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  • Writer's pictureJeff Sorg

Unlocking the Benefits of a Buyer Broker Agreement: How This Agreement Protects the Buyer and Their Real Estate Broker

Updated: Mar 28

Real estate broker and client signing a buyer broker agreement

In the current real estate market, it can be challenging to navigate the complexities and secure the best deal. That's why having an experienced real estate broker as your guide can be invaluable. To ensure that you receive their unwavering support as a buyer, it's crucial to establish a buyer representation agreement between you and the broker. This agreement will outline the terms of your relationship and guarantee that the broker is working in your best interest throughout the buying process.


This agreement is not just about services, but also about protecting both parties - the buyer and the broker.


  • Your Advocate, Not Just a Guide: A signed agreement establishes a fiduciary duty, legally binding the broker to prioritize your interests throughout the process. This means their expertise focuses on finding the perfect home at the best price.

  • Clear Expectations, Smooth Sailing: The agreement spells out the scope of work and detailing the services your broker will provide. This includes property searches, market analysis, offer negotiation, and guidance through the closing process. Knowing what to expect fosters a smooth working relationship and prevents misunderstandings.

  • Protecting Your Broker: If you come across your ideal home, but the seller is not willing to offer a commission to the buyer broker, the agreement ensures you will compensate your broker in case their efforts lead to a successful purchase. This is also applicable for off-market scenarios where the properties are not publicly listed.

  • Navigating Tricky Situations: In rare cases, a broker might represent both buyer and seller or two buyers competing for the same property (dual agency). The agreement clarifies the limitations and potential conflicts of interest in such situations, safeguarding your position.

  • Building Trust and Transparency: A formal contract fosters a foundation of trust between you and your broker. Having everything laid out upfront prevents miscommunication and strengthens the professional relationship.


A buyer representation agreement is a crucial document that acts as an insurance policy for a successful homebuying experience. This agreement guarantees dedicated representation from your broker, protects your broker from nonpayment of fees, and ensures no misunderstandings about your contractual relationship. It is highly recommended to have this document in place before embarking on the home buying journey.


Note: It is expected that starting in mid-July 2025, a written representation agreement will be mandatory for the buyer and broker before the broker can show any real estate to a potential buyer.


Remember: Seek professional legal counsel to fully understand the intricacies of a buyer broker agreement and ensure it aligns with your specific needs.


END

(C) 2024 Jeff Sorg

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