Form to be paid by a FSBO (For Sale By Owner)

This post is a courtesy of the Weekly Digest, provided by the Texas Association of REALTORS®. Read more legal FAQs on www.TexasRealtors.com.

Question:
I represent a buyer who wants to purchase a home that is for-sale-by-owner. The owner tells me he will pay me a fee if he signs a contract with my buyer and that contract closes. I thought there was a one-time listing agreement but I cannot find one. What form should I use?

Answer:
The Texas Association of REALTORS® doesn’t have a one-time listing agreement, but you could use Registration Agreement Between Broker and Owner (TAR 2401). This form allows you to register your buyer to cover the purchase of the owner’s property during an agreed time period. It also contains language to provide that the owner will pay your negotiated fee should your buyer purchase the property during that period. The agreement doesn’t allow you to list the property for sale or require the owner to pay you a fee should the owner sell the property to someone else. Finally, the form makes it clear that you represent the buyer only.

This form could be used in similar situations where the broker is representing a buyer interested in farm and ranch or commercial property. It is not intended to take the place of a buyer’s representation agreement between a broker and his buyer client.