Some state real estate commissions require the use of a buyout addendum when a real estate broker enters into a contract to purchase a property: i) concurrent with the listing of such property; ii) as an inducement or to facilitate the property owner's purchase of another property; or iii) continues to market that property on behalf of the owner under an existing listing contract.
It is generally recommended that a real estate broker use such an addendum when he/she continues to market the property and is only agreeing to buy it to make the deal. If a licensee actually wants to own the property, using the addendum does not solve the conflict of interest.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Michigan Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate is a legal document used in real estate transactions in the state of Michigan. This addendum specifies the terms and conditions related to a buyout of the broker's commission and any adjustments to the purchase price of the property. This addendum is typically used when the buyer is represented by a real estate broker and the seller has agreed to compensate the broker's commission from the proceeds of the sale. However, in some cases, the buyer may choose to buy out the broker's commission separately. The addendum outlines the process and details of this agreement. The Michigan Real Estate Broker Buyout and Price Addendum may include the following key elements: 1. Buyout Agreement: This section details the agreed-upon amount to be paid by the buyer directly to the broker to compensate for the commission owed. It specifies the terms and conditions for payment, including the due date and any applicable interest or late fees. 2. Purchase Price Adjustment: This part of the addendum addresses any adjustments to the purchase price based on the buyout of the broker's commission. It outlines how the adjustment will be calculated and the method used to deduct the buyout amount from the original purchase price. 3. Timeframe: The addendum may include a timeframe for completing the buyout and adjustments. It may also specify the consequences of not meeting the agreed-upon timeline. 4. Dispute Resolution: In the event of a disagreement or dispute regarding the buyout or price adjustment, this section outlines the methods for dispute resolution, such as mediation or arbitration. It is important to note that there may be various types and variations of the Michigan Real Estate Broker Buyout and Price Addendum, depending on the specific circumstances and negotiation between the parties involved. These variations may include additional clauses, specific terms, or alternative methods of buyout or adjustment. In conclusion, the Michigan Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate is a crucial document that safeguards the interests of both buyer and broker in real estate transactions. It sets clear guidelines for compensating the broker's commission and adjusting the purchase price, ensuring a fair and transparent agreement between the involved parties.
