Contract to Assist Real Estate Agent in Closing Sale of Residential Property

Contract to Assist Real Estate Agent in Closing Sale of Residential Property

Agreement made on the day of , 20 between of , referred to herein as Contractor, and , a corporation organized and existing under the laws of the state of with its principal office located at , referred to herein as Realtor.

Whereas, Contractor is in the business of assisting realtors with residential real estate transactions from the execution of the contract by the buyer and seller to the consummation of the sale of the residential real estate;

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:

I. Work to be Performed

Realtor hereby hires Contractor to perform services in connection with residential real estate transactions from the execution of the contract by the buyer and seller to the consummation of the sale of the residential real estate. Said services shall include, but not limited to such services as the following:

• coordinating the ordering of the necessary title examination, survey and making sure that the necessary title insurance commitments are timely issued;
• determining the payoff of any existing mortgage or deed of trust covering the property;
• ordering any home inspection report that is necessary and insuring that such report is timely issued;
• insuring that all liens and encumbrances affecting the subject property are satisfied prior to or at the closing of the transaction;
• coordinating a closing date with the closing attorney, Realtor, buyers, sellers, and lender;
• order any necessary termite inspection and insuring that it is done in a timely fashion;
• coordinating with buyers and lenders that buyers qualify for the necessary mortgage loan;
• coordinating with the buyers that the appropriate hazard insurance binders are timely issued;
• coordinating the delivery of the final loan package from the lender;
• keeping Realtor, buyers, sellers, and lender informed as to the progress of the accomplishment of the acts necessary to finally consummate the sale; and
• making sure that the closing proceeds in a smooth and timely manner.

II. Compensation

A. In consideration of all services to be rendered by Contractor to the Realtor, the Contractor shall be paid (state sum, percentage, amount or formula for payment).

B. Contractor is an independent contractor and shall be responsible for his own income taxes and other employment taxes.

C. Said compensation shall be paid to Contractor from Realtor's commission and reflected on any closing and/or settlement and disbursement statement as required by law, including, but not limited to, the Real Estate Settlement Procedures Act.

III. Status as an Independent Contractor

Contractor acknowledges that he is an independent contractor and is not an agent, partner, joint venturer nor employee of Realtor. Contractor shall have no authority to bind or otherwise obligate Realtor in any manner nor shall Realtor represent to anyone that he has a right to do so.

IV. Default

In the event of a default under this Agreement, the defaulting party shall reimburse the non-defaulting party for all costs and expenses reasonably incurred by the non-defaulting party or parties in connection with the default, including without limitation, attorney's fees.

V. No Waiver of any Provision

No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

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

VII. This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and it supersedes all prior contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all parties.

VIII. Indemnification of Contractor

To the fullest extent permitted by law, Realtor agrees to defend, indemnify, and hold the Contractor and the employees of Contractor harmless from any claims, damages, losses, fines, or penalties (including related costs, expenses, and reasonable attorney's fees) that may arise in whole or in part from Contractor's work on behalf of Realtor.

IX. Mandatory Arbitration

Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, 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.

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