EXCLUSIVE RIGHT TO REPRESENT AGREEMENT
__________________________________________________(Buyer) hereby retains Grand Lux Realty, Inc. (Broker) represented by__________________________________________________, (Buyer’s Agent) 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:
1. This Agreement begins upon signing and ends on_________________________, or upon the closing of a property purchased in accordance with this Agreement.
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 Broker if a written authorization granting exclusive authority exists;
[e] Assist Buyer in obtaining financing and in researching financing alternatives;
[f] The terms Buyer and Tenant shall be interchangeable on this Agreement if the Buyer is looking to lease property instead of buying.
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, exchanges for, obtains an option on, or leases real property. The compensation shall be_________________________or_________________________% of the purchase price of the property or_________________________% of the aggregate rental of the lease and all options as exercised or_________________________, which sum shall become due and payable when Buyer signs a lease with lessor or 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 Brokers, but in no event less than the amount set forth above. Buyer is obligated to pay Broker this fee, regardless of whether Broker earns any monies paid by other sources on this or any other transaction.
[c] Buyer acknowledges that if within one (1) month of the termination of this Agreement, with or without the services of a Licensed Broker, Buyer buys, exchanges for, obtains an option on, or leases 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 Buyer Agency Agreement is entered into with another Licensed 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.
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.
6. If Broker has an agency relationship with Buyer (Buyer’s Broker), and Buyer expresses interest in property owned by a Seller who also has an agency relationship with Broker (Listing Broker), a conflict has arisen.
The Broker shall immediately advise both the Buyer Client and Seller Client 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 the brokerage firm 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 the buyer and seller may identify who will negotiate for each principal.
[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.
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.
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.
11. Type Of Property:
[ ]..Residential Income
[ ]..Vacant Land
General Nature Of Property:
The undersigned Buyer acknowledges that [he] [she] has thoroughly read and approved each of the provisions contained herein and acknowledges receipt of a copy hereof.
Buyer’s Mailing Address:
Buyer’s Telephone Number:
Buyer’s Cellphone Number:
Buyer’s Fax Number:
Broker’s Company: Grand Lux Realty, Inc.
Broker’s Mailing Address: 428 Main St., Armonk, NY 10504
Broker’s Telephone Number: 914-273-9688
Broker’s Fax Number: 914-765-0518
Buyer’s Agent’s Name:
Buyer’s Agent’s Cellphone Number:
Buyer’s Agent’s eMail: