Why Use a Buyer/Broker Representation Agreement?
Why Use a Buyer/Broker Representation Agreement?
Commits broker to the buyer. Ensures buyer has a loyal advocate.
Details the relationship between the buyer and the broker including the length of the relationship.
Buyer knows what the broker does, why it’s done and how you will be helped in acquiring a property.
Buyer knows upfront the compensation cost for the broker services.
Buyer knows what the broker must do in order to earn the compensation.
- Broker must show the property to the buyer either in person or virtually.
- Broker must submit a signed written offer to the seller of the property from the buyer.
- Broker must have completed investigative work for the buyer on the specific property. There is no obligation for simply purchasing a property that the agent has sent to you for your review.
Buyer or broker may cancel the agreement at any time by giving written notice to the other.
Buyer only owes broker compensation after cancellation if buyer purchases a property where there was broker involvement and that property is on a list which broker must provide within 5 days of the cancelation.
Broker’s compensation may already be covered by compensation offered by the seller.
If broker compensation is not covered by Seller compensation, buyer may ask the seller in their offer to purchase to pay the Broker compensation.
Payment from the seller to the buyer’s broker is fully disclosed to the buyer on any property the buyer may be considering. The broker’s final compensation is confirmed to the buyer on the buyer’s closing statement from escrow.
