A. Authorization to request compensation

The Client shall authorize TREC to request payment of the buyer agent fee (typically 2 - 3.5% of sale price) in the offer and purchase price negotiated with the seller. TREC shall insert the appropriate contingencies into the Client’s offer to secure its compensation out of the proceeds of the real estate transaction. However, the client understands that failure to comply with "Client Duties" in Section IB of TREC's exclusive buyer agency contract may undermine TREC's ability to collect and rebate a buyer agency fee.

The Payment Option chosen by the Client shall determine the buyer agency fee collected and rebated. Each Payment Option entitles Client to varying degrees of TREC’s professional services as described below and in any subsequent scope of work.

B. Payment Options: Menu of Fees

The Client must choose one of the following payment option plans from the attached working draft:

TWO COMMISSION / REBATE OPTIONS

Option 1.1: Traditional Commission / 25% rebate

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: 25% of buyer agency fee

Retainer: None ($500 retainer is waived)

Hourly fees: None

Minimum fee: $5,000 (may reduce rebate)

Minimum donation: None

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and 25% will be rebated to the Client.

If the FSBO sales price does not include a buyer agency fee, a $3,000 minimum fee will be due to TREC regardless of whether 20 hours of service are rendered. Services rendered beyond 20 hours will be compensated at $100 per hour and due at closing.

Option 1.2: 1% commission / balance rebated

Limited availability:

TREC may limit the number of clients using this payment option at anytime without notice

Limited to properties originally asking over $1 million

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: Buyer agency fee above 1%

Retainer: None ($500 retainer is waived)

Hourly fees: None

Minimum fee: $10,000

Minimum donation: None

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and any fee above 1% will be rebated to the Client.

If the FSBO sales price does not include a buyer agency fee, a $5,000 minimum fee will be due to TREC regardless of whether 20 hours of service are rendered. Services rendered beyond 20 hours will be compensated at $150 per hour and due at closing.

FOUR HOURLY FEE OPTIONS

Option 2.1: Fee-for-service: $150 per hour

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: 100%. Any Buyer Agent fee collected will be rebated, in it's entirety, to Client.

Retainer: $500 retainer is waived

Hourly fees: $150 per hour

Minimum fee: None

Minimum donation: None

Billing policies:

Professional and administrative time is billed in 15-minute increments, for a minimum charge of $37.50 for professional or administrative task.

All professional and administrative tasks, including but not limited to the following, are billed at the blended hourly fee of $150 per hour: price negotiations and other due diligence efforts, MLS research and market analysis, showing properties, travel to showings and appointments, e-mail and intranet posts, telephone calls, faxes, internet searches, making appointments, preparation of bills and invoices.

Client may pay invoices, which are due upon receipt, by check, credit card using PayPal, or via electronic transfer to TREC's Bank of America account.

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and rebated to the Client.

If the FSBO sales price does not include a buyer agency fee, there will be no rebate to Client at closing and no minimum fee.

Option 2.2: Fee-for-service: $125 per hour / $500 retainer

Same as 2.1 above; however, if Client pays $500 retainer and agrees to prepay for professional services in four hour increments, TREC's hourly fee will be reduced from $150 to $125 per hour.

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Retainer: A $500 retainer is payable to TREC before services are rendered

Prepayment policy:

Additional installments of $500 must be prepaid in advance of services which will be billed in four hour increments (e.g hours 5 through 8 must be prepaid after receiving the first four hours of services.)

Billing policies:

Client may may pay invoices, which are due upon receipt, by check, credit card using PayPal, or electronic transfer to TREC's Bank of America account.

Professional and administrative time is billed in 15-minute increments, for a minimum charge of $31.25 for professional or administrative task.

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and rebated to the Client less a minimum fee of $2,500 will be due to TREC for the first 20 hours, regardless of whether 20 hours of service are rendered.

If the FSBO sales price does not include a buyer agency fee, there will be no rebate to Client at closing but a minimum fee of $2,500 will be due to TREC for the first 20 hours, regardless of whether 20 hours of service are rendered.

Option 2.3: Fee-for-Service: $100 per hour / $500 retainer / donation

Same as 2.1 above; however, if Client pays $500 retainer and agrees to prepay for professional services in five hour increments, TREC's hourly fee will be reduced from $150 to $100 per hour if Client and meets donation requirements below.

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Retainer: A $500 retainer is payable to TREC before services are rendered

Prepayment policy:

Additional installments of $500 must be prepaid in advance of services which will be billed in five hour increments (e.g hours 6 through 10 must be prepaid after receiving the first five hours of services.)

Billing policies:

Client may pay invoices, which are due upon receipt, by check, credit card using PayPal, or electronic transfer to TREC's Bank of America account.

Professional and administrative time is billed in 15-minute increments, for a minimum charge of $25 for professional or administrative task.

Minimum donation:

Client agrees to donate 10% or more of the rebate to one of more charitable purposes, as documented in the attached donation pledge.

Regardless of rebate size, a minimum donation of $1,000 MUST be distributed to one or more non-profit organizations participating in the ASAP: AIDS Shelter Alliance Partnership. The buyer may distribute the balance of their donation to others via the "community commission."

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and rebated to the Client less a minimum fee of $2,000 will be due to TREC for the first 20 hours, regardless of whether 20 hours of service are rendered.

If the FSBO sales price does not include a buyer agency fee, there will be no rebate to Client at closing but a minimum fee of $2,000 will be due to TREC for the first 20 hours, regardless of whether 20 hours of service are rendered. Further, Client agrees to make a minimum donation of $1,000 to a non-profit organization participating in the ASAP: AIDS Shelter Alliance Partners campaign.

