WHAT IS A BUYER REPRESENTATION AGREEMENT?

As the name of the document states, this agreement outlines who is representing the Buyer in the purchase of a home. A Buyer Representation involves a written, oral or implied agreement between a brokerage and a buyer in the which the brokerage represents the Buyer as a Client.

I know most clients are hesitant when it comes to signing anything before the offer is written or they have found the house they want. They fear that they will be tied to one broker or have to pay the Realtor® even if they don't find their dream home.  While this is a legitimate concern, buyers should remember that most real estate contracts are written to protect the buyer in many cases. The verbiage of the buyer representation agreement binds the broker to look for a house for the client as much as it binds the client to the broker. In other words, the commitment works both ways. If the broker isn't doing his job, the buyer should be able to fire him. 

You can choose to remain a "Customer" and not a "Buyer Client" the biggest differece between the two is the amount of commitment expected on both the Brokerage and Buyers part.  As a real estate agent, I am required by real estate law to disclose my role at the earliest opportunity. In doing this, I would discuss the difference between the various type of agreements, the duties I owe you as my client, and overall how the entire partnership between myself as your Real Estate Agent and my buyers will work. 

The Code of Ethics requires that such an agreement must be reduce to writing prior to submitting an offer. That being said, the document in question is complex. If you've got questions about it, ask your agent to clearly explain before signing it, or seek legal advise.

Miranda Cooper

Miranda Cooper

Broker
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*
Contact Me