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Agreement Between Builder And Broker for the United Kingdom

Agreement Between Builder And Broker Template for United States

A legally binding agreement used in the United States that establishes the professional relationship between a property developer/builder and a real estate broker. The document outlines the terms and conditions for the marketing and sale of newly constructed properties, including commission structures, responsibilities, exclusivity rights, and performance expectations. It complies with federal and state-specific real estate laws, including RESPA and state broker regulations.

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Agreement Between Builder And Broker

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What is a Agreement Between Builder And Broker?

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.

What sections should be included in a Agreement Between Builder And Broker?

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

What sections are optional to include in a Agreement Between Builder And Broker?

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

What schedules should be included in a Agreement Between Builder And Broker?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Broker Agreement

Cost

Free to use
Clauses





























Industries

RESPA: Real Estate Settlement Procedures Act - Federal law governing real estate transactions and settlement processes, including rules about kickbacks and referral fees between builders and brokers

TILA: Truth in Lending Act - Federal regulation requiring disclosure of credit terms and financial arrangements in real estate transactions

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on race, color, religion, sex, national origin, disability, or familial status

Interstate Land Sales Full Disclosure Act: Federal law requiring full disclosure of information to potential buyers in land sales, affecting how builders and brokers must handle certain property transactions

Antitrust Laws: Sherman Act and Clayton Act provisions governing competition and prohibiting anti-competitive practices in real estate arrangements between builders and brokers

State Real Estate Licensing Laws: State-specific regulations governing the licensing and conduct of real estate professionals, including brokers working with builders

State Contractor Laws: State-specific regulations governing construction contractors, including licensing requirements and operational standards for builders

NAR Guidelines: National Association of REALTORSยฎ professional standards and ethical guidelines governing broker conduct in real estate transactions

Building Codes: Local and state construction requirements and standards that builders must comply with and brokers should be aware of

Statute of Frauds: State law requirements mandating certain contracts, including real estate agreements, to be in writing to be enforceable

Consumer Protection Laws: State and federal regulations protecting consumer interests in real estate transactions, including disclosure requirements and advertising standards

Insurance Requirements: State-specific insurance obligations for both builders and brokers, including liability coverage and construction bonds

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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