Option 2.4: Hybrid Plan: Choose your own hourly fee / rebate / donation

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Similar to other hourly fee options, however:

Client chooses hourly rate for TREC services: $_____ instead of $100 per hour

Buyer Agent fee rebated: _____% based on client's hourly fee

Retainer: A $500 retainer is payable to TREC before services are rendered

Minimum donation:

TREC and Client agree to donate 10% or more of the buyer agency fee they receive to one of more charitable purposes, as agreed in the attached donation pledge. (Example: If client receives a $7,500 rebate on a $10,000 commission, the client shall donate at least $750 and TREC will donate $250.)

FSBO fees:

If a "For Sale By Owner" (FSBO) property offers a 2 - 3.5% buyer agency fee, the full amount will be collected by TREC and rebated to the Client, according to the agreed upon hybrid plan, provided a minimum fee of $2,000 will be due to TREC for the first 20 hours, regardless of whether 20 hours of service are rendered.

THREE FLAT FEE OPTIONS

Option 3.1: $5,000 fee / $1,000 donation

Limited availability:

Client must own property, not currently for sale, with at least $5,500 equity

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: 100%. Any Buyer Agent fee collected will be rebated to Client, subject to conditions below

Line of credit

Client agrees to sign $5,000 line of credit from Rate1Mortgage.com before services are rendered

Retainer: $500 retainer is paid from line of credit before services rendered

Hourly rate: Covers first 40 hours (effective rate of $125 per hour)

Payment policy: TREC draws $500 per month from line of credit, or hours worked whichever higher

Additional hours: Beyond 40 hours, hours are billed at $125 per hour

Minimum fee: $5,000 regardless of whether 40 hours are worked

FSBO fees: $5,000 regardless of whether 40 hours are worked

Closing cost repayment

TREC will request a $5,500 closing cost credit from the seller in any offer submitted so the Client may repay the line of credit and receive a 100% buyer agency fee rebate.

If seller rejects some or all of the closing cost credit, TREC may reduce the rebate by up to $5,500 to repay the line of credit and any interest.

Performance bonus: None

Minimum donation:

Regardless of rebate size, Client must distribute a minimum donation of $1,000 to one or more non-profit organizations participating in the ASAP: AIDS Shelter Alliance Partnership.

Option 3.2: $3,000 fee plus performance bonus / $1,000 donation

Limited availability:

Client must own property, not currently for sale, with at least $3,300 equity

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: 100% less performance bonus. Any Buyer Agent fee collected will be rebated to Client subject to conditions below

Line of credit

Client agrees to sign $3,000 line of credit from Rate1Mortgage.com before services are rendered

Retainer: $500 retainer is paid from line of credit before services rendered

Hourly rate: Line of credit covers first 40 hours (effective rate of $75 per hour)

Payment policy: TREC draws $500 per month from line of credit, or hours worked whichever higher

Additional hours: Beyond 40 hours, hours are billed at $100 per hour

Minimum fee: $3,000 regardless of whether 40 hours are worked

FSBO fees: $3,000 regardless of whether 40 hours are worked

Closing cost repayment

TREC will request a $3,300 closing cost credit from the seller in any offer submitted so the Client may repay the line of credit and receive a 100% buyer agency fee rebate.

If seller rejects some or all of the closing cost credit, TREC may reduce the rebate by up to $3,300 to repay the line of credit and any interest.

Performance bonus:

Pre-negotiated based on savings not to exceed 2% of sales price, will reduce rebate from commission

Minimum donation:

Regardless of rebate size, Client must distribute a minimum donation of $1,000 to one or more non-profit organizations participating in the ASAP: AIDS Shelter Alliance Partnership.

Option 3.3: $3,000 retainer plus bonus / $1,000 donation

Limited availability:

TREC may limit the number of clients using this payment option at anytime without notice

Not available on properties originally asking over $1 million

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Rebate: 100% less performance bonus. Any Buyer Agent fee collected will be rebated to Client, subject to conditions below

Retainer: $3,000 prepaid by buyer

Hourly rate: Covers first 40 hours (effective rate of $75 per hour)

Additional hours: Beyond 40 hours, hours are billed at $125 per hour

Minimum fee: $3,000 regardless of whether 40 hours are worked

FSBO fees: $3,000 regardless of whether 40 hours are worked

Closing cost repayment

TREC will request a $3,300 closing cost credit from the seller in any offer submitted so the Client may repay the line of credit and receive a 100% buyer agency fee rebate.

If seller rejects some or all of the closing cost credit, TREC may reduce the rebate by up to $3,300 to repay the line of credit and any interest.

Performance bonus:

Pre-negotiated based on savings not to exceed 1% of sales price, will reduce rebate from commission

Minimum donation:

Regardless of rebate size, Client must distribute a minimum donation of $1,000 to one or more non-profit organizations participating in the ASAP: AIDS Shelter Alliance Partnership.

MAKE YOUR OWN PAYMENT PLAN

Option 4: Make your own compensation plan

TREC will collect a 2% - 3.5% buyer agency fee from the proceeds of that transaction at closing

Propose any hourly fee, flat fee, retainer, rebate, and donation, or some combination of all, and TREC will consider your proposed payment plan.

Minimum donation:

Regardless of proposed terms, Client must distribute a minimum donation of $1,000 to one or more non-profit organizations participating in the ASAP: AIDS Shelter Alliance Partnership.

Minimum fee on For Sale by Owner properties

Minimum fees may apply, see each compensation plan above for details.

Minimum donations to ASAP (AIDS Shelter Alliance Partners) & Community Commission

Minimum donations may apply, see each compensation plan above for details.

Payment Option Chosen: _________ Client Initials: _________