This is one of two agreements that you as a potential buyer of property will be required to sign prior to writing an offer for a property so that I can provide you with adequate representation before sellers and their agents. The earlier this is done, the better, because it determine what kind of relationship we will have.
I'll be happy to answer any questions that you may have about this phase of the process. You can review and print the representation agreement (you can refer to the explanations below) and then fax it to my office at (301-932-8475). Remember that if someone has their property listed in the MLS for sale through a Realtor, they have an agent representing their interests ... Shouldn't You?
Maryland real estate law states that I must have a signed representation agreement (either the Exclusive Right to Represent the Buyer" agreement discussed here or the "Non-Binding (Limited) Buyer Representation" agreement prior to beginning a serious earch for properties or writing an offer on a property in the State of Maryland. Below is a brief explanation of each section of the Exclusive Right to Represent the Buyer Agreement. If you print the Agreement, you can review it and follow the explanations below as they correspond to each paragraph. When we meet to discuss the purchase of your new home, we will discuss this form in detail so that I will become your Buyer's Agent and give you all of the benefits of full Buyer Representation. This will put you on equal terms with the sellers of most properties, unless they are trying to sell their property on their own. If you want more specific information on the "Non-Binding (Limited) Buyer Representation" agreement, I'll be glad to discuss that with you, too.
1. Term: I will usually request that the agreement expire at least 90 days from the date of execution, although the terms may be longer, depending on what you plan to buy and on your timeframe for actually completing the transaction. Sometimes (particularly when a client is searching for waterfront properties, new construction, or raw land) it is necessary to have a much longer agreement. Some of these transactions can take between 9 and 12 months from start to finish. 2. Retainer Fee: Long and Foster Real Estate, Inc. does not require a retainer fee at this time for services that we perform for buyers. Normally, a retainer fee would be requested to cover the costs associated with showing properties to potential buyers when there is uncertainty about the ability of the potential buyer to actually complete a transaction. This is why so many agents will not show properties to buyers who have not signed this agreement and who have not been pre-qualified for a mortgage or who refuse to do so prior to beginning the search for properties. If you want to look at properties without doing your part to ensure that you will be able to purchase any of the properties that we will visit, then we can discuss the merits of showing properties under a retainer fee agreement. 3. Broker Duties: Outlines the services that I, as a Realtor affiliated with Long & Foster Real Estate, Inc. will provide for you. This does not include financial advice or legal advice and other specific things that we will discuss in greater detail.. 4. Ministerial Acts: There are some tasks that I may provide that appear to benefit the seller of a property that in no way compromise my ability to represent you as the buyer. The key is the confidentiality that I owe to Buyers that I represent. 5. Buyer's Duties: You agree to work exclusively with me to find a property and, in return, pay any applicable fees and commissions (outlined in greater detail under paragraph 7), and supply information that is necessary for me to complete the transaction. That includes the required pre-qualification for financing or proof of funds for a cash purchase. 6. Purpose: We will outline in general terms the type of property that you wish to purchase. 7. Compensation: You agree to pay compensation to Long & Foster Real Estate, Inc., in the amount of 3% of the purchase price of the property or the agent co-op fee offered by the seller, whichever is higher (minus any retainer fee that we agree to). In addition to the commission, you agree to pay at settlement an Administrative Fee of $295.00 to Long & Foster Real Estate, Inc. As your Buyer's Agent, I receive a commission ONLY when the purchase is completed ... unless we determine that a retainer fee is appropriate for your circumstances. Naturally, I want to make sure that I'm not wasting my time. You should know that some companies and/or agents do not value the services that they provide to their clients and discount their commissions. The bad part about that is that it could end up costing you as the buyer a little extra money. For example, if you buy a $100,000 property that has a 3% co-op, then you pay no commission to Long & Foster. On the other hand, if that property has a 2.5% co-op fee, then you would be responsible for paying 0.5% of the commission, or $500.00. I am forbidden by law from discussing commissions that other real estate companies charge and cannot negotate with other Realtors regarding the commissions that they are offering. It's always a good idea to remember when thinking about discount services, that you get what you pay for! Sometimes getting something at a discount is NOT a good deal. The provision also applies if you were to enter into a contract within 90 days after expiration of the agreement on a property that I showed to you during the term of the agreement. 8. Cancellation: You or I may cancel this agreement with 2 or 3 days written notice. 9. Intra-Company Agent Representation: If you wish to visit and possibly purchase a property listed by Long & Foster, then you must concent to Intra-Company Agent Representation (also known as Dual Agency). 10. Attorney's Fees: Long & Foster will not be responsible for attorney's fees and legal expenses if it is found that Long & Foster was not at fault. 11. Other Provisions: Either you or I can add provisions to the agreement. 12. Disclamer: Long and Foster Real Estate, Inc. only provides real estate services and cannot act as attorney, tax advisor, lender, or other services related to real estate purchases. 13. Equal Opportunity: Long & Foster Real Estate, Inc. is an Equal Housing Opportunity company and abides by all of the Federal, State and Local Fair Housing laws. 14. Miscellaneous: The agreement, containing 3 pages, is the entire agreement and can only be modified in writing. You will need to sign the agreement and provide your mailing address and telephone numbers. It would also be helpful to provide an e-mail address because we will be doing quite a bit of communicating through e-mail.
Feel free to Contact Me if you are interested in purchasing property in Maryland, especially in the Counties where I specialize. I will be happy to discuss the particulars of this agreement and all other aspects of your real estate purchase with you.
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