Buying Agency Agreement: A Basic Guide

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A buying agency agreement is a legal contract between a real estate agent and a home buyer that outlines the terms of their working relationship. It is an important written agreement clarifying the relationship between two parties. Let us delve deeper and learn more about the important aspects of a buying agency agreement below.

What is a Buying Agency Agreement?

A buying agency agreement, sometimes called a buyer's broker agreement or a buyer representation agreement, is a legal contract used in real estate between a potential home buyer and the buyer's agent.

This agreement is used to protect both parties that sign the agreement. The home buyer is guaranteed that the agent will be committed to them and be held responsible for the work they do. The buyer's agent is expected to work with the buyer's best interests in mind.

The buyer's agent is ensured that they are not wasting their time with a potential home buyer who may leave and work with another agency. A buying agency agreement will provide a buyer's agent with some compensation for any time, effort, and expenses they expelled while working with a home buyer if they choose to purchase a property with a different agent.

Check out this article for more information about buying agency agreements.

Types of Buying Agency Agreