A buyer agency agreement, also known as a buyer representation or buyer-broker agreement, formalizes the partnership between a home buyer and a real estate agent, setting clear terms and conditions for their collaboration.
Top Reasons to Consider Signing a Buyer's Agreement
- Defines the buyer agent’s responsibilities and legal duties to you as the client.
- Empowers the buyer agent to advocate for you and protect your best interests within the bounds of the law.
- Provides transparency regarding the fees associated with the buyer agent’s services.
Before I start sharing properties, I ask clients to sign this agreement that allows me, as the agent, to legally and exclusively represent the client and their interests. It establishes a formal relationship between us and outlines the terms and conditions under which I will represent the client with their property search.
Essential Components of the Buyer Representation Agreement
The Buyer Representation Agreement lays down vital components that are indispensable for navigating the intricate path of home buying.
It delineates the scope of services, property preferences, duration of exclusive partnership, and compensation terms, providing a crucial framework for our collaboration.
These elements are essential as they ensure clarity, transparency, and mutual commitment, forming the bedrock of a successful home-purchasing journey.
Scope of Services
Defines the services I will provide you including property search, property showings, negotiation, and assistance with the purchase process.
Property Type and Location
The agreement may include details about the type of property you are interested in (e.g., single family, condo, commercial property, etc.) and the geographic area where you are looking to purchase.
Duration
The agreement specifies the period during which you are committed to working exclusively with me (typically 6 months).
Compensation
The agreement specifies how the buyer’s agent will be compensated as it relates to your representation. We can have a conversation at the start of your search to discuss payment scenarios so we can memorialize them in writing in this agreement. Professional fees are negotiable.
Once the agreement has been meticulously crafted, thoroughly reviewed, and meticulously reviewed again, it’s imperative for the agent to discuss and review the agreement with the client before requesting their signature, as it ensures clarity, aligning expectations, addressing questions or concerns, and, ultimately, building trust and rapport throughout the home-buying journey.
If you or someone you know is committed to finding the perfect home and having someone dedicated to representing your interests, give me a call!
