Buyer Agency Agreements

A buyer agency agreement is an employment contract that defines how a home buyer and a real estate agent will work together. 

The agreement outlines both parties’ terms, responsibilities, and obligations. This is created to protect both parties during the home-buying process. Buyer agency agreements are required by law to be signed before a buyer may view a home with an agent representing them.

Why are buyer agency agreements important?

➧➧ Required prior to viewing homes
Buyer agency agreements are required by law to be signed before a buyer may view a home with an agent representing them.

➧➧ Clarity of Relationship
The agreement outlines the relationship between the buyer and the real estate agent. It establishes the agent's fiduciary duty to the buyer, meaning they must act in the buyer's best interests.

➧➧ Commitment 
Signing a buyer agency agreement ensures that the agent works exclusively for the buyer's benefit. Similarly, a buyer is committing to work exclusively with the agent with whom the agreement is made.

➧➧ Clear Expectations
The agreement defines the terms of the relationship, including the scope of services provided by the agent, the duration of the agreement, and any compensation arrangements. This clarity helps avoid misunderstandings or disputes later on.

➧➧ Confidentiality
The agreement typically includes confidentiality provisions, protecting sensitive information shared between the buyer and the agent.

➧➧ Legal Protection
Having a written agreement in place provides legal protection for both parties. If there are any disputes or disagreements, the terms of the agreement can serve as a reference point for resolving them.

➧➧ Access to Listings
In some cases, certain listings may only be available to buyers represented by agents with signed buyer agency agreements. This can give the buyer access to a broader range of properties.

What is included in our buyer agency agreement?

➧➧ Responsibilities of Buyer Agent and Buyer 

Buyer Broker Responsibilities:

• Use professional knowledge and skills to locate properties for buyer
• Assist buyer through the process of property acquisition
• Represent the interests of the buyer in all negotiations and aspects of the transaction

Buyer Responsibilities:

• Buyer will work exclusively with agent
• Buyer will contact agent with any questions about properties, not the seller or other agent
• Buyer agrees not to visit new home communities without being accompanied by agent
• Buyer will provide accurate necessary financial and personal information to be used for establishing buyers ability to purchase

➧➧ Compensation

The buyer agency agreement specifies the fee that the buyers agent charges for their services, also known as buyer agent compensation.

Buyers have 2 options for how to compensate their agent:

Option 1: Buyer shall seek payment of compensation from seller. Buyer authorizes agent to request this contribution in offers. In the event the seller does not pay the total compensation due, buyer agrees to pay the difference at settlement. 

Option 2: Buyer shall pay broker compensation as an additional closing cost at settlement

➧➧ Term
Our buyer agency agreements have terms between 6 - 12 months depending on the timeline and plans for a buyer to complete their purchase.

We can discuss a shorter buyer agency term if the buyer wishes to contract with the agent on a trial basis before making a longer-term commitment. 

➧➧ Termination

We understand that a buyers plans may change and we offer buyers the option to terminate their buyer agency agreement by providing us with written notice (email is fine).