Unlike Non-exclusive Agency, an Exclusive Right to
Represent a Buyer in a real estate transactions, the Buyer assumes the
definition of Client, and the benefit of client level services. Such agreements are vastly different in
scope and purpose. Under South Dakota
law, Brokers representing Buyers’ as with Sellers, must execute a written
instrument disclosing the duties and responsibilities of both Buyer and Broker,
including, but not limited to; the preferred description of the target property; term of
agreement; compensation; professional services; disclosure of Buyer’s identity;
agency
disclosure; nondiscrimination; and financial capability.
Similar
to an Exclusive Right to Sell Agreement, a Broker is assured of an unrivaled
and exclusive right to represent a Buyer as described under the Agreement, to
the exclusion of all others, for a disclosed period of time under certain
qualifying conditions including fees for professional services. Both Broker and Buyer are bound by such
terns whether the same may be foolish or improvident to either party.
As
with Limited Agency, Exclusive Agency is a contract between Broker and Buyer,
whereby the Broker agrees to represent a Buyer in a single transaction which is
attached to or made apart of a written Offer and Agreement to Purchase. Such Disclosures or Agreements set forth the
parameters under which a Broker may serve as the exclusive agent to the
transaction, which openly imparts formal notice to all parties to the
transaction, that certain requirements must be observed by Buyer and Seller,
and further states the extent to which a Broker may extend professional
services including advocacy, disclosure and fiduciary.