The Transaction Broker Agreement emerged as a solution to the complexities of dual agency in real estate transactions across the United States. This document is essential when parties wish to engage a real estate professional as a neutral facilitator rather than as a fiduciary agent. The agreement clearly defines the transaction broker's role, responsibilities, and limitations, ensuring compliance with state-specific real estate laws and federal regulations. It's particularly useful in situations where the broker may work with both buyers and sellers, providing a clear framework for maintaining neutrality while facilitating the transaction effectively.
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1. Parties: Identification of the broker and client(s)
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of broker's services and responsibilities
5. Term and Termination: Duration of agreement and termination conditions
6. Compensation: Fee structure and payment terms
7. Representations and Warranties: Statements of fact by both parties
8. Disclaimer of Fiduciary Duties: Clear statement of transaction broker's neutral role
1. Property Details: Specific property information if agreement relates to particular property
2. Marketing Services: Details of marketing efforts to be undertaken
3. Additional Services: Any supplementary services offered beyond standard transaction brokerage
1. Fee Schedule: Detailed breakdown of all fees and commissions
2. Service Level Agreement: Detailed description of service standards and response times
3. State-Required Disclosures: Mandatory state-specific disclosure forms
4. Property Information Sheet: Details of property if agreement is property-specific
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