Real Estate Brokerage Agreement An agreement engaging a real estate broker, specifying brokerage services, commissions, and responsibilities in real estate transactions.
1.1. Exclusive Right to Sell
The Seller hereby grants to the Broker the exclusive right to sell the Property during the term of this Agreement. The Broker agrees to use its best efforts and diligence to locate a ready, willing, and able buyer for the Property upon the terms and conditions set forth herein.
2.1. Listing and Advertising
The Broker shall provide the following services to the Seller in connection with the sale of the Property: (a) listing the Property on the broker's multiple listing service database, (b) advertising the Property on any other appropriate platforms, (c) conducting open houses and private showings, (d) preparing marketing materials for the Property, and (e) negotiating all offers received in connection with the Property on behalf of the Seller.
2.2. Seller's Representative
The Broker shall represent the Seller's interests in all negotiations with prospective buyers, and the Broker shall act as the Seller's agent for the purpose of the sale of the Property. The Broker shall also act as the Seller's facilitator in the transaction and shall assist the Seller with all aspects of the transaction, including, but not limited to: (1) marketing and advertising, (2) negotiation, (3) execution of agreements with prospective buyers, and (4) coordinating and attending closing activities.
3.1. Commission Rate
As compensation for the Broker's services, the Seller agrees to pay the Broker a commission equal to [Percentage, e.g., 6%] of the gross sales price of the Property (the "Commission"), which shall be paid at the time of closing on the sale of the Property.
3.2. No Commission if No Sale
Should the Broker fail to secure a sale of the Property during the term of this Agreement, no Commission shall be payable or due to the Broker.
4.1. Term
This Agreement shall become effective as of the Effective Date and shall continue in full force and effect for a period of [Number of Months, e.g., 6] months unless sooner terminated according to the provisions of Section 4.2 below.
4.2. Termination
Either party may terminate this Agreement without cause upon 30 days' written notice to the other party. If the Seller terminates the Agreement without cause, the Broker shall be entitled to a pro-rata portion of the Commission based on the percentage of the term of this Agreement that has expired.
Both parties agree to indemnify and hold each other harmless from and against any and all claims, losses, damages, liabilities, or expenses, including, without limitation, reasonable attorneys' fees, arising from any third party claim in connection with the activities performed by either party under this Agreement, except to the extent such loss, damage, liability, or expense is caused by the gross negligence or willful misconduct of the other party.
This Agreement shall be governed by and construed in accordance with the laws of the United States and the state in which the Property is located, without regard to conflicts of law principles. Any dispute arising under or out of this Agreement shall be resolved through good faith negotiations between the parties. If the parties are unable to resolve such dispute within 30 days of the commencement of such negotiations, the dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.
This Agreement, together with any exhibit or other document referred to herein, constitutes the entire understanding of the parties relating to the subject matter of this Agreement, and supersedes all prior and contemporaneous negotiations, understandings, and agreements, whether oral or written, between the parties relating to the subject matter of this Agreement. This Agreement may not be amended or modified in any respect, except by a written instrument executed by the parties hereto, after the date hereof.
This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. The parties agree that electronic signatures may be used in the execution of this Agreement.
In this Real Estate Brokerage Agreement, you will see the following sections:
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