An Agreement Between Builder And Broker is essential when property developers seek professional representation for marketing and selling their newly constructed properties. This document, governed by U.S. federal and state real estate laws, establishes the framework for the business relationship, detailing commission structures, marketing responsibilities, exclusivity terms, and performance expectations. It's particularly important for new development projects and helps prevent misunderstandings while ensuring compliance with relevant regulations such as RESPA and state-specific real estate laws.
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1. Parties: Identifies the builder and broker, including full legal names, addresses, and business details
2. Background: States the context of the agreement, including the builder's development projects and broker's qualifications
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the broker's responsibilities and services to be provided
5. Term and Termination: Specifies duration of agreement and conditions for termination
6. Compensation: Details commission structure and payment terms
7. Representations and Warranties: States parties' assurances regarding licenses, capabilities, and compliance
8. Governing Law: Specifies applicable jurisdiction and dispute resolution
1. Marketing Requirements: Details specific marketing obligations and strategies required by the builder
2. Exclusivity Provisions: Terms defining exclusive representation rights and limitations
3. Performance Metrics: Specific sales targets, requirements, and measurement criteria
4. Technology Requirements: Specific systems or platforms to be used in the course of representation
1. Schedule A - Property Details: List of properties or developments covered by agreement
2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculations
3. Schedule C - Marketing Materials: Approved marketing content and guidelines
4. Schedule D - Required Disclosures: State-specific required disclosures and forms
5. Schedule E - Performance Metrics: Detailed performance requirements and measurement criteria
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