The Real Estate Café
97a Garden Street, Cambridge MA 02138 (617) 661-4046
Exclusive Buyer Agency Contract
By mutual agreement, the prospective Client:
(hereinafter called the "Client") enters into this contract with The Real Estate Café (hereinafter called "TREC"), and authorizes them to act as their EXCLUSIVE AGENT, to purchase a desired property.
I. TERMS OF AGREEMENT
A. Broker Duties
- TREC shall represent the Client and act in their best interest at all times.
- TREC shall negotiate for the best price and terms for the Client.
- TREC shall conduct due diligence, market analysis, and research on the property, as needed using appropriate tools available to TREC including MLS, Internet etc.
- TREC shall offer the Client undivided loyalty, utmost care, full disclosure, obedience to lawful instruction, confidentiality, and accountability.
- Working with the Client, TREC shall make all reasonable efforts to:
- Locate properties which meet Client criteria;
- Schedule and view properties with Client;
- Counsel the Client on the estimated market value of the properties;
- Negotiate terms and conditions of the offer to purchase which are acceptable to the Client, and assist in the completion of the transaction.
- Provide information to educate the Client on aspects of property searches, property pricing, financing, etc., including relevant web sites, current market conditions, articles and publications, educational seminars and others.
B. Client Duties
- The Client agrees to be pre-qualified by a mortgage lender within 7 days of entering into this contract.
- The Client agrees to provide a mortgage lender with personal and financial information, which shall be treated confidentially, to demonstrate the Client’s ability to purchase the property described above.
- The Client agrees to refer all inquiries from real estate agents, prospective sellers, or any other source, to TREC.
- The Client agrees to work with TREC during all stages of negotiation.
- The Client agrees to have TREC schedule all private showings of properties, regardless of how those properties were discovered, including properties found by the Client. A FAILURE TO FOLLOW THIS PROCEDURE MAY RESULT IN A LOSS OF RETAINER AND/OR REBATE.
- The Client shall inform all other licensed real estate agents, particularly seller agents at open houses, that the Client is represented exclusively by The Real Estate Café. A FAILURE TO FOLLOW THIS PROCEDURE MAY RESULT IN A LOSS OF RETAINER AND/OR REBATE.
The Client and TREC shall work together to acquire the desired property. This agreement is mutually binding and shall exclude all other licensed real estate agents. However, when appropriate, TREC may add the services of other real estate professionals to the home buying team by mutual consent. TREC encourages and supports any Client efforts to buy properties directly from sellers, i.e., For Sale By Owner (FSBO) properties.
A. Authorization to request compensation
The Client shall authorize TREC to request payment of the buyer agent fee (typically 2 - 3.5% of sale price) in the purchase price negotiated with the seller. TREC shall insert the appropriate contingencies into the Client’s offer to insure that TREC shall receive its compensation out of the proceeds of the real estate transaction.
The Payment Option section of the Contract chosen by the Client shall determine the fee amount. Each Payment Option entitles Client to varying degrees of access to TREC’s professional services as described below and in any attached scope of work.
B. Payment Options
The Client must choose one of the following payment option plans:
SEE ADDENDUM: NEW BUYER AGENCY FEES EFFECTIVE MARCH 1, 2007
Payment Option Chosen: _________ Client Initials: _________
C. Residual Contract Time Based on Property Purchased
Occasionally, a Client will attempt to avoid compensating TREC and/or its Agents by purchasing or acquiring an interest in properties after their contractual relationship with TREC expires. To protect itself against this practice, the Client agrees to pay TREC the appropriate fee as determined by the Option chosen above, if:
1. The Client or Client’s nominee and/or agent acquires the property, rights to the property or any other legal interest in that property, within 60 days after this contract with TREC expires, and;
2. The Client received information about that property from TREC, its Agents, Venture Partners, or from others associated, in any way, with TREC.
D. Client default
If the Client is able to purchase a property and has signed a Purchase and Sales Agreement and chooses not to, even though all terms of the purchase contract have been satisfied, the Client will be required to pay TREC the agreed upon fee.
IV. TERMINATION RIGHTS
The Client or TREC may terminate this agreement in writing at any time up to 10 days from the date of the signing this contract for any reason. If the agreement is terminated during this period, all retainers shall be refunded to the Client. After the 10th day, either party may terminate the agreement in writing at any time during the balance of the contract for any reason, but Client shall not receive a return of any retainers.
V. SERVICE LIMITATIONS
TREC services shall not include Commercial/Industrial Developments as these require new terms of service and fee schedules.
- INDEMNIFICATION OF TREC
Except for clearly foreseeable and negligent acts by TREC, and its Agents, or the failure of TREC or its Agents to meet its duties detailed in Section 1, A of this agreement, the Client agrees to hold TREC harmless for injuries suffered, monetary or otherwise, from the purchase of real property using TREC’s real estate purchasing services.
- OUTSIDE REVIEW
The Client and TREC understand that this is legally binding agreement. For the Clients convenience and peace of mind, TREC urges Client to review this document with their attorney.
VIII. TERM OF CONTRACT
The term of this agreement shall commence on _________ and terminate on ___________.
TREC Buyer Agent