Exclusive Buyer Agency Agreement

Contract to be Exclusive Agent for Buyer and to Charge Fixed Rate of Commission in a Real Estate Transaction

This form has important legal consequences and the parties should consult legal and tax or other counsel before signing. Compensation charged by real estate Brokers is not set by law. Such charges are established by each real estate Broker. Different Brokerage Relationships are available which include Buyer Agency, Seller Agency, Subagency, or Transaction Broker.

Agreement made on the , between of , referred to herein as Buyer, and of , referred to herein as Broker.

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. Agency.

Buyer appoints Broker as Buyer’s exclusive agent for the purpose of representing Buyer to acquire a house and lot, hereinafter referred to as Property and under the terms specified herein.

2. Effect of Exclusive Buyer Agency Contract.

Broker is the limited agent of Buyer and will represent only Buyer. By engaging Broker as Buyer's exclusive agent, Buyer agrees to conduct all negotiations for Property through Broker and to refer to Broker all inquiries received from real estate Brokers, salespersons, prospective sellers, or any other source during the time this contract is in effect. Buyer agrees that any compensation to Broker (which is conditioned upon the acquisition by Buyer of Property), will be earned by Broker whenever a Purchase of Property is made by Buyer, without any discount or allowance for any efforts made by Buyer or any other person in connection with the acquisition of such interests by Buyer.

3. Purchase.

Purchase of the Property or Purchase means the voluntary acquisition of any interest in the Property or the voluntary creation of the right to acquire any interest in the Property (including a contract or lease).

4. Property.

The Property shall substantially meet the following requirements or be otherwise acceptable to Buyer:

5. Duration of Agency.

Broker's authority as Buyer's exclusive agent will continue until the earlier of , or completion of the acquisition of the Property.

6. Broker's Services.

Broker will exercise reasonable skill and care for Buyer, and make reasonable efforts to locate Property.

A. Broker will promote the interests of Buyer with the utmost good faith, loyalty, and fidelity, including but not limited to:

1. Seeking a price and terms which are acceptable to Buyer, except that Broker shall not be obligated to seek other properties while Buyer is a party to a contract to purchase Property;

2. Procuring acceptance of any offer to purchase Property and to assist in the completion of the transaction;

3. Presenting all offers to and from Buyer in a timely manner, regardless of whether Buyer is already a party to a contract to purchase Property;

4. Disclosing to Buyer adverse material facts actually known to Broker;

5. Counseling Buyer as to any material benefits or risks of the transaction which are actually known to Broker;

6. Advising Buyer to obtain expert advice as to material matters about which Broker knows but the specifics of which are beyond the expertise of Broker;

7. Accounting in a timely manner for all money and Property received, and

8. Informing Buyer that Buyer may be vicariously liable for the acts of Broker when Broker is acting within the scope of the agency relationship.

B. Broker shall not disclose to the seller or any other third party, without the informed consent of Buyer:

1. That Buyer is willing to pay more than the purchase price for Property;

2. What Buyer's motivating factor(s) are;

3. That Buyer will agree to financing terms other than those offered;

4. Any material information about Buyer unless disclosure is required by law or failure to disclose such information would constitute fraud or dishonest dealing; and

5. Any facts or suspicions regarding circumstances which would psychologically impact or stigmatize Property.

C. Broker shall disclose to any prospective seller all adverse material facts actually known by Broker, including but not limited to adverse material facts concerning Buyer's financial ability to perform the terms of the transaction and whether Buyer intends to occupy Property as a principal residence.

D. Broker shall make submissions to Buyer describing and identifying properties appearing to substantially meet the criteria set forth in Section 3.

6. Costs of Services or Products Obtained from Outside Sources.

Broker will not obtain or order products or services from outside sources unless Buyer has agreed to pay for them promptly when due. (Examples: surveys, soil tests, radon tests, title reports, and Property inspections.)

7. Compensation to Broker.

In consideration of the services to be performed by Broker, Buyer shall pay Broker as follows:

A. Success Fee. Broker shall be paid a fee equal to the greater of $ or % of the purchase price. The success fee is conditioned upon the Purchase of the Property or the acquisition by Buyer of Property not in compliance with the requirements specified in Section 3 but within the purview of this contract. This fee is payable upon closing of the transaction(s), subject to the provisions of Section 8. This fee shall apply to Property contracted for during the original term of this contract or any extension(s) and shall also apply to Property contracted for within days after this contract expires or is terminated (Holdover Period) if the Property was shown or specifically presented in writing to Buyer by Broker during the original term or any extension(s) of the term of this contract; provided, however, that Buyer shall owe no commission to Broker under this subsection if a commission is earned by another licensed real estate Broker acting pursuant to an exclusive right-to-buy contract or an exclusive agency listing contract entered into during the Holdover Period. Buyer is obligated to pay Broker's fee. However, Broker is authorized and instructed to request payment of Broker's fee by Seller from the transaction.

B. Retainer Fee. Buyer shall pay Broker a nonrefundable retainer fee of $ due and payable upon signing of this contract. This amount shall not be credited against fees payable to Broker in this Section 7.

8. Failure to Close.

If a seller fails to close with no fault on the part of Buyer, the success fee provided in Section 7-A shall be waived. If Buyer is at fault, such success fee will not be waived, but will be due and payable immediately. Broker shall not be obligated to advance funds for Buyer.

9. Disclosure of Broker's Role.

At the earliest reasonable opportunity, Broker shall inform any prospective sellers or their Brokers with whom Broker negotiates pursuant to this contract that Broker is acting on behalf of a Buyer-principal.

10. Disclosure of Buyer's Identity.

Broker have Buyer's permission to disclose Buyer's identity to third parties without prior written consent of Buyer.

11. Other Buyers.

Broker may show properties in which Buyer is interested to other prospective Buyers without breaching any duty or obligation to Buyer.

12. Assignment by Buyer.

No assignment of Buyer's rights or obligations under this contract and no assignment of rights or obligations in Property obtained for Buyer under this contract shall operate to defeat any of Broker's rights.

13. Nondiscrimination.

The parties agree not to discriminate unlawfully against any prospective seller because of the race, creed, color, sex, marital status, national origin, familial status, physical or mental handicap, religion or ancestry of such person.

14. Recommendation of Legal Counsel.

By signing this document, Buyer acknowledges that Broker has advised that this document has important legal consequences and has recommended consultation with legal and tax or other counsel, before signing this contract.

15. 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.

16. Governing Law.

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

17. 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.

18. Attorney’s Fees.

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

19. 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.

20. 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.

21. 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.

22. 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.

23. Counterparts.

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

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