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A contracts law professor named Tanya Monestier has released her own sample buyer representation agreement in an effort to push the real estate industry towards creating fairer forms for buyers. Her commentary alongside the sample contract addresses the need for transparency and consumer protection in real estate transactions.
In her sample contract, Monestier emphasizes the importance of clear and understandable language to benefit buyers and sellers alike. She acknowledges the need for state-specific modifications and urges industry stakeholders to prioritize consumer fairness in contract creation.
Monestier’s sample contract, which is 2.5 pages long and avoids legal jargon, aims to provide a practical starting point for creating new forms or modifying existing ones. By focusing on clarity and simplicity, she hopes to inspire positive change in the real estate contract landscape.
Her form is designed for a general audience of prospective homebuyers in the U.S. with some high school education, aligning with the Realtor Code of Ethics’ requirement for clear and understandable language in transaction forms.
Monestier’s ultimate goal is to promote fair and comprehensible contracts that benefit all parties involved in real estate transactions. By challenging industry norms and advocating for consumer protection, she seeks to elevate the standards of contract creation in the real estate sector.
Negotiations regarding commissions are left up to buyers and brokers, as stated by Monestier. The buyer is responsible for paying the broker a percentage of the purchase price or a flat fee as outlined in the agreement. While some disagree with this payment model, Monestier believes it is the simplest option. The form also explains how seller compensation can cover buyer broker fees. Despite some concerns about the legality of pre-set compensation offers, Monestier’s form reflects current industry practices. It also ensures that brokers cannot receive more compensation than agreed upon and that pre-emptive offers of compensation will not influence which properties are shown to the buyer. The contract allows for either party to cancel in writing, with certain conditions regarding payment of commission if a property is purchased within a specified timeframe. Minimal services provided by the broker are not included in this list of properties. Monestier clarified that simply sending a listing to a buyer does not count as a service provided.