% of the cost of any inspections or purchased materials to help analyze the decision of whether to purchase subject property.
8. If Buyer thinks Broker has done a fantastic job, Buyer has the right to increase Broker’s commission by up to 50%.
[d] Buyer acknowledges that if within one (1) month of the termination of this Agreement, with or without the services of a licensed agent, Buyer buys or exchanges for real property shown to Buyer by Broker during the term of this Agreement, compensation as set forth in this Agreement shall be applicable and Buyer shall pay such fee to Broker, provided however, that if during such protection period a valid Exclusive Right To Represent Agreement is entered into with another real estate broker, any payments made thereunder for said transaction may be credited against the sums otherwise due and owing pursuant to this Agreement.
ADVICE ON TECHNICAL MATTERS
4. Broker will not counsel Buyer on legal matters, home inspections, public health, surveying, tax, financial, or other technical matters which are outside of the scope of the Broker's expertise. Broker has recommended to Buyer that Buyer seek the advice and counsel of qualified experts in connection with the physical condition of the property, its state of repair, water, termite, radon, lead and similar tests and as to legal matters with respect to the property. Buyer hereby acknowledges that it is Buyer's sole responsibility for obtaining such services and for retaining any experts which Buyer chooses to obtain.
FAIR HOUSING
5. Broker is committed to compliance with all laws as well as the philosophy of fair housing for all people. Broker will present properties to Buyer in full compliance with local, State and Federal Fair Housing laws against discrimination on the basis of race, color, religion, sex, national origin, handicap, age, marital status and/or familial status, children or other prohibited factors.
IN-HOUSE SALES
6. If Buyer expresses interest in property owned by a Seller who also has an agency relationship with Broker, a conflict has arisen.
The Broker shall immediately advise both the Buyer and the Seller of the pertinent facts including the fact that a dual agency situation has arisen, and that by signing this agreement, Buyer agrees to the following:
With this fully informed consent, Buyer and Seller may elect to continue with Broker serving as a consensual dual agent, which is the exception to the general rule that agents serve one principal. As a dual agent, the firm and its licensee agents have a duty of fairness to both principals. By mutual agreement Buyer and Seller may identify who will negotiate for each principal.
For example:
[a] the licensee who signed the Buyer as a principal of the brokerage firm may negotiate on behalf of the Buyer principal and
[b] the licensee who signed the Seller as a principal of the firm may negotiate on behalf of the Seller principal.
In either case, the brokerage commission will be paid by the Seller in accordance with the listing agreement with the seller, unless different arrangements have been negotiated.
As a dual agent, the firm and its agents cannot furnish undivided loyalty to either party.
As a dual agent, the firm and its licensee agents have a duty not to disclose confidential information given by one principal to the other principal, such as the price one is willing to pay or accept. Such information may already be known to the firm and its agents. If the information is of such a nature that the agent cannot fairly give advice without disclosing it, the agent cannot properly continue to act as an agent.
OTHER POTENTIAL BUYERS
7. Buyer understands that other potential buyers may consider, make offers on, or acquire through Broker, the same or similar properties as Buyer is seeking to acquire. Buyer consents to Broker's representation of such other potential buyers before, during, and after the expiration of this Agreement. Broker agrees to disclose to Buyer if other buyers are negotiating with Broker on the subject property.
COMMISSION PAYMENT
8. [a] Escrow. If, for any reason, Broker is not paid the compensation set forth herein on the due date, Buyer shall establish an escrow account with a party mutually agreeable to Broker and Buyer or a title insurance agent or company, and shall place into said escrow account an amount equal to the compensation set forth herein. The escrow monies shall be paid by Buyer to said escrow agent and shall be held in escrow until the parties rights to the escrow monies have been determined:
(i) by the written agreement of the parties;
(ii) pursuant to an arbitration award;
(iii) by order of a court of competent jurisdiction; or
(iv) some other process to which the parties agree to in writing.
[b] Attorneys Fees. In any action, proceeding or arbitration to enforce any provision of this Agreement, or for damages caused by default, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and related expenses, such as expert witness fees and fees paid to investigators. In the event Broker hires an attorney to enforce the collection of any brokerage commission due hereunder and is successful in collecting all or any portion thereof with or without commencing a legal action or proceeding, Buyer agrees to pay the reasonable attorney’s fees, costs and related expenses incurred by Broker.
HOME EQUITY THEFT PREVENTION ACT
9. Buyer acknowledges that Buyer is aware of the Home Equity Theft Prevention Act and particularly, the provisions of Section 265 of the Real Property Law of the State of New York. In order to ensure compliance with same, Buyer warrants and represents to Broker that:
Buyer is either purchasing the property for Buyer’s use as a principal residence and not as an investor or purchasing the premises for investment purposes and may be deemed to be an Equity Purchaser under Section 265 of the Real Property Law.
In the event that the above circumstances change after the execution of this agreement, Buyer hereby covenants and agrees that Buyer will communicate with Broker regarding any change in Buyer’s status as a purchaser.
ADDITIONAL TERMS
10. [a] Upon request by Broker, Buyer agrees to provide a signature acknowledgement to a listing of properties shown to Buyer by Broker during the term of this Agreement.
[b] This document and any Addendum hereto, contains the entire agreement of the parties and supersedes all prior agreements or representations which are not expressly set forth herein between these parties.
[c] This Agreement may be modified only in writing signed and dated by both parties. Buyer acknowledges that Buyer has not relied on any statements of Broker which are not herein expressed.
PROPERTY
11. Type Of Property:__________________________________________________
Location:__________________________________________________
Price Range:_________________________
The undersigned Buyer acknowledges that Buyer has thoroughly read and approved each of the provisions contained herein and acknowledges receipt of a copy hereof.
Buyer:______________________________Date:_________________________
Broker:______________________________Date:_________________________
