Buyer’s Agency explained

What is a Buyer’s Brokerage(Representation) Agreement?

A buyer’s brokerage agreement is a written service agreement between you, the buyer, and your Real Estate Broker. (we as agents represent the Broker, but whatever written contract you enter into, it is always with the Broker, and not the agent alone) that outlines, defines and clarifies the relationship between the parties in the contract.  The Buyer’s Brokerage Agreement is just one of several documents that are required to be filled out when retaining the services of an Industry member.

The Buyer’s Brokerage primarily serves three purposes:

1. The role and responsibilities of the industry member( your agent ) are clearly articulated, clearly understood and agreed to in writing. 

2. The service(s) to be provided are clearly understood and agreed to in writing, including compensation and where it comes from.

3. The responsibilities of the buyer are clearly understood and agreed to in writing. Written buyer service agreements provide the best protection for buyers and their representative(s) in the event a dispute arises regarding their respective roles or the service being provided.

Why do I need to sign a Buyer’s Brokerage(Representation) Agreement?

As of July 1st, 2014, in order to retain the services of an industry professional in your real estate purchase, it is mandatory that a Buyer’s Brokerage Agreement is signed.

What options do I have?

The written service agreements, or Buyer’s Brokerage Agreements, come either in Exclusive, or non-exclusive.  As the names suggest, one requires the buyer to retain the services of one particular Broker/Agent, the other states the buyer can work with many agents.  Take a look at the link below for a more detailed description.

Exclusive or Non-Exclusive

A guide to written service agreements

Enhancing consumer protection

FAQ

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