Take the time to check each section of the agreement and ask the buyer if he has any questions or if he needs clarification of the text contained in the form. It is important that you provide a copy of your buyers` representation agreement before signing it, so that they have the opportunity to read it carefully and send it to their lawyer for verification if necessary. An agreement to represent buyers, like other contracts, must indicate a start and an end date. Hopefully the end date is when the house they buy closes. However, there are periods when the contract expires before the specified end date. The main difference between the two terms is the fiduciary duty that the broker and agent owe to the client. While the agent must be honest and ethical to both parties in the transaction, he or she must be loyal to his or her client`s interests and follow all their legitimate instructions. This trust obligation is prescribed by the terms and conditions of the purchaser representation contract. Another element of the exclusive agreement with the buyer`s representative is compensation. All commission percentages are negotiable.
However, it is very likely that the seller will pay the buyer`s agent to bring them a qualified buyer. However, your contract may include a minimum commission amount that you may have to cover if the seller does not offer a commission to your agent. Be sure to read this section carefully. During this period, the buyer should not work with another agent to acquire a property. The agreement should describe the nature of the property to be acquired and its price range. For example, if the property to be acquired is described as a detached house, you are free to follow a 20-unit building through another real estate agent. If the acquisition parameters limit the contract to real estate in a particular county and you decide to buy in a neighboring county, you are not bound by the terms of your buyer brokerage contract. Think of it this way – if you want someone to have your best interest in mind, you should probably consider signing it. If you call the listing agent you met with an open house, they will help you, but probably with the best interest of the seller in mind.
(The duale agency and other forms of agent representation are a story for another day) You want to know that there is someone looking for you in this process, and that agent wants to know that you are also indebted to them – in the form of a buyer`s agency contract. The agreement usually lasts six months. However, some agents will apply for a full one-year contract, while others will agree on a 30-day contract.