Sign Texas Terms of Use Agreement Simple

TAR # TREC # DESCRIPTION OF FORM - Multiple Listing Technology

hi everybody Frank Wright here with abbey realty and i want to do probably about a nine or ten minute tutorial on how to complete the residential buyer tenant representation agreement this will not be an in-depth study of the meaning of all the terms and conditions of the agreement but I'm at least going to show you how to fill it out and what goes in the blanks so here goes paragraph one the parties you identify the client and their contact information then your brokerage and contact information down in paragraph three identify the market area where you will be representing these clients if they're looking in spraying don't put spring or pearland don't put pearland because buyers are notorious for identifying a very specific area and then jumping off somewhere else so I typically like to put in their Houston metro area for the term in paragraph four obviously the date that you start looking you want to have that data in there for sure and earlier if you've been meeting for planning sessions with the buyers if they're planning to buy in the short term you might want to put a six-month term in here because sometimes it takes longer than expected if the buyers are looking at new construction or some date several months in the future to actually consummate a purchase then go out 12 months pad your time frame here to allow for delays and so your your agreement doesn't expire before the home closes scrolling on down at the top of page two it's gonna ask you to identify the parties to this agreement I like to put the last name of my buyers and then my name my last name and then that will auto populate on all the subsequent pages paragraph eight intermediary one of the most important paragraphs in this agreement it's where the buyer authorizes you to show listings held by your broker all of your company's listings now it states in here what could happen should your buyer choose to contract for a listing held by your brokerage the broker could appoint another agent to present the seller the broker could appoint somebody to represent the buyer you could be representing either one or option number three and this would really be the case if you're showing them one of your own personal listings you could move to the middle not represent either party but just facilitate the transaction pass information back and forth don't take sides and just complete the documents very importantly this paragraph doesn't state which of those options will be exercised in the event your buyer wants to submit an offer on a brokerage listed property when that happens you'll want the buyer and the seller to complete the actual intermediary agreement where those options are identified and selected let's move on paragraph 9 paragraph 10 paragraph 11 here's where we get to the money first of all you're gonna put in here the percentage of the sale price that you will earn if a sale contract is put together typically it will be 3% but that is not set in stone and you'll put in here whatever percentage is appropriate for the type of property the price range or what you negotiate with your buyer the second part asks you to identify how a lease contract is going to be compensated some agents will check the first box and put 50% of one month's rent which is very typical and commonplace if you're talking about a 12-month lease but what about if it's a short term lease six months in that case 50% of one month's rent might be overpaying you at least from the landlord's perspective or from the other side what if it's a two-year lease a long term lease half of one month's rent might not be fair compensation to you you probably earn a bigger portion of that so what I like to do is check this second box and put in for point one percent for point one six percent of all rents to be paid over the term of a lease if you do the math that's equivalent to a half month's rent on a 12-month lease but it's less on six month lease it's more on a 24 month lease I love that because it scales the compensation to the total of amount of rents paid to be paid over the term of the lease let's keep rolling down here paragraph F deals with compensation if you're gonna be negotiating construction improvements I've never done that so anybody who is that will skip over paragraph three because that's just a big blank ji protection period this is an important one here you're gonna write in the number of days after the expiration or termination of this agreement in which you could possibly still be compensated if the buyer purchases a property that you showed them while this agreement was in effect now a lot of agents have actually never read this paragraph they think that if they were the procuring cause they showed a property under the terms of this agreement but then the agreement expired and the buyers went out and purchased it either on their own or with another agent the original agent thinks they're entitled compensation not necessarily read this what this paragraph says you have to actually provide a written list within ten days of the properties that you're claiming protection on to the buyer and oh by the way if they enter into a buyer's rep agreement with another agent then this whole paragraph is null and void anyway you're not going to get paid even if you did show them that home originally so understand this paragraph so you can properly explain it to your clients when they ask you I've seen 10 days 30 days 60 days you put in here a number that you're comfortable with down to paragraph 11 I all amounts under this agreement are to be paid in a particular County you definitely want to insert the county where your brokerage is located but it's also appropriate to add another County if the property that you're looking at or considering is in another County so it could be Montgomery and Fort Bend it could be Harris County and Galveston County you can't get a lot of counties in here so if you get in one or two including your brokerage County you'll be in good shape paragraph 16 the addenda information about brokerage services is automatically checked because it's a required document at first substantial discussion with a buyer you'll also want to check information and notice to a buyer and then if there's a mold issue or possibility if the home was built prior to 1978 definitely you want to include the lead notice in Houston not a bad idea to always include the special flood hazard area notice even if it's not in a flood zone and then finally again cya for your protection get a home inspection it's just a brochure that can be provided that warns or notifies the buyer that that's in their best interest paragraph 17 special provisions you're rarely going to put anything in here it is where most agents get in trouble as they start practicing law without a license so don't write anything in this paragraph without first getting permission from your broker because you don't want to stray over into the practice of law sometimes some information needs to be added but it needs to be factual and explanatory and stay away from writing laws if then well let's keep on scrolling down here to the bottom of the document page five you want to fill in license number check the broker's associate signature that's who you are unless you are the broker for the office you're gonna sign here client signature and date on the right and that's it we have made it all the way through five pages of the residential bio tenant representation agreement obviously you might have additional questions about the meaning of some of these paragraphs that we didn't have time to get into feel free to reach out to me my name is Frank gray I'm the broker owner of Abby Realty and I'm here to help thanks for watching