Agreement Appointing Broker for Sale of a Shop Along with Unsold Stock in
Trade
THIS AGREEMENT made at …………….on
this.......................day of …………….20………... between A S/o B, resident
of …………….hereinafter referred to as "the owners" (Which expression shall,
unless it be repugnant to the context or meaning thereof, be deemed to mean
and include his heirs, legal representatives, executors and administrators)
of the ONE PART and M/s …………….BM Traders, a partnership firm, having its
registered office at…………. hereinafter referred to as "the brokers" (which
expression shall include the survivor of them., the legal representatives of
a deceased partner and the pariners for the time being of the said firm) of
the OTHER PART:
WHEREAS the owners of a shop, referred to as "the owners," and a partnership
firm known as M/s BM Traders, referred to as "the brokers," come together to
appoint the brokers as the selling agent for the shop and its remaining
unsold stock in trade.
WHEREAS, The owners of the shop, Mr. A, son of Mr. B, and resident of
[location], are the absolute owners of the said property. They have been
engaged in the business of books and stationery within the shop. Due to
personal reasons, the owners have decided to sell the shop along with the
remaining unsold stock in trade and furniture.The Brokers M/s BM Traders, a
reputable partnership firm with its registered office at [location], are
experienced brokers operating in the same area where the shop is situated.
The brokers have expressed their willingness to act as the intermediary for
the sale of the shop and goods.
Now this deed witnesses and the parties hereto hereby agree as
follows:
OWNERSHIP OF THE SHOP:
The owners possess absolute ownership of a shop situated in [location], which
will be referred to as the "Said Shop." For further reference, the First
Schedule contains a detailed description of the shop.
BUSINESS OPERATIONS:
The owners previously operated a books and stationery business in the Said Shop.
However, for personal reasons, they now seek to sell the shop along with the
remaining unsold stock in trade and furniture, collectively referred to as "the
goods." The Second Schedule provides comprehensive details regarding the goods.
REQUIREMENT FOR A BROKER:
Recognizing the need for a competent broker to facilitate the sale of the shop
and goods, the owners have chosen the brokers. The brokers possess an
established reputation in the area where the shop is located and have expressed
their willingness to act as the selling agent.
APPOINTMENT OF BROKERS:
The owners have agreed to appoint the brokers as the exclusive brokers for the
sale of the shop and goods.
SALE PRICE AND PAYMENT:
The brokers are authorised to sell the shop and goods for ₹ [amount]. Upon
agreement, the purchaser must pay ₹ [amount] as earnest money. The remaining
balance shall be payable within one month or at the time of registration of the
sale deed, whichever occurs earlier.
REPRESENTATION AND WARRANTY:
The owners guarantee the accuracy and authenticity of the property and goods
described in the schedules. They confirm that the property is free from any
mortgage, charge, lien, or encumbrance.
DELIVERY OF TITLE ABSTRACT:
Within one week of receiving the earnest money, the owners will provide the
purchaser with an abstract of title. This document serves as proof of their
ownership of the property and goods, confirming their freedom from any mortgage,
charge, lien, or encumbrance.
SALE DEED AND POSSESSION:
The owners commit to executing the sale deed for the property and transferring
possession of the shop and goods to the purchaser.
BROKER'S COMMISSION:
The owners agree to pay the brokers a commission equal to 2% of the total
consideration. This commission will be payable in two installments: 0.5% upon
receiving the earnest money and the remaining 1.5% at the time of registering
the sale deed in favor of the purchaser.
AUTHORIZATION AND CANCELLATION:
The brokers are authorised to sell the property and goods within a ten-day
period from the date of this agreement. Upon the expiration of this period, the
authorization will be automatically terminated. In such cases, the brokers will
not be entitled to any remuneration from the owners. However, if the owners
choose to cancel the broker's authority within the initial ten-day period, the
brokers shall be entitled to reimbursement of their expenses incurred during the
sale process, not exceeding ₹ [amount].
DESCRIPTION OF THE SHOP
The First Schedule provides a detailed description of the shop owned by the
sellers. It includes information regarding the location, size, layout, and any
notable features of the shop. This description serves as a reference for
potential buyers to understand the property's physical attributes.
DETAILS OF THE GOODS
The Second Schedule contains comprehensive details regarding the remaining
unsold stock in trade and furniture associated with the shop. It includes a list
of the goods, their quantities, descriptions, and their estimated value. This
information assists potential buyers in evaluating the inventory and its
potential value.
The agreement is witnessed by two individuals who have observed the signing and
delivery of the agreement by both parties.
By appointing experienced brokers and setting clear guidelines for the sale
process, the owners aim to facilitate a smooth and successful transaction.
Meanwhile, the brokers undertake the responsibility of marketing and selling the
property and goods promptly and efficiently.
It is important to note that this article serves as a summary and does not
replace the legal validity of the actual agreement. Parties involved are advised
to review the complete agreement thoroughly and seek professional advice if
necessary.
In witness whereof, the parties have signed and delivered this agreement on the
day and year first written above.
Signed and delivered by the within-named company:
BM Traders, through the hands of Mr. A,
Managing Partner
Signature: ____________________________________________
Date: ______________________
Signed and delivered by Mr. A:
Signature: ____________________________________________
Date: ______________________
Witness Name: ____________________________________________
Signature: ____________________________________________
Date: ______________________
Witness Name: ____________________________________________
Signature: ____________________________________________
Date: ______________________
