Exclusivity Agreement House Buying

The parties may wish to agree on limited circumstances in which the deposit will be refunded, such as for example. B: a downward valuation; a major investigation error or set of survey errors of some financial value; or any problem that would mean that as lawyers, we could not confirm that the property has a quality and marketable title (and that cannot be solved at the seller`s expense with insurance or any other purpose). This could therefore be better described by agents when setting the terms as a bond or exclusive royalty rather than a non-refundable down payment or payment, as it is clearly non-refundable unless the buyer simply changes his mind about the purchase for no good reason! Housing developers use exclusivity agreements to grant buyers a fixed exclusivity period for the exchange of contracts. In return, the buyer pays a non-refundable deposit that may expire in case of non-compliance with the deadline. The buyer may think that he can spend funds on surveys, research, bank evaluations, etc., knowing (theoretically) that the seller will sell to him. The duration of a buyer`s brokerage contract is negotiable. Many agents ask for a 90-day commitment. However, you are still free to request a duration of 24 hours, 7 days, or even 30 days. That`s all you can negotiate. We can also contribute to the development of the exclusivity agreement itself, to ensure that both parties can fulfil their obligations of the same descent to ensure smooth progress.

Please contact our real estate team for more information. What the parties can then conclude at the beginning is an option agreement that allows the buyer to inform the seller in which the seller is sold at the pre-agreed price. The option has an option fee (actually the exclusivity fee) that is transferred to the seller or held by its lawyers when the option is traded…