For Sale By Owner/builder Commission Agreement Template


For Sale by Owner/Builder Commission Agreement
THIS AGREEMENT is entered into by and between _________________________________________________ as "Owner," and
_________________________________________________________________ referred to as the "Broker."
A. Owner is the owner of record of property commonly known as ____________________________________________(the
B. Owner is endeavoring to sell the Property without the assistance of licensed real estate agents. However, Broker, has a client
_______________________________________________________________________hereinafter referred to as “Broker’s Client”,
to whom the Broker would like to show the property.
Accordingly, Owner and Broker agree as follows:
1. THE SALES PRICE quoted to Broker’s Client shall be $________________on the following terms __________________ along
with personal property (if any) that integrally belongs to or is part of the real estate as listed in the offer to purchase.
2. POSSESSION will be given ____________________________________________________________________________
If the Owner sells the Property to Broker’s Client, Owner agrees to pay a Brokerage Fee of
$_______________________or ______% of the final gross sales price plus applicable sales tax.
a. If Owner enters into a contract to sell the Property to Brokers Client at any time within _____months of Owner’s signing this
agreement, Owner shall pay the commission to the Broker at closing.
b. In the event the commission is expressed as a percentage, it shall be calculated on the total gross sales price of the real
estate including any personal property transferred. Owner authorizes Broker to pay Broker from Owner’s Proceeds of sale.
4. EARNEST MONEY: Broker may accept earnest money deposits; hold earnest money checks until both Broker’s Client and
Owner have executed a sales agreement; deposit same in Broker’s trust account; hold same until the
transaction has been
consummated or finally otherwise terminated; and require written releases from all parties before releasing trust funds.
5. TITLE: Owner agrees to convey the property by _________________Warranty Deed and provide an abstract continued to date
of sale, showing good and merchantable title subject to easements and restrictions of record.
6. HAZARDOUS MATERIALS AND MATERIAL ADVERSE FACTS: Owner represents that there are no known hazardous
materials or contaminates of any kind, nor any known material adverse fact on or about the property unless disclosed on the seller’s
property disclosure or as part of this agreement or as disclosed on the Seller’s Property Disclosure Statement.
7. NOTICE AND CERTIFICATION of Taxpayers Identification Number. The tax Reform Act of l986 and the rules promulgated
by the IRS requires the Seller to report the sale of properties. ID # is required below.
8. BUYER AGENCY. The owner acknowledges that the Broker is the agent representing the Buyer and also acknowledges the
receipt of Agency Policy and Disclosure Form disclosing that the Brokerage does not represent the Seller, but does represent the
Buyer in the transaction. In representing the Buyer, it is the duty of the Broker to disclose all information regarding this transaction
that is given to the Broker by the Owner be disclosed to the Broker’s Client. For example, if the Owner discloses to the Broker that
the Owner is compelled by outside circumstances to sell by a certain date, or that Owner is prepared to lower the price, the Broker
would be required to disclose this information to Broker’s Client. Pleas keep this in mind when communicating with the Broker. By
signing this agreement, Owner acknowledges that this agency relationship has been previously disclosed to the Owner, either
orally or in writing.
This Agreement shall be binding upon the heirs, assigns, executors, and administrators of the parties, and no agreement not noted
herein, shall be binding upon the parties. The Property is offered within the HUD guidelines. This is a legally binding contract. If
not understood, consult with the lawyer of your choice. Receipt of a copy of this agreement is acknowledged by the Owner.
Executed this ________day of _______________________, 20___ at ______________AM/PM.
Owner (1) Signature
Owner (2) Signature
Owner (1) Taxpayer Identification Number
Owner (2) Taxpayer Identification Number
By: (Authorized Agent)
By: (Principal Broker)
Company: _________________________________________________________________________________________________


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