The Commercial Real Estate Buyer Broker Agreement serves as the foundational document defining the professional relationship between a broker and a commercial property buyer in the United States. This agreement is essential when a buyer seeks professional representation in identifying, evaluating, and acquiring commercial real estate. It typically includes details about broker compensation, scope of services, duration of representation, and property specifications. The agreement ensures compliance with state licensing requirements and federal regulations while protecting both parties' interests throughout the transaction process.
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1. Parties: Identification of the broker and buyer, including full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of broker's services and obligations
5. Term of Agreement: Duration of the agreement and any renewal provisions
6. Compensation: Broker's fee structure and payment terms
7. Agency Relationship: Definition of the broker-client relationship and any limitations
8. Representations and Warranties: Statements of fact and guarantees made by both parties
9. Termination: Conditions and procedures for ending the agreement
10. Confidentiality: Obligations regarding confidential information
11. Governing Law: Jurisdiction and applicable laws governing the agreement
1. Dual Agency Provisions: Required if broker may represent both buyer and seller in the same transaction
2. International Provisions: FIRPTA and international transaction considerations for foreign buyers
3. Property Type Restrictions: Specific limitations on property types sought by the buyer
4. Force Majeure: Provisions for unforeseeable circumstances preventing performance
5. Assignment Rights: Terms regarding the transfer of rights under the agreement
1. Schedule A - Property Requirements: Detailed specifications of desired property characteristics and investment criteria
2. Schedule B - Fee Schedule: Detailed breakdown of broker compensation structure and payment terms
3. Appendix 1 - Agency Disclosure Form: State-mandated agency relationship disclosure documentation
4. Appendix 2 - Broker's License Information: Copies of relevant broker licenses and certifications
5. Appendix 3 - Required State Forms: Additional state-specific forms and disclosures
Relevant legal definitions
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