Buying a house is more complicated than other purchases; buyers may sign many agreements - one of them is the Buyer Broker Agreement.
The Buyer Broker Agreement, or the Exclusive Right to Represent Buyer Agreement in Virginia, Maryland and Washington DC, sets up the relationship between you and your broker. These legal documents are just one of the necessary agreements in real estate.
If you need to become more familiar with The Buyer Broker Agreement, this article is for you.
Explaining a Buyer Broker Agreement
The Buyer Broker Agreement defines the legal relationship between you, the buyer, and the broker. Virginia state law requires real estate agents and buyers to have a buyer agency agreement in place before engaging in real estate related activities.
For an agent to represent a homebuyer, both parties outline the terms of their relationship in a legal document, the Buyer Broker Agreement. The Buyer Broker Agreement guarantees your agent legally has agreed to represent you and your interests.
The Buyer Broker Agreement ensures that your agent cannot legally disclose your confidential information to the seller.
This legal document defines who represents who in the real estate deal.
What Key Terms are Found in the Buyer Broker Deal?
As with any contract, specific words and phrases should be clarified before signing on the dotted line.
Early Termination/ Advanced Notice
This portion of the agreement determines how a possible early termination of the relationship will be handled. It will outline specific steps required if the contract is terminated early. In addition, it takes into consideration the amount of money the buyer will pay the agent if prior notice is not given.
Length of Term
Buyer Broker Agreements are generally between six months and one year- usually negotiable by both parties.
The seller technically pays the fee, but the seller and their agent factor that cost in when determining the asking price for the home. So, in the end, you’re actually providing the funds that the seller then uses to pay both agents.
Designated or Dual Representation
These representations signify the approval of the buyer to have the brokerage show them the properties they have listed. This means if you sign with an agent that works for a specific brokerage, that agent is permitted to show any properties from that brokerage.
What is the Role of the Buyer's Agent?
The buyer's agent guides buyers through the entire home-buying process and is there to answer any questions you have. The following are some of the many responsibilities of a buyer's agent:
- Find the right property for you.
- Negotiate the offer on your behalf.
- Recommend other necessary professionals such as home inspectors and real estate attorneys.
- Work through any setbacks with you and come up with solutions.
The Bottom Line
A buyer signs the Buyer Broker Agreement to institute a relationship with their real estate agent. This agreement protects buyers and ensures their agent works in their best interest. Don't hesitate to contact us if you have questions or are searching for an experienced real estate agent.
The Glass House Real Estate Team
We are passionate about empowering home buyers and sellers. Our team brings a wealth of knowledge and experience. We will help you seamlessly navigate the home buying or selling process stress-free.