Broker's Addenda Clauses (REPC, ERS, BBA)
Updated: Mar 14, 2022
These clauses are meant to be copied, EDITED, and pasted into a blank addendum for a REPC, ERS, or BBA. If you're not sure about a clause, please contact the broker, your team lead, mentor or an experienced agent before WINGING it!
BAC is LOW Resolution: Use the Commission Payment Addendum if the BAC is below what you’re willing to accept; or if Buyer wants Seller to cover the difference between the BAC and Buyer’s BBA commission obligation. The number to enter is
Escalation Clause: We'll Beat Any Offer by $1,000 (or a number you choose)
1. ESCALATION TERMS: The following terms will apply to increase the Purchase Price of this offer if, prior to Seller’s acceptance of this REPC, Seller receives one or more additional bona fide written offers to purchase the Property (“Competing Offers”), with terms acceptable to Seller which would result in higher net proceeds (Purchase Price minus any Seller concessions) to Seller than the net proceeds which Seller would obtain by acceptance of this REPC:
a. Purchase Price: Purchase Price shall be $XX.00, unless Seller receives a Competing Offer triggering an Escalation Amount as defined below.
b. Escalation Amount: Buyer agrees to increase the Purchase Price by the amount necessary to permit Seller to realize net proceeds that are $XX.00 more than the net proceeds of any Competing Offer.
c. Cap: (Optional) The Purchase Price under this offer shall not exceed $XX.00 (“Cap”).
d. Documentation: If Competing Offers cause the escalation of the Purchase Price of this Offer, the Seller will provide the Buyer with a copy of the highest net offer, with personal information redacted for privacy.
e. Multiple Escalations: The Buyer acknowledges that multiple offers containing escalation clauses may result in multiple escalations and in some cases, escalation to the Cap.
2. SELLER’S RESPONSE FOR ESCALATION: If Seller agrees to the terms contained herein, Seller will accept this Addendum. In the event of a Competing Offer, Seller shall prepare and deliver a Counteroffer Addendum to Buyer setting forth the final Purchase Price for the Property after any Escalation triggered in accordance with Section 1 of this Addendum, and attach the highest Competing Offer as set forth in Section 1.d., above.
3. In the event Seller accepts the terms of this Addendum and does not provide the Purchase Price Counteroffer set forth in Paragraph 2 above, the Purchase Price set forth in Section 1.a. above shall remain in full force and effect.
Instead of INCREASING Purchase Price, Consider This...
Buyer agrees to contribute $0.00 (Put in a number!) towards Seller's closing costs, to be applied as directed by Seller, and may include payment towards any or all real estate fees and commissions, title fees and charges, assessments, or mortgage payoff, etc. This contribution is intended to increase Seller's net proceeds AND NOT accentuate potential appraisal deficiencies or gaps, which will be inherent with an increased sales price.
Time Clause Boost
Add as Other to 1.2: Proof of performance. Should Buyer choose to remove the Subject to Sale Condition above, Buyer shall provide evidence of Buyer’s ability to perform the terms of the REPC to Seller’s satisfaction (i.e., confirmation from the bank as to financing, proof of bridge loan, accepted purchase contract on buyer’s property). If Buyer cannot supply such evidence, then this REPC is voidable at the option of Seller. If Seller voids the REPC, then the Earnest Money Deposit, or Deposits, if applicable, shall be released to Buyer. Time is of the essence as to this provision.
1.3 Schedule of Non-Refundable Earnest Money
Earnest money deposit shall become non-refundable as follows: $xx shall become non-refundable at the Financing & Appraisal Deadline; $xx shall become non-refundable each week thereafter (use specific dates). Should Seller accept another offer under the Time Clause, all [refundable] earnest money deposit funds shall be returned to Buyer.
Easy Exit Listing Agreement (Addendum to the ERS)
Either party may cancel this Agreement at any point during the listing period by notifying the other party in writing of the termination. (If the listing is cancelled BEFORE six months from the listing date, Seller will pay a $XX cancellation fee.) This clause is only valid BEFORE the subject property is under contract.
Reduction in ERS Commissions--Unrepresented Buyer
Should Seller or YOURNAMEHERE, Listing Agent, find an unrepresented Buyer and Buyer chooses to be unrepresented (Listing Agent does the paperwork)—the total commissions will be reduced to X%.
Take the Listing NOW and DELAY publishing it (Addendum to the ERS)
Seller has a listing agreement with KW Westfield and its agent. Seller instructs listing agent to NOT activate (make Active) the listing until home is ready for market. Seller will communicate to Listing Agent WHEN to activate the property listing on UtahRealEstate.com (the Multiple Listing Service). Expected Active date to be DATE. Agent will upload the listing and immediately place the home to OFF MARKET Status until notified by Seller to “go live”.
ERS/BBA Addendum for Defining Team Members
The NAME Team consists of AGENT, AGENT, and LASTAGENT (etc.), all of whom are licensed agents with KW Westfield. NAME or NAMES is/are unlicensed team members who may also be in contact with you regarding your transaction.
For BBA (if you want to use it)
If commissions offered by the listing brokerage are below XX%, KW Westfield will negotiate with the Seller to cover the difference. Under no circumstance will Buyer be asked to bring additional funds for commissions to settlement.
Disclaimers: This content is the property of KW Westfield. The information is guidance for KW Westfield agents and friends and any legal references relate to ideas, practices, and laws of the State of Utah and the Utah Department of Commerce, Utah Division of Real Estate. All errors are those of the author. This IS NOT legal advice. Call Broker with specific questions and call Broker with correct information should you discover an error (highly likely).
Each Keller Williams office is an independently owned and operated franchise of Keller Williams Realty International and is an Equal Opportunity Employer and supports the Fair Housing Act. All information provided, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy.
WARNING – FRAUDULENT FUNDING INSTRUCTIONS
Online banking fraud is on the rise. If you receive an email containing WIRE TRANSFER INSTRUCTIONS call your REALTOR or the title company who's contact information you know is reliable immediately to verify the information prior to sending funds.