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Buyer Broker Commission Agreement for the United States

Buyer Broker Commission Agreement Template for United States

A Buyer Broker Commission Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which a real estate broker will represent a buyer in property transactions. The agreement details the scope of services provided by the broker, commission structure, duration of representation, and mutual obligations of both parties. It ensures compliance with federal and state real estate regulations while protecting the interests of both the broker and the buyer throughout the property search and acquisition process. The document typically includes specific provisions for commission payment, property requirements, and the exclusive or non-exclusive nature of the representation.

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What is a Buyer Broker Commission Agreement?

The Buyer Broker Commission Agreement is a fundamental document in U.S. real estate transactions that formalizes the professional relationship between a real estate broker and a property buyer. This agreement is typically used when a buyer seeks professional representation in finding and purchasing property, ensuring their interests are protected throughout the transaction process. The document outlines crucial elements including the broker's duties, commission structure, term of representation, and the specific requirements for the desired property. It complies with federal regulations such as RESPA and state-specific real estate laws, while providing clear guidelines for both parties' obligations and rights. The agreement becomes particularly important in establishing the broker's right to compensation and defining the scope of services they will provide to the buyer.

What sections should be included in a Buyer Broker Commission Agreement?

1. Parties: Identifies the broker/brokerage firm and the buyer(s) with their complete legal names and addresses

2. Background: Establishes the context of the agreement, including the buyer's intention to purchase property and the broker's qualification to provide services

3. Definitions: Defines key terms used throughout the agreement, including 'Property Requirements,' 'Commission,' 'Closing,' and 'Exclusive Right'

4. Appointment and Authorization: Establishes the broker's appointment and the nature of the representation (exclusive or non-exclusive)

5. Term of Agreement: Specifies the duration of the agreement, including start and end dates

6. Broker's Services and Obligations: Details the services the broker will provide to assist in finding and purchasing property

7. Commission Structure: Specifies the commission rate, calculation method, and payment terms

8. Buyer's Obligations: Outlines the buyer's responsibilities, including providing accurate information and working exclusively with the broker

9. Property Requirements: Describes the type, location, and price range of properties the buyer is interested in

10. Termination: Specifies conditions and procedures for ending the agreement

11. Governing Law: States that the agreement is governed by applicable state laws

12. Signatures: Space for dated signatures of all parties

What sections are optional to include in a Buyer Broker Commission Agreement?

1. Dual Agency Consent: Required when the broker may represent both buyer and seller in a transaction

2. Protection Period: Establishes a period after agreement termination during which the broker may still be entitled to commission

3. Dispute Resolution: Specifies mediation or arbitration procedures for resolving disagreements

4. Team Members: Lists additional broker team members who may assist with the buyer's search

5. Fair Housing Compliance: Explicit statement of compliance with fair housing laws, particularly important in areas with strict requirements

6. Commission Exceptions: Specifies any properties or situations where different commission terms apply

7. Virtual Services: Details provisions for virtual showings and electronic communications, relevant in modern transactions

What schedules should be included in a Buyer Broker Commission Agreement?

1. Schedule A - Property Requirements: Detailed specifications of the buyer's property requirements including location, size, price range, and essential features

2. Schedule B - Commission Schedule: Detailed breakdown of commission rates and calculations for different property types or price ranges

3. Schedule C - Broker's Services: Comprehensive list of specific services the broker will provide

4. Appendix 1 - Agency Disclosure Form: State-mandated form explaining agency relationships in real estate transactions

5. Appendix 2 - Fair Housing Information: Required fair housing notices and information

6. Appendix 3 - Client Information Form: Buyer's detailed contact information and preferences

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions






























Clauses



























Relevant Industries

Real Estate

Financial Services

Legal Services

Property Development

Property Management

Real Estate Investment

Professional Services

Relevant Teams

Legal

Real Estate

Compliance

Operations

Business Development

Contract Administration

Property Acquisition

Investment

Transaction Processing

Relevant Roles

Real Estate Broker

Real Estate Agent

Property Buyer

Real Estate Attorney

Legal Counsel

Compliance Officer

Real Estate Transaction Coordinator

Contract Administrator

Real Estate Manager

Property Acquisition Manager

Real Estate Investment Manager

Business Development Manager

Real Estate Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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