The Terminate Buyer Broker Agreement is essential when either party wishes to end their professional relationship before a property purchase is completed. This document is commonly used when the buyer wishes to work with a different broker, when the relationship isn't productive, or when the property search is being abandoned. Under U.S. real estate law, it's important to properly document the termination to prevent future disputes about commissions, shown properties, or ongoing obligations. The agreement typically includes details about any protection period, outstanding compensation, and mutual releases.
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1. Parties: Identification of the buyer and broker
2. Background: Reference to original agreement and reason for termination
3. Definitions: Key terms used in the termination agreement
4. Termination Statement: Clear statement of agreement termination
5. Effective Date: When the termination becomes effective
6. Mutual Release: Release of obligations between parties
1. Compensation Terms: Details of any outstanding compensation or commission arrangements that need to be addressed
2. Protection Period: Provisions regarding broker's rights for properties shown prior to termination
3. Confidentiality: Provisions regarding ongoing confidentiality obligations and handling of sensitive information
1. Schedule A - Original Buyer Broker Agreement: Copy of the original agreement being terminated
2. Schedule B - Property Schedule: List of properties shown by broker during the agreement period
3. Schedule C - Financial Statement: Statement detailing any outstanding financial obligations between parties
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