Exclusive Agreement with Real Estate Broker to Locate Property

Exclusive Agreement with Real Estate Broker to Locate Suitable Retail or Commercial Property to Lease or Purchase

Agreement made on the (date), between , of , hereinafter referred to as Client, and , of , hereinafter referred to as Broker.

Whereas, Client desires to real estate in (describe area such as counties and state) to use as (describe use) ;

Whereas, Broker is a licensed real estate broker in the state of ; and

Whereas, Client desires to employ Broker, and Broker desires to be employed, as an agent to obtain such property for Client to ;

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Employment of Broker

A. Client employs Broker as his/her agent to obtain a contract for Client to real property which meets the following criteria:

1. Price Range ;

2. Property suitable for (describe use) ;

3. Type of location (e.g., rural, urban, industrial, traffic pattern, nearby population, age of building; etc.) ;

4. Size of building and lot ;

5. Zoning classification ;

6. Additional criteria .

B. Broker shall have the exclusive right to obtain such a contract for a period of (number) days from the effective date of this agreement.

2. Commission

Client agrees that Broker will be paid a commission of % of the purchase price of the property (or describe formula in case of a lease) if Broker is successful in obtaining such a contract during the period set forth above. It is understood and agreed that Broker’s commission may be paid by Client, by the seller or lessor of the property, or by both parties to the transaction with each paying part of said commission.

3. Conditions and Terms of Contract of Sale

A. Seller must agree to sell the property by a recordable deed, subject only to: (a) covenants, conditions, and restrictions of record; (b) private, public, and utility easements and roads and highways; (c) party wall rights and agreements; (d) existing leases and tenancies acceptable to Client; and (e) general taxes for the year and subsequent years.

B. Earnest money shall be no more than $.

C. Seller shall furnish to Client an American Land Title Association owner’s policy insuring title to the property subject only to the exceptions set forth in Subparagraph A and any mortgage or deed of trust executed by Client to secure a loan for the proceeds of the purchase price of the property.

D. Seller, at seller's own expense, shall agree to furnish Client with a current plat of survey of the property acceptable to the title company and certified by the surveyor as having been made in compliance with the Land Survey Standards.

E. Seller, at seller’s expense, shall provide Client with an appraisal from a MAI certified appraiser showing that the fair market value of the property is at least the purchase price of the property.

F. The date and time of the closing shall be within days of the date the contract is entered into, or at such other date and time as shall be mutually agreed to by the parties.

G. Seller must warrant that seller has received no notices from any city, village, or other governmental authority of zoning, building, fire, or health code violations in respect to the real estate that have not been corrected.

H. Rents, premiums under assignable insurance policies, water and other utility charges, fuels, prepaid service contracts, general taxes, and other similar items shall be adjusted ratably as of the time of the closing.

4. Covenant of Broker

Broker covenants to use his/her best efforts and to act diligently in attempting to obtain the property.

5. Exclusive Agency

The parties agree that this is an exclusive agency listing and broker shall be entitled to the commission established in this agreement if the above described contract is procured by any broker during the term of this agreement, or to any prospect first submitted to Client directly or indirectly by Broker during the period of this agreement.

6. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

7. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

8. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

9. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

10. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

11. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

12. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.