The Exclusive Buyer Brokerage Engagement Agreement is a fundamental document in U.S. real estate transactions that protects both the buyer's and broker's interests. It is typically used when a serious buyer wants dedicated professional representation in their property search and acquisition process. The agreement ensures the broker's commitment to finding suitable properties while being compensated for their services. This document includes specific provisions required by state laws, outlines the scope of services, defines the geographic area of search, and establishes the terms of compensation. It's particularly important in competitive real estate markets where having dedicated representation can be crucial for successful property acquisition.
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1. Parties: Identification of the buyer and the real estate brokerage firm
2. Background: Context of the agreement and general purpose
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of services provided by the broker
5. Term and Termination: Duration of agreement and termination conditions
6. Compensation: Commission structure and payment terms
7. Broker's Obligations: Specific duties and responsibilities of the broker
8. Client's Obligations: Buyer's responsibilities and commitments
9. Signatures: Execution block for all parties
1. Dual Agency Provisions: Required when broker may represent both buyer and seller in jurisdictions allowing dual agency
2. Property Preferences: Specific criteria for desired property, used when buyer has specific requirements
3. Dispute Resolution: Arbitration or mediation procedures for alternative dispute resolution
4. Confidentiality: Terms regarding confidential information when sensitive information will be shared
1. Agency Disclosure Form: State-mandated disclosure of agency relationships
2. Fee Schedule: Detailed breakdown of compensation structure
3. Property Requirements Checklist: Detailed list of buyer's property criteria
4. Service Area Map: Geographic boundaries of broker's service area
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