Exclusivity Fee Agreement

If the buyer is unable to exchange contracts at the end of the fixed period, the contract expires and the seller can negotiate with other buyers. As a general rule, the buyer is required to pay a non-refundable down payment to cover the seller`s costs if the buyer does not advance. The exclusivity period begins at [Agreement.CreatedDate] and ends at [Agreement.EndDate]. It is up to the parties to negotiate both the duration of the exclusivity period and the amount of the exclusivity fee (if there is one). The buyer wants the exclusivity period to be as long as possible, with the seller wishing otherwise. The seller wants the exclusivity fees to be as high as possible, the buyer wanting the opposite. PandaTip: This section of the proposal prevents any party from assigning its rights and obligations to another party without prior authorization, in accordance with the terms of this agreement. An exclusivity clause may protect both parties to the contract. In the absence of this clause, a buyer could refuse to sell or promote a counterparty`s goods or services, making it difficult for the company to succeed. The exclusivity clause also benefits the buyer because it prevents the seller from making goods or services available to anyone willing to sell or promote them. Exposure limitation is a marketing tool that can increase consumer excitement and anticipation.

Similarly, buyers can be unreliable, which is why sellers sometimes demand payment in return for the seller who grants exclusivity. Whether the payment is repaid depends on the amounts and what the parties are trying to obtain. It can be considered a whiff of pressure to require that this sum not be recoverable if the purchaser has not necessarily performed due diligence on the land and cannot know whether the property has a good and marketable title or if it is subject to restrictions that make it unsatisfactory for that purpose. As a result, it can be a bit chaotic and often difficult to negotiate and agree on the terms of an exclusivity agreement involving payment. The parties may agree on limited circumstances in which the surety is repaid, such as. B: a downward assessment; an error in the collection of materials or an aggregation of survey defects that represent a certain financial value; or issues that would mean that we, as lawyers, could not confirm that the property has a good marketable title (and which cannot be resolved at the seller`s expense with confidence or in any other way prior to underwriting). This could therefore be better described by agents if the terms are compiled as an exclusive deposit or fee, rather than as a down payment or a non-refundable payment, as it is clearly non-refundable unless the buyer simply changes his opinion on the purchase without good reason! Taking into account the payment of the sum of the [entry exclusivity fee] to the seller, whose receipt is recognized and who receives fees and other costs related to his investigations and due diligence resources to management and negotiates the proposed transaction, the seller undertakes with the buyer to become, directly or indirectly, for the duration of the exclusivity period One of their executives , employees, representatives or consultants): Non-payment is an offence and, at the seller`s discretion, the full termination of this exclusivity contract.

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