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.
Real Estate Broker Agreement Form New York: Detailed Description A real estate broker agreement form is a legally binding contract that outlines the terms and conditions between a real estate broker and their client when engaging in a real estate transaction in the state of New York. This agreement is crucial for both parties as it establishes their rights, obligations, and compensation structure throughout the process. In New York, there are several types of real estate broker agreement forms, each serving different purposes and catering to varying needs. These may include: 1. Exclusive Right to Sell Listing Agreement: This type of agreement grants the real estate broker exclusive rights to market and sell the client's property. In turn, the broker agrees to diligently and professionally represent the client's interests, actively market the property, and secure the best possible price within a specified timeframe. 2. Exclusive Agency Listing Agreement: Similar to the exclusive right to sell listing agreement, the exclusive agency listing agreement affords the broker the exclusive right to sell the property. However, in this case, the client reserves the right to sell the property on their own without any obligation to pay a commission to the broker. 3. Open Listing Agreement: An open listing agreement allows the client to enter into agreements with multiple real estate brokers simultaneously. The broker who successfully procures a buyer and completes the sale is entitled to receive a commission. However, if the client sells the property themselves, no commission is payable. 4. Net Listing Agreement: This type of agreement sets a specific net price that the seller wishes to achieve from the sale of the property. Any amount above the net price becomes the broker's commission. Net listing agreements are less common due to their potential ethical and legal concerns. In any real estate broker agreement form in New York, certain essential elements must be included. These may encompass the property description, listing price or commission structure, duration of the agreement, termination clause, duties and responsibilities of both parties, confidentiality terms, and dispute resolution procedures. It is crucial that both the real estate broker and the client carefully review and understand the contents of the agreement before signing. It is also advisable for them to seek legal advice or consult a real estate professional experienced in New York real estate laws to ensure compliance and protection of their respective interests. In summary, a real estate broker agreement form in New York is a pivotal document that facilitates a smooth and transparent relationship between the broker and their client during a real estate transaction. The type of agreement chosen depends on the client's preferences and circumstances, with options such as exclusive right to sell, exclusive agency, open listing, and net listing agreements available.
