Exclusive Client Agency Contract


By mutual agreement, the prospective Client:

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(hereinafter called the "Client") enters into this contract with HomeLife Jon Moss (hereinafter called "HJM"), and authorizes them to act as their EXCLUSIVE AGENT, to purchase a desired property. 

I. TERMS OF AGREEMENT

A. Broker Duties

• HJM shall represent the Client and act in their best interest at all times.

• HJM shall negotiate for the best price and terms for the Client.

• HJM shall conduct due diligence, market analysis, and research on the property, as needed using appropriate tools available to HJM including MLS, Internet etc.

• HJM shall offer the Client undivided loyalty, utmost care, full disclosure, obedience to lawful instruction, confidentiality, and accountability.

• Working with the Client, HJM shall make all reasonable efforts to:

• Locate properties which meet Client criteria;

• Schedule and view properties with Client;

• Counsel the Client on the estimated market value of the properties;

• Negotiate terms and conditions of the offer to purchase which are acceptable to the Client, and assist in the completion of the transaction.

• Provide information to best educate the Client on aspects of property searches, property pricing, financing, etc., including relevant Web Sites on the Internet, current market conditions publications, HJM Seminars and others.

B. Client Duties

• The Client agrees to be pre-qualified by a mortgage lender within 7 days of entering into this contract.

• The Client agrees to provide a mortgage lender with personal and financial information, which shall be treated confidentially, to demonstrate the Client’s ability to purchase the property described above.

• The Client agrees to refer all inquiries from real estate agents, prospective sellers, or any other source, to HJM.

• The Client agrees to work with HJM during all stages of negotiation.

• The Client agrees to have HJM schedule all private showings of properties, regardless of how those properties were discovered, including properties found by the Client. A FAILURE TO FOLLOW THIS PROCEDURE MAY RESULT IN A LOSS OF RETAINER AND/OR REBATE.

• The Client shall inform all other licensed real estate agents, particularly seller agents at open houses, that the Client is represented exclusively by HomeLife Jon Moss. HJM Business Cards shall be made available to distribute at Open Houses and to seller’s agents.

II. EXCLUSIVITY

The Client and HJM shall work together to acquire the desired property. This agreement is mutually binding and shall exclude all other licensed real estate agents. However, when appropriate, HJM may add the services of other Professionals to the home buying team by mutual consent. HJM encourages and supports any Client efforts to buy properties directly from sellers, i.e., For Sale By Owner (FSBO) properties.

III. COMPENSATION

A. Authorization to request compensation

The Client shall authorize HJM to request payment of the buyer agent fee (typically 2 - 3.5% of sale price) in the purchase price negotiated with the seller. HJM shall insert the appropriate contingencies into the Client’s offer to insure that HJM shall receive its compensation out of the proceeds of the real estate transaction. The Payment Option section of the Contract chosen by the Client shall determine the fee amount. Each Payment Option entitles Client to varying degrees of access to HJM’s professional services.

B. Payment Options

The Client must choose one of the following payment option plans

Option 1:  Hourly Fee for Service

• $100/hour for HJM Professional Consultation

• $25/hour for HJM computer use by Client

Any Buyer Agent fee provided by seller will be rebated to Client.

An initial $500 retainer is payable to HJM in advance upon Client's acceptance of this contract. Professional time is billed in 15-minute increments. Additional installments of $500 will be billed periodically in advance of service and will be due upon receipt. Professional Consultation includes but is not limited to: telephone discussions, faxes, MLS searches, Internet searches, HJM licensed software use, market analysis and other due diligence efforts by HJM.

Since For Sale By Owner properties may not offer a Buyer Agent fee, there will be no rebate to Client at closing.

Option 2:  Fixed Fee

A. Fast Track/Internet Track:

• $1,000 Retainer with $6,000 cap on HJM fee with rebate to Client at closing

• Client will receive a rebate of any additional buyer agent commission at the time of the closing.

• Maximum professional time spent by HJM agent: 20 hours

B. Typical Search:

• $500 Retainer with $5,000 cap on HJM fee with rebate to Client at closing

• Client will receive a rebate of any additional buyer agent commission at the time of the closing.

• Maximum professional time spent by HJM agent: 50 hours

HJM's fixed fee is equal to the cap amount. Initial retainer is non-refundable and is counted against cap limit at time of closing. Professional time is billed at $100 per hour, payable at closing, after maximum time limit is reached. Any additional hours are counted against the Client's rebate. In the event the hourly fees exhaust the Client rebate, then added hours would be billed and payable upon delivery of services.

Since For Sale By Owner properties may not offer a Buyer Agent fee, there will be no rebate to Client at closing. There is also $2,000 minimum fee for the first 20 hours service with added time billed at $100 per hour.

Option 3: Traditional Straight Commission

• A commission of 2% - 3.5% of sales price is paid to HJM at the sale closing

• No Retainer is required

• When a For Sale By Owner property seller offers a 2 - 3.5% Buyer Agent fee, the full amount will be retained by HJM. Otherwise there is a $2,000 minimum fee for the first 20 hours service with added time billed at $100 per hour.

Payment Option Chosen: _________ Client Initials: _________

C. Residual Contract Time Based on Property Purchased

Occasionally, a Client will attempt to avoid compensating HJM and/or its Agents by purchasing or acquiring an interest in properties after their contractual relationship with HJM expires. To protect itself against this practice, the Client agrees to pay HJM the appropriate fee as determined by the Option chosen above, if:

1. The Client or Client’s nominee and/or agent acquires the property, rights to the property or any other legal interest in that property, within 60 days after this contract with HJM expires, and;

2. The Client received information about that property from HJM, its Agents, Venture Partners, or from others associated, in any way, with HJM.

D. Client default

If the Client is able to purchase a property and has signed a Purchase and Sales Agreement and chooses not to, even though all terms of the purchase contract have been satisfied, the Client will be required to pay HJM the agreed upon fee.

IV. TERMINATION RIGHTS

The Client or HJM may terminate this agreement in writing at any time up to 10 days from the date of the signing this contract for any reason. If the agreement is terminated during this period, all retainers shall be refunded to the Client. After the 10th day, either party may terminate the agreement in writing at any time during the balance of the contract for any reason, but shall not be receive a return of any retainers.

V. SERVICE LIMITATIONS

HJM services shall not include Commercial/Industrial Developments as these require new terms of service and fee schedules.

VI. INDEMNIFICATION OF HJM

Except for clearly foreseeable and negligent acts by HJM, and its Agents, or the failure of HJM or its Agents to meet its duties detailed in Section 1, A of this agreement, the Client agrees to hold HJM harmless for injuries suffered, monetary or otherwise, from the purchase of real property using HJM’s real estate purchasing services.

VII. OUTSIDE REVIEW

The Client and HJM understand that this is legally binding agreement. For the Clients convenience and peace of mind, HJM urges Client to review this document with their attorney.

VIII. TERM OF CONTRACT

The term of this agreement shall commence on _____________ and terminate on _____________.

Signatures

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Client                     Date

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HJM Buyer Agent      Date