What is a buyer representation agreement?
A buyers agreement helps forge a dedicated partnership between you and your agent that will ultimately help you purchase a home that meets all your important needs. It spells out expectations and helps avoid misunderstandings between all parties. It protects you, as the buyer, in your investment.
Buyer Representation FAQs:
What does a Buyer Agency Agreement entail?
A contract protects both the buyer’s interests and the agent’s time and efforts. Once the agent enters into a contract with a buyer, the agent must offer them total confidentiality and representation. The buyer becomes the client, and the agent can now:
- disclose problems that buyers might not have questioned;
- advise a buyer on what to pay;
- research comparable homes and their sales prices; and
- recommend the best negotiation procedures.
Who benefits from a Buyer Agreement?
Buyers are not the only ones who benefit from this agreement. Ultimately, a buyer agreement is a win-win situation for all parties involved.
- for the buyer, who receives all the added benefits of the agent's research and knowledge of the market.
- for the seller, who is relieved of some liability.
- for the agent, who can now comfortably disclose much more and work much harder for his or her client.
What obligations does a real estate agent have to a buyer?
Connecticut real estate agents are licensed to represent a person for the lease or purchase of a property. Once the agreement is signed, the buyer becomes the client. Agent responsibility to the client is defined by state law, the REALTOR® Code of Ethics and general principles of agency law. The relationship created between the agent and the client is a fiduciary relationship, based on trust. The agent owes the following duties to the client:
- Confidentiality
- Loyalty
- Disclosure
- Diligence
- Obedience
- Accounting
- Reasonable Care
Do I have to sign a Buyer Agreement?
The short answer is: no; it is your right to choose not to be represented. The longer answer: while you don’t have to sign a buyer agreement, it may not be to your advantage to forgo representation. Signing a buyer’s agreement helps the agent prioritize you and your interests, and gives the agent incentive to spend the time it takes to find the best property for your needs.
Who pays the real estate agent's commission?
In almost all cases, the commission is still paid to the seller's agent, who then pays a Buyer Broker Commission to the broker that represents the buyer. The commission is paid out of the proceeds of the transaction (technically by the seller), as it has always been paid. The final price is understood to include the cost of commissions.
