EXCLUSIVE RIGHT TO REPRESENT AGREEMENT
Buyer______________________________________________________________________________ [hereinafter called "Client"] hereby retains _____________________________________________________________________[hereinafter called "Broker"] represented by __________________________________________________________["Salesperson/Associate Broker"] to assist Client in locating and/or negotiating for the purchase of real property, a general description of which is provided below. The terms and conditions of this Agreement are as follows:
1. AGREEMENT PERIOD
This Agreement begins upon signing and ends at on ______________________________, 200___ or upon the closing of a property purchased in accordance with this Agreement.
2. BROKER'S OBLIGATIONS
Broker agrees to: [a] Use diligence in locating a property on price and terms acceptable to Client; [b] Use professional knowledge and skills to negotiate for Client's purchase of the property; [c] Assist Client throughout the transaction and act in Client's best interests at all times; [d] Present purchase offers to the seller or to seller's agent if a written authorization granting exclusive authority exists; [e] Assist Client in obtaining financing and in researching financing alternatives.
During the term of this Agreement, Client agrees:
[a] To provide to Broker upon request:
[i] the general nature, location, requirements and preferred terms and conditions, which Client is seeking in connection with the acquisition of desired property; and
[ii] relevant personal and financial information to assure Client's ability to obtain financing;
[iii] Client agrees to work exclusively with Broker and not with other real estate brokers, salespersons or owners, with respect to viewing properties and agrees to refer to Broker all inquiries in any form from any other real estate broker, salesperson, prospective seller or any other source; and
[iv] conduct in good faith all negotiations for property, exclusively through Broker.
[b] To compensate Broker if Client or any other person acting on Client's behalf buys, exchanges for, obtains an option on, or leases real property. The compensation shall be $_________________ or ___________ % of the purchase price of the property or ___________ % of the aggregate rental of the lease and all options as exercised or $ __________________, which sum shall become due and payable when Broker brings about a meeting of the minds between Client and the seller/lessor.
If the property is listed with a real estate company or licensee, Broker will accept a fee equal to the fee being offered to cooperating agents, but in no event less than the amount set forth above. If such fee, or any portion thereof, is paid by the seller/lessor or the seller's/lessor's agent as a convenience of the transaction, Client will be credited by Broker for the amount so paid.
[c] Client acknowledges that if within _______________ months of the termination of this Agreement, with or without the services of a licensed agent, Client buys, exchanges for, obtains an option on, or leases real property shown to Client by Broker during the term of this Agreement, compensation as set forth in this Agreement shall be applicable and Client shall pay such fee to Broker, provided however, that if during such protection period a valid exclusive buyer agency agreement is entered into with another real estate broker, any payments made thereunder for said transaction may be credited against the sums otherwise due and owing pursuant to this agreement.
4. ADVICE ON TECHNICAL MATTERS
Broker will not counsel Client on legal matters, home inspections, public health, surveying, tax, financial or other technical matters which are outside of the scope of the Broker's expertise. Broker has recommended to Client that Client seek the advice and counsel of qualified experts in connection with the physical condition of the property, its state of repair, water, termite, radon, lead and similar tests and as to legal matters with respect to the property. Client hereby acknowledges that it is Client's sole responsibility for obtaining such services and for retaining any experts which Client chooses to obtain.
5. FAIR HOUSING
Broker is committed to compliance with all laws as well as the philosophy of fair housing for all people. Broker will present properties to Client in full compliance with local, State and Federal Fair Housing laws against discrimination on the basis of race, color, religion, sex, national origin, handicap, age, marital status and/or familial status, children or other prohibited factors.
6. IN-HOUSE SALES
If Broker has an agency relationship with Client ["buyer's broker"], and Client expresses interest in property owned by a seller who also has an agency relationship with Broker ["seller's broker"], a conflict has arisen.
The Broker shall immediately advise both the buyer client and seller client of the pertinent facts including the fact that a dual agency situation has arisen, and that the following options are available:
 Broker and Client could dissolve their Agency relationship. Client may then seek to retain another broker, and/or an attorney, or may represent (her)himself. This would release Client from any Broker employment contract which was entered into with Broker. Broker may continue to act as agent for seller.
 Broker and the seller could dissolve their Agency relationship. The seller may then seek to retain another broker, and/or an attorney, or may represent (her)himself. This would release the seller from any listing agreement which was entered into with Broker. Broker may continue to act as Agent for Client.
 With fully informed consent, Client and seller may elect to continue with the brokerage firm serving as a consensual dual agent, which is the exception to the general rule that agents serve one principal. As a dual agent, the firm and its licensee agents have a duty of fairness to both principals. By mutual agreement the buyer and seller may identify who will negotiate for each principal. For example: [a] the licensee who signed the buyer as a principal of the brokerage firm may negotiate on behalf of the buyer principal and [b] the licensee who signed the seller as a principal of the firm may negotiate on behalf of the seller principal.
