Realtor Residential Representation Agreement

[Bernadette Levaro]

I am at the beginning of my real estate investing journey. I am looking at a representation agreement for a full year. It includes an obligation to work exclusively with that broker and defines property as any interest in real estate including but not limited to MLS properties, sale by owners and sale by builders.

It defines closing as the act of entering into a contract to buy and then it states that commission is earned and payable when the client enters into a contract to buy. What if the purchase doesn't actually close?

This seems restrictive to me.  Is this normal? Can it be modified? Isn't the purpose of a sale by owner property to save on paying out commissions?  What if I find the property myself?

Any guidance as to the best way of establishing the relationship? and the appropriate documentation / agreement that affords a win - win situation?

Thanks