When it comes to purchasing real estate, many buyers choose to work with a buyer`s broker to help them find the right property and navigate the often-complicated buying process. And one question that often arises is whether buyer broker agreements can be executory.
Before we dive into that question, let`s first define what an executory contract is. Simply put, an executory contract is a contract that has yet to be fully performed by both parties. In the case of a buyer broker agreement, this means that the contract is not yet complete until the buyer has found and purchased a property.
Now, back to the original question: can a buyer broker agreement be executory? The answer is yes. In fact, most buyer broker agreements are executory by nature. They typically outline the services that the buyer`s broker will provide during the home search and buying process, but the contract is not completed until the buyer successfully purchases a property.
So, what does this mean in practical terms? Essentially, it means that both the buyer and the broker have certain obligations that must be fulfilled before the contract is complete. For the buyer, this typically means working with the broker to find suitable properties, attending property viewings, and ultimately making an offer on a property. For the broker, it means providing guidance and support throughout the buying process, negotiating with sellers and their agents on behalf of the buyer, and helping the buyer navigate the various paperwork and legal requirements associated with purchasing a property.
Once the buyer has successfully purchased a property, the buyer broker agreement is considered complete. However, it`s worth noting that some agreements may include clauses that continue to bind the buyer and broker even after the sale has been completed. For example, some agreements may stipulate that the buyer must use the same broker for any future property transactions for a set period of time.
In sum, buyer broker agreements can definitely be executory, and this is typically the case for most such agreements. However, it`s important to carefully review any agreement you sign to ensure that you understand your obligations as the buyer, as well as the services that the broker will provide. With a clear understanding of the terms of the agreement, both you and your broker can work together effectively to find the right property and complete the transaction successfully.