At some point in your career, hopefully several times, you’ll have an opportunity to work help unrepresented buyers and sellers contract with another to purchase a property. These situations could include:
- You have buyer clients who wants to submit a offer to an unrepresented seller (FSBO).
- You have a seller client who wants to sell their property to an unrepresented buyer.
In these situations you would use the TAR form 2401: Registration Agreement Between Broker and Owner.
TAR-2401 works and looks almost like a regular Residential Listing Agreement. The important difference between a Residential Listing Agreement and the Registration Agreement Between Broker and Owner is the option of defining who you represent in the transaction. You find this option in paragraph 7. A on Page 2 (see picture below. Be sure to have this Registration Agreement signed by the seller before showing the buyer the property.
When Representing The Seller, Unrepresented Buyers or Sellers Must Sign This Acknowledgement.
Click on Notice To Buyer/Tenant Declining Representation picture below to download the notice.
If we can be helpful let us know.
Ken Brand – 832-797-1779 | Linsey Ehle 949-939-2514
Here’s what TAR has to say about the matter.
What’s the right form for a one-time listing agreement?
Posted on February 20, 2013 by Texas Association of REALTORS®
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?
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.