In either case, the brokerage commission will be paid by the seller in accordance with the listing agreement with the seller, unless different arrangements have been negotiated.
As a dual agent, the firm and its agents cannot furnish undivided loyalty to either party.
As a dual agent, the firm and its licensee agents have a duty not to disclose confidential information given by one principal to the other principal, such as the price one is willing to pay or accept. Such information may already be known to the firm and its agents. If the information is of such a nature that the agent cannot fairly give advice without disclosing it, the agent cannot properly continue to act as an agent.
The buyer, seller and broker shall memorialize the option of their mutual choice by executing a statutory disclosure notice. If there is no mutual agreement, the proposed transaction between buyer and seller shall not be pursued.
7. OTHER POTENTIAL BUYERS
Client understands that other potential buyers may consider, make offers on or acquire through Broker, the same or similar properties as Client is seeking to acquire. Client consents to Broker's representation of such other potential buyers before, during and after the expiration of this Agreement.
8. PURCHASE OFFER MONEYS
In the event Client provides to Broker a check for purchase offer moneys, Client hereby instructs Broker to hold said check pending acceptance of the offer and to deliver or deposit said check when, as and if an offer made by Client has been accepted by Owner. If Broker is also agent of the Owner, Client acknowledges that upon acceptance of Client's offer and deposit of such funds, that Broker will be acting as agent of both the Owner and Client with respect to such moneys and will release such moneys only as follows:
[a] upon direction of Client and Owner; or
[b] to an attorneys' escrow account maintained by Owner's attorneys; or
[c] deposit same with the Clerk of the Supreme Court in the County in which the property is located, pursuant to an interpleader petition.
9. COMMISSION PAYMENT
[a] Escrow. If, for any reason, Broker is not paid the compensation set forth herein on the due date, Client shall establish an escrow account with a party mutually agreeable to Broker and Client or a title insurance agent or company, and shall place into said escrow account an amount equal to the compensation set forth herein. The escrow monies shall be paid by Client to said escrow agent and shall be held in escrow until the parties=rights to the escrow monies have been determined (i) by the written agreement of the parties;(ii) pursuant to an arbitration award; (iii) by order of a court of competent jurisdiction; or (iv) some other process to which the parties agree to in writing.
[b] Attorneys Fees. In any action, proceeding or arbitration to enforce any provision of this Agreement, or for damages caused by default, the prevailing party shall be entitled to reasonable attorney=s fees, costs and related expenses, such as expert witness fees and fees paid to investigators. In the event Broker hires an attorney to enforce the collection of any brokerage commission due hereunder and is successful in collecting all or any portion thereof with or without commencing a legal action or proceeding, Client agrees to pay the reasonable attorney=s fees, costs and related expenses incurred by Broker.
[c] Arbitration. All claims, disputes or other matters in question between Broker (or any cooperating broker) and Client, arising out of or relating to this Agreement shall be determined by arbitration before the American Arbitration Association in New York, New York, pursuant to its Commercial Arbitration Rules. The award rendered by the arbitrator shall be final, and judgment may be entered upon it in accordance with applicable law in any court of competent jurisdiction.
10. HOME EQUITY THEFT PREVENTION ACT
Client acknowledges that Client is aware of the Home Equity Theft Prevention Act and particularly, the provisions of Section 265 of the Real Property Law of the State of New York. In order to ensure compliance with same, Client warrants and represents to Agent that:
Client is: ______ Purchasing the property for Client’s use as a principal residence and not as an investor.
______ Purchasing the premises for investment purposes and may be deemed to be an Equity Purchaser under Section 265 of the Real Property Law.
In the event that the above circumstances change after the execution of this agreement, Client hereby covenants and agrees that Client will communicate with Agent regarding any change in Client’s status as a purchaser.
11. ADDITIONAL TERMS
[a] Upon request by Broker, Client agrees to provide a signature acknowledgement to a listing of properties shown to Client by Broker during the term of this Agreement.
[b] This document and any Addendum hereto, contains the entire agreement of the parties and supersedes all prior agreements or representations which are not expressly set forth herein between these parties.
[c] This Agreement may be modified only in writing signed and dated by both parties. Client acknowledges that Client has not relied on any statements of Broker which are not herein expressed.
TYPE OF PROPERTY: [ ]..Residential [ ]..Residential Income [ ]..Commercial [ ]..Industrial [ ]..Vacant Land
GENERAL NATURE OF PROPERTY:_________________________________________________________________________
The undersigned Client acknowledges that [he] [she] has thoroughly read and approved each of the provisions contained herein and acknowledges receipt of a copy hereof.
THIS IS A LEGAL AND BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, PLEASE CONSULT YOUR ATTORNEY
______________________________________________, Client ____________________________________________________[Broker]
Date: ______________________, 200___ By:_____________________________________________
______________________________________________, Client Date: ___________________________, 200___