When it comes to buying or selling a business, it`s important to have a solid understanding of the legal agreements involved. One such agreement is the business brokerage agreement, which is a contract between a seller and a broker outlining the terms and conditions of the sale.
While these agreements can vary depending on the specifics of the transaction, there are certain elements that are typically included in a business brokerage agreement sample. Here are some of the most important:
1. Parties Involved: The agreement should clearly state the names and contact information of both the seller and the broker.
2. Scope of Services: This section will outline the specific services the broker will provide to the seller. This may include marketing and advertising the business, screening potential buyers, and negotiating the sale.
3. Exclusive Right to Sell: This clause gives the broker the exclusive right to market and sell the business during the term of the agreement.
4. Listing Price: The agreement should specify the listing price for the business and any terms related to adjustments or negotiations.
5. Commission: The commission is the fee the broker will receive for their services. The agreement should outline the percentage or flat fee agreed upon, as well as any conditions related to payment.
6. Confidentiality: It`s important to include a confidentiality clause in any business brokerage agreement to protect sensitive information related to the business, such as financial records or customer lists.
7. Termination: This section will outline the circumstances under which the agreement may be terminated by either party.
While this business brokerage agreement sample is a good starting point, it`s important to work with a qualified attorney to ensure that all of the necessary details are included and the agreement is legally binding. With the right contract in place, both the buyer and the seller can feel confident that their interests are protected throughout the sale process.