EXCLUSIVE RIGHT TO REPRESENT BUYER AGREEMENT
Massachusetts law prohibits a real estate broker or salesperson from representing or negotiating on behalf of a buyer unless a buyer has an agreement (either written or verbal) to allow the broker or salesperson to act on the buyers behalf. For the protection of consumers, Massachusetts law encourages that all business relationships be defined in writing.
1. EXCLUSIVE RIGHT: Buyer(s) ___________________________________appoints RE/MAX® on island as buyer’s exclusive agent for the purpose of assisting Buyer to find and acquire an interest in suitable real property acceptable to Buyer.
2. GEOGRAPHICAL AREA: This appointment can be limited by the Buyer to the following towns of the Commonwealth of Massachusetts: Oak Bluffs, Vineyard Haven, West Tisbury, Edgartown, Chilmark, and Aquinnah
3. TERM OF AGREEMENT: This agreement shall begin on ______________ and expire at midnight on _____________ unless the Buyer client is represented by RE/MAX® on island in a pending transaction with a valid purchase agreement, then this representation agreement will extend through the closing date of that pending transaction.
4. BROKER’S DUTIES: Broker agrees:
(a) to attempt to locate a property acceptable to Buyer;
(b) to negotiate on buyer’s behalf terms and conditions agreeable to Buyer;
(c) to act in Buyer’s interest regarding the location, purchase or exchange of a property.
5. BUYER’S DUTIES: Buyer agrees:
(a) to tell Broker about all past and current contacts with any real property or any other real estate agents;
(b) to utilize Broker exclusively in following up leads or information about a property no matter what the source of such lead or information;
(c) to cooperate with Broker and be reasonably available to examine real property;
(d) upon request, to give Broker financial and personal info regarding Buyer’s needs and ability to purchase;
(e) to schedule all appointments to see a property exclusively through Broker.
6. OTHER TERMS AND CONDITIONS:
(a) Buyer agrees that Broker may represent other Buyers and show and sell other Buyers the same properties. Buyer needs to realize that if any of RE/MAX® on island’s buyer clients have interest in a particular property, that information is considered to be confidential and will not be disclosed to any other clients.
(b) Broker may share and disclose non-confidential information about Buyer with other agents who offer real property for sale.
(c) Buyer understands that this Agreement is an exclusive appointment and agrees to cancel in writing all outstanding Open Right to Represent Buyer Agreements signed by Buyer with any other broker. Buyer represents that Buyer is not currently bound by an Exclusive Agreement with another broker, and understands that if this were the situation, Buyer would possibly be liable for the payment of more than one fee. Buyer agrees not to enter into another Exclusive Agreement with any other broker unless this Agreement has terminated.
(d) This Agreement may be terminated if the following conditions are met;
1) the Agreement expires; or Buyer and Broker mutually agree to terminate this Agreement, in writing, prior to expiration.
2) Broker reserves the right to re-assign you to another agent within the firm or to refer you to another agency for representation should the parties mutually decide that is best.
NOTICE: THE AMOUNT OR RATE OF REAL ESTATE BROKER COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH BROKER INDIVIDUALLY AND MAY BE NEGOTIABLE BETWEEEN YOU AND THE BROKER.
7. BUYER AGREES TO THE FOLLOWING PROFESSIONAL SERVICE FEE:
(a) Buyer agrees that Broker is entitled to a fee if (1) during the original term of this Agreement or any extension, Buyer enters into a contract to purchase or acquires a property acceptable to Buyer. If Buyer attempts to avoid the obligations under this Agreement to Broker, then Buyer shall be obligated to pay the Service Fee.
(b) Broker’s Professional Service Fee shall be at least 3% of the purchase price of the property purchased by Buyer. If the amount offered through LINK is less, the Broker may elect to reduce the fee. Conversely, if Broker receives a fee from any of the above sources in excess of the amount stated in this Agreement, Buyer agrees that Broker may accept that amount.
(c) If Buyer wishes to purchase a property not listed through the LINK, the Broker’s fee for this service shall be 5%. The Broker may elect to reduce this fee if the best interests of the client are at issue.
(d) Broker will make every effort to obtain the above Professional Service Fee from the Seller, the Listing Agency, the buyer broker fee from LINK, or structured within an offer to purchase from the proceeds of the sale or from the transaction.
(e) The Professional Service Fee is due no later than the date on which title to the real property transfers to Buyer. The obligation to pay a fee will automatically extend through the date of the actual closing and transfer of title, even though this date occurs after the term of this Agreement or any extension expires.
8. STATEMENTS REQUIRED BY LAW:
Fair Housing: This Agreement is subject to the Massachusetts Statutes prohibiting discrimination in commercial and residential real estate transactions.
IT IS UNLAWFUL UNDER FEDERAL AND/OR STATE LAW TO DISCRIMINATE ON THE BASIS OF RACE, CREED , COLOR, NATIONAL ORIGIN, ANCESTRY, SEX, SEXUAL ORIENTATION, MARITAL STATE, AGE, LAWFUL SOURCE OF INCOME, LEARNING DISABLITILY, MENTAL DISIBAILITY, FAMILIAL STATUS AND/OR PHYSICAL DISABILITY.
9. DUAL AGENCY
(a) Buyer understands that Broker represents sellers in addition to buyers and Buyer agrees that Broker may represent both Buyer and Seller in the purchase and sale of a property and that Broker will be the agent of both the Buyer and a seller. In that event, Buyer consents to and confirms this consent to a possible dual representation.
(b) In the event of a dual representation, Buyer agrees Broker shall not be required to and shall not disclose to either party any personal, financial or other confidential information without the express written consent of the party whose information is disclosed, other than information related to material property defects which are known to Broker and any other information Broker is required to disclose by law.
(c) Broker may not disclose;
(i) to the Buyer that a Seller will accept less than the asking price, or to the Seller that the Buyer can or will pay more than what is stated in a written offer unless instructed by that client in writing;
(ii) the motivation of either client, unless other wise instructed to do so by the respective client;
(iii) that the Buyer or the Seller will agree to finance terms other than those offered, unless instructed in writing
by the respective client.
(d) Property information available through LINK or other sources, including listed and sold properties, which has been requested by either client, will be disclosed to both clients.
(e) Broker shall remain impartial to each client and shall facilitate a mutually agreed upon sale.
(f) Broker agrees to immediately inform Buyer when Broker is showing Buyer a Seller client’s property.
(g) Broker shall be able to perform in a dual capacity with the written and informed consent of both clients.
10. GENERAL CONSIDERATIONS: Buyer and Broker both understand that this is a binding agreement and either party may enforce their rights under this Agreement in a court of law, or through arbitration after all independent mediation efforts have been exhausted. If Buyer or Broker go to court or pursue arbitration to enforce their rights under this Agreement, the prevailing party shall be entitled to be paid as part of the award, their costs and expenses, including this transaction, the legal title to property, tax considerations, property inspections, engineering, or the uses of neighboring properties, Buyer should consult with an attorney, a tax advisor, a building inspector or appropriate governmental agencies.
Execution by Facsimile: The parties agree that this Agreement and any attached addenda, may be transmitted between them by facsimile machine and the parties intend that a faxed Agreement containing either the original and/or copies of the signature of all parties shall constitute a binding Agreement.