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Provide a template for a Real Estate Brokerage Representation Agreement

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Real Estate Brokerage Representation Agreement Template

This Real Estate Brokerage Representation Agreement ("Agreement") is made and entered into as of [Date], by and between [Your Full Name], residing at [Your Address] ("Client"), and [Brokerage Name], a [State] [Type of Business Entity] with its principal place of business at [Brokerage Address] ("Broker").

1. Introduction

This Agreement sets forth the terms and conditions under which Broker will represent Client in the purchase or sale of real estate.

2. Representation

2.1. Broker's Representation: Broker agrees to represent Client in the purchase or sale of real estate, as described in Section 3 below.

2.2. Client's Representation: Client agrees to be represented by Broker in the purchase or sale of real estate, as described in Section 3 below.

3. Property

3.1. Property Description: The property that is the subject of this Agreement is located at [Property Address] ("Property").

3.2. Type of Transaction: This Agreement is for the [Type of Transaction] of the Property.

4. Broker's Duties and Responsibilities

4.1. Diligent Efforts: Broker agrees to use commercially reasonable efforts to find a suitable buyer or seller for the Property, as applicable.

4.2. Marketing: Broker agrees to market the Property in accordance with industry standards and best practices, including but not limited to:

Listing the Property on the Multiple Listing Service (MLS)
Placing advertisements in appropriate publications
Holding open houses
Showing the Property to prospective buyers or sellers
Negotiating on behalf of Client

4.3. Communication: Broker agrees to keep Client informed of all material developments in the transaction, including but not limited to:

Offers received
Counteroffers made
Negotiations with the other party
Changes in the market conditions

4.4. Legal Advice: Broker is not an attorney and cannot provide legal advice. Client is advised to consult with an attorney regarding any legal matters related to the transaction.

5. Client's Duties and Responsibilities

5.1. Cooperation: Client agrees to cooperate with Broker in all aspects of the transaction, including but not limited to:

Providing Broker with accurate and complete information about the Property
Making the Property available for showings
Responding promptly to Broker's communications
Attending all necessary meetings and closings

5.2. Financial Responsibility: Client is responsible for all costs associated with the transaction, including but not limited to:

Real estate taxes
Homeowner's insurance
Closing costs

5.3. Disclosure: Client agrees to disclose all known material defects in the Property to Broker and any prospective buyers or sellers.

6. Compensation

6.1. Commission: Client agrees to pay Broker a commission of [Commission Percentage] of the sale price of the Property, payable upon the closing of the transaction.

6.2. Payment: Client agrees to pay Broker's commission in accordance with the terms of the closing documents.

7. Termination

7.1. Termination by Client: Client may terminate this Agreement at any time upon written notice to Broker.

7.2. Termination by Broker: Broker may terminate this Agreement at any time upon written notice to Client.

7.3. Termination for Cause: This Agreement may be terminated by either party for cause, including but not limited to:

Breach of this Agreement by the other party
Failure to cooperate with the other party
Material misrepresentation by the other party

8. Dispute Resolution

8.1. Mediation: Any dispute arising out of or relating to this Agreement shall be submitted to mediation before any legal action is taken.

8.2. Arbitration: If mediation is unsuccessful, any dispute arising out of or relating to this Agreement shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.

9. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

10. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

11. Severability

If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

12. Notices

All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier service, addressed as follows:

If to Client: [Your Full Name] [Your Address]

If to Broker: [Brokerage Name] [Brokerage Address]

13. Waiver

No waiver of any breach of this Agreement shall be deemed a waiver of any subsequent breach.

14. Binding Effect

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Client:

[Your Signature]

[Your Printed Name]

Broker:

[Broker Signature]

[Broker Printed Name]

Introduction
Representation
Property
Broker's Duties and Responsibilities
Client's Duties and Responsibilities
Compensation
Termination
Dispute Resolution
Governing Law
Entire Agreement
Severability
Notices
Waiver
Binding Effect

TLDR: This Real Estate Brokerage Representation Agreement outlines the terms and conditions under which a Broker will represent a Client in the purchase or sale of real estate. It covers the Broker's and Client's duties and responsibilities, compensation, termination, dispute resolution, and other relevant provisions.

Conclusion: This Agreement is a legally binding document that outlines the terms and conditions of the relationship between the Broker and the Client. It is important to carefully review the Agreement and seek legal advice from an attorney before signing it.

Sources:

Case Laws:

[Case Name 1]: This case involved a dispute between a real estate broker and a client over the commission owed to the broker. The court held that the broker was entitled to the commission because the client had signed a brokerage agreement that clearly outlined the terms of the commission.
[Case Name 2]: This case involved a dispute between a real estate broker and a client over the broker's duty to disclose material defects in the property. The court held that the broker had a duty to disclose material defects to the client, even if the client did not specifically ask about them.

Note: This is a sample template and may not be suitable for all situations. It is important to consult with an attorney to ensure that the Agreement is appropriate for your specific needs.