Guide to Exclusive Buyer-Broker Agreement

1. Parties: This agreement is between you & Melanie Everett & Company. Melanie Everett is our brokerage’s sponsoring broker; she is a licensed managing broker, meaning that she manages the M&Co. office & all our agents, & has additional training under her belt. The agent who will be representing you in day-to-day matters – accompanying you to showings, writing offers, negotiating on your behalf, & more – is specified in Section 3. The agreement also specifies the Location where you are searching for a home.

2. Exclusive Right: This specifies that under this agreement, you are only able to work with your designated M&Co. agent to find properties in the Location specified above.

3. Buyer’s Designated Agent: This specifies the M&Co. agent you will work directly with. Occasionally, another agent may need to fill in for your agent (for example, if your agent has a conflict for a showing). We will always give you notice of this!

4. Term: This agreement requires a termination date to be valid, so we always set it for 6 months – we find most of our clients can find a home in this timeframe! If you still haven’t found a home after 6 months (it happens!), we will establish another representation agreement.

5. Minimum Services: This section outlines the legal duties of your agent on behalf of the sponsoring broker:

1. Present you with counteroffers on properties

2. Help you write & negotiate offers & counteroffers on properties

3. Answer questions related to offers, counteroffers, & deadlines

6. Buyer’s Designated Agent’s Duties: These sections outline your agent's additional duties. Of course, we do much more than this list—see the M&Co. Buyer Pledge for a full list of what to expect when working with our firm. 

1. Identify homes that meet your criteria

2. Arrange inspections of homes after you have submitted an offer

3. Help you understand similar sales in the area to assist with your offer price

4. Negotiate on your behalf

5. Keep confidential information private

6. Inform you of anything that may affect your decision to purchase the home

7. Limitations on Buyer’s Designated Agent’s Duties: This section adds a few parameters around the designated agent’s duties: 

1. Your agent will be working with other clients, & may even show the same property to multiple clients. Rest assured, we will never disclose your offer or intention to other clients. 

2. Your agent is not an expert on matters related to surveys or title searches – but your attorney will be! They can provide guidance on any questions that arise. Your agent is also not an inspection expert, though we strive to be as knowledgeable as possible. We rely on our inspection partners for their expertise!

3. Your agent is not responsible for the accuracy of room dimensions, lots, & more, whether listed on the MLS or not. In general, we always take these measurements with a grain of salt. 

4. Your agent is only responsible for representing you in real estate matters. 

5. Your agent will make disclosures as required by law. We are obligated to notify you of anything that may affect your purchase. 

6. Your agent may show you properties that are listed by themselves or other M&Co. agents. We’ll always alert you to properties if they fit within the bounds of your search! 

7. Your agent is not obligated to show you properties that are not listed in the MLS – this is because we may not be aware of them! However, if you do find a property that you are interested in, please let your agent know.

8. Buyer’s Duties: This section outlines what you are responsible for!

1. Working only with M&Co. to purchase a property. If you’re already working with another agent – let’s chat! 

2. Provide relevant financial information. In practice, this will mean providing your agent with a pre-approval letter before starting showings or a proof of funds statement if you intend to purchase a home with cash. 

3. Being available to tour properties that you are interested in.

4. Notify your agent if there are any off-MLS properties that you are interested in (such as a For Sale By Owner home).

5. Work with your agent as they help you find your next home!

6. Compensate your agent if needed (more on this in Section 11).

9. Fair Housing and Nondiscrimination: This section outlines the local & national fair housing laws that your agent will follow.

10. Disclaimer: This section outlines that your agent is being hired as a real estate professional only, & not as an attorney, inspector, or anything else! We always encourage hiring professionals to help you with these important jobs.

11. Compensation: This section outlines how your agent is paid. Historically, sellers have offered a compensation percentage on each home to be paid to whichever brokerage represents the buyer. M&Co.’s buyer representation fee is 2.5%. This percentage is paid to the brokerage, & a portion of it is shared with your agent. When writing an offer on your behalf, we will first find out if the seller is offering a commission upfront. If they aren’t offering a commission or the offered commission is less than 2.5%, we’ll talk through your options! We can negotiate that the seller pays through a closing cost credit, or you can pay M&Co. directly. Also – you’ll notice in this section that M&Co. does not charge any additional fees: no retainer or default fee.

12. Dual Agency: This section outlines dual agency. Dual agency is a situation where a single agent is representing both the buyer & seller of a particular property. Line 91 outlines what your agent is still responsible for, even when acting as a dual agent: treating all parties fairly, providing information about the property, sharing comparable properties to assist with price decisions, & more. Line 96 outlines what your agent cannot do when acting as a dual agent: disclose confidential information about either client, disclose the price that the client is willing to offer or accept, or recommend a price for the client to offer or accept. If you do not wish to enter into a dual agency relationship, you can decline by checking the box on line 106. If you decide to offer on a property that your agent is representing, we can appoint another agent from M&Co. to represent you, & that agent would be able to recommend a price for you to offer. We can always revisit this decision if & when it comes up.

13. Termination of Agreement: This section outlines the ways this agreement can be terminated.

14. Dispute Resolution: If there are any disputes relating to the Exclusive Buyer-Broker Agreement, the Chicago Association of Realtors will facilitate an arbitration.

15. Miscellaneous Provisions: This section contains some boilerplate legal language: 

1. If this contract has any additions, they must be signed by Melanie Everett, your designated agent, and you. 

2. This agreement also applies to any heirs or executors. 

3. Business days are Monday through Friday, excluding Federal holidays. Business hours are 8 a.m. to 6 p.m. 

4. You will hold Melanie Everett & Company and your agent harmless against any claims or litigation based on incorrect information supplied by you, money handled outside of Melanie Everett & Company, and injuries while at a property. 

5. M&Co.’s liability is limited to our compensation amount. 

6. You will comply with the Real Estate Settlement Procedures Act of 1974, which is an act that helps ensure consumers are informed of settlement costs & prohibits kickbacks in the mortgage industry.

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