This will confirm the agreement entered into this ____________ day of __________, 20____
By and between______________________________________________________________________________ hereinafter referred to as "APPLICANT" and ________________________________________________ hereinafter referred to as "BROKER", wherein BROKER, for a fee, has agreed to assist APPLICANT in obtaining certain financing on a best-effort basis.
WHEREAS, APPLICANT wishes to arrange financing as set forth below:
Loan in the approximate amount of _____________________Dollars ($_______________);
and/or an amount determined between the Lender and the APPLICANT. Said financing will be secured by _________________________________ (Property Address)
NOW, THEREFORE, it is agreed as follows:
A. APPLICANT agrees that BROKER shall be granted the (_____)EXCLUSIVE or (_____)NON-EXCLUSIVE right for a period of _________________(_______)days to arrange a loan with a Lender with terms and conditions suitable to APPLICANT. It is also understood, however, that in the event that BROKER produces a loan commitment after the term of this agreement, and APPLICANT accepts it, this agreement is to be considered automatically extended by both parties to and including the date of acceptance and funding.
B. In consideration of services rendered, APPLICANT agrees to pay Broker a fee equal to ______Percent (_____%) of the gross amount of the loan or line commitment at the time of approval and be subject to fees set forth herein and agreed hereto. APPLICANT agrees this agreement shall be a demand against proceeds to effect said demand. Said fee shall be paid as follows:
1. In full at the time said loan is closed by the Lender, Closing Agent, or Escrow Agent, and this agreement is instruction to said Lender, Closing Agent, or Escrow Agent to pay the fee from the proceeds of the loan directly to BROKER without further instruction from APPLICANT.
2. If the loan is not closed due to refusal or failure on the part of the APPLICANT to go forward after he has accepted a commitment from our Lender, the fee is immediately due and payable in full.
C. As further consideration to Broker, APPLICANT agrees not to obtain financing from Lender/s supplied by Broker, either directly or through third parties, without prior express written consent of BROKER, for a period of sixty (60) months from the date of this agreement.
D. In the event it becomes necessary to file a lawsuit to enforce any provision of this agreement, the prevailing party shall receive reasonable attorney fees and all costs of collection.
E. This agreement shall be governed by the laws of the State of ___________________________________
F. This agreement shall not be binding or become effective until and unless accepted by Broker at BROKER'S home office at _______________________________________________.