As a Property Sourcer you need a way to ‘Secure’ a buyer, and to do this we use a Terms of Business Agreement.
The Terms of Business Agreement clearly outlines your expectation of the buyer as well as what they can expect from you.
Here are the 5 things that I consider to be essential to include in a Terms of Business agreement: An Agents Declaration – attests that the Seller is not financial distressed or if have been they are fully informed of all options available to them with regard to the sale of their property.
A Non-Disclosure clause
This states that any information passed to your client is not to be shared or disclosed to anyone else without your express permission.
A Non-Circumvention clause
This states that your client must not ‘go behind your back’ to cut you out of a deal that you have brought to them.
Fees and Payment clauses
These set out your expectations with regard to the payment of your fees. For example at what stage you expect to be paid, if you take an ‘upfront fee’ and if any fees are refundable.
Referral Fees clause
If you receive referral fees you must declare it in your agreement. These fees don’t have to be cash, it could be: A Voucher or Discount on the providers services to you
Be a Professional!
If you work with any profession for example an accountant or solicitor you are expected to sign a Terms of Business Agreement before working with them.
As Property Sourcer’s we really need to start considering ourselves to be professionals and operate as other professional bodies already do.
You have worked hard to secure a deal, make sure that you ensure that you get paid!