Form 551, Schedule - Buyer Customer Service Agreement

What Is a Form 551, Schedule - Buyer Customer Service Agreement

Form 551, Schedule - Buyer Customer Service Agreement is a legally binding contract between a buyer and a real estate broker. This agreement outlines the services the broker will provide, the expectations from both parties, and the terms of compensation for the broker. It is designed to ensure clarity and transparency in the relationship between the buyer and the broker during the property acquisition process.

When to Use Form 551, Schedule - Buyer Customer Service Agreement

• When entering the real estate market for the first time, buyers may need professional guidance to navigate the complexities of purchasing a property.
• Investors seeking to acquire properties for rental or resale can benefit from a broker's expertise in identifying lucrative opportunities.
• Businesses looking to purchase commercial real estate can use this agreement to formalize their relationship with a broker who specializes in commercial properties.
• Individuals or families relocating to a new area may use this agreement to engage a local broker familiar with the market.
• Buyers with specific needs, such as agricultural land or vacation homes, can use this agreement to ensure the broker understands and prioritizes their unique requirements.

How To Fill Out Form 551, Schedule - Buyer Customer Service Agreement

• Enter the date, buyer's name, and broker's name at the top of the form.
• The broker agrees to use best efforts to locate and present properties of interest as defined in the agreement. The buyer must understand that specialized services like property inspection and legal advice are not included.
• The broker must inform the buyer about the compensation policies and any additional compensation scenarios.
• Specify the commission structure, whether it’s a percentage of the purchase price or a flat fee. Indicate any non-refundable retainer fees.
• Define the type of property the buyer is interested in, including special features, desired location, price range, and financing terms.
• Acknowledge that the broker may represent other clients with similar interests.
• Agree to submit disputes to binding arbitration and understand the implications of this provision.
• Confirm that the agreement constitutes the complete understanding between the parties and can only be altered in writing.
• Both buyer and broker must sign and date the agreement.

When to File Form 551, Schedule - Buyer Customer Service Agreement

Form 551, Schedule - Buyer Customer Service Agreement should be filed as soon as both parties have agreed to the terms and signed the document. Typically, this filing occurs at the beginning of the buyer-broker relationship. Filing the form promptly ensures that both the buyer and the broker are clear on their respective duties and the terms of their engagement, providing a solid foundation for a successful property acquisition process. Both parties should retain the form for their records and be used as a reference throughout the agreement.

By adhering to these guidelines, buyers and brokers can ensure a smooth and professional working relationship, facilitating a more efficient and successful property transaction process.