Points To Be Covered In Buyer Brokerage Agreements
Buyer Brokerage agreements can be of any type and are generally drawn up by real estate brokers in order to ensure the smooth transfer of money and property as well as brokerage. Buyer brokerage agreements are especially popular in the United States because a real estate broker cannot legally claim the commission, unless the buyer and the broker conclude written and signed brokerage agreements. The major components of buyer brokerage agreements are discussed here. It may be noted that this introduction is not an exhaustive one and more clauses as well as sections may be added as needed as per exigency.
Buyer brokerage agreements must start with a mention of both the parties involved, namely the broker and the buyer. This must be followed by a short description of the property that the buyer wants to purchase. Buyer brokerage agreements must then cover the terms and conditions for agreement with both the start date and the end date.
After this, buyer brokerage agreements must cover details about the services to be provided as well as the payments to be made. Services stipulated in buyer brokerage agreements must be those services that the broker will offer to the buyer. Services may include the purchase or lease of proprty, and the location of such property in so far as it fulfills the needs of the buyer.
Buyer brokerage agreements should contain clauses that make the real estate agent liable to use his knowledge and skills to deal in real estate, provide assistance to the buyer in the process of purchase, and negotiate on the behalf of the client. Similarly, buyer brokerage agreements must also carry clauses that make the buyer liable to furnish the broker with all details, so as to establish the buyers credibility as well as to pay fees (commission) as stipulated in the agreement and as directed by the law of the land.
Buyer brokerage agreements must cover therein the mode of payment of commission to the broker as well as the time period in which the brokerage has to be paid.
The next clause that buyer brokerage agreements must carry is the one in which cooperative commissions are specified. These commissions are ones n which the seller or the listing broker puts up something as a commission for a broker. It is a good business practice to give cooperative commission based discounts to buyers.
Buyer brokerage agreements must also cover a disclaimer clause to the effect that the real estate agent is just a buyer's agent and will not provide any other professional service to the buyer. A fair-deal clause may also be covered in buyer brokerage agreements after this, so that the impartiality of the broker is not in doubt.
Finally, space must be provided for signatures and amendments, which may be made later to buyer brokerage agreements.