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.
Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate is a legal agreement used in real estate transactions in the state of Virginia. This addendum provides an option for the buyer or seller to include a brokerage commission buyout and price addendum when signing a contract to buy or sell real estate. In certain situations, either the buyer or seller may wish to engage in a buyout agreement with the real estate broker, where they agree to pay the broker directly for their services, circumventing the need for the broker to negotiate their commission with the other party involved in the transaction. The Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate allows parties to specify the terms and conditions of this buyout agreement. It outlines the amount or percentage of the commission that the buyer or seller will assume responsibility for paying directly to the broker. Different types of Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate may include variations based on the specific circumstances of the real estate transaction. For example: 1. Buyer Buyout Agreement: In this scenario, the buyer negotiates a buyout agreement with the real estate broker and agrees to directly compensate them for their services, rather than expecting the seller to cover the brokerage commission. 2. Seller Buyout Agreement: Conversely, the seller may opt for a buyout agreement with the real estate broker, taking responsibility for paying the commission directly instead of relying on the buyer to do so. These variations allow flexibility in the distribution of broker commissions and cater to different preferences and requirements of the buyer and seller involved in the real estate transaction. It is crucial to thoroughly review and understand the terms and conditions stated in the Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate before signing. Consulting a real estate attorney or professional can ensure the agreement aligns with legal requirements and protects the interests of all parties involved.
