When choosing a real estate broker, you must take into account how long you would like the contract to last. The typical contract is six months, but some agents will negotiate a shorter contract. If you want to sell your home for a longer period, it would be wise to sign an agreement that has a definite end date. Another important consideration is the amount of notice you need to give in order to terminate the contract.
The contract should clearly state the fee you will pay upfront and any milestone payments. The upfront fee is usually non-refundable. However, some brokers will credit the fee against commission earned. You should also ask about exclusions in the contract. The contract should also specify the venue for the transaction and describe the services provided. It should also state that you can terminate the contract with 30 days’ notice.
A contract should be no longer than three pages. Any longer than that is too lengthy. Moreover, it could indicate a broker with poor judgment in choosing clients. Hence, you should be wary of long-term contracts with an agency. If you’re uncertain about the terms, try signing a shorter contract first.
If you’re not happy with the terms of a broker contract, you can terminate it by giving your notice in writing to the broker. Generally, brokers don’t mind this, so long as both parties are happy. It is even better if you can end the agreement amicably.
The most common type of buyer-broker contract is an exclusive right-to-represent contract. This contract spells out the obligations of the agent and the buyer. In most cases, the buyer pays the agent’s commission. However, this contract isn’t a binding one. The buyer can also choose another agent if he doesn’t want to work with the agent anymore. Alternatively, a dual-agency contract lets the buyer hire a different agent and the agent isn’t required to release the client from the contract.
Once the buyer agrees to the contract, it’s important to understand what the terms mean. For example, the buyer can opt to buy the house through another agent and avoid paying the commission. On the other hand, if the buyer isn’t happy with the terms, he can choose another broker.
In addition to this, the buyer-broker agreement should include details on the commission structure, the length of the listing, and how the agent will be compensated. The contract may be for as long as six months or as short as a month. Agents rarely like taking a listing for less than a month, as they won’t have enough time to market the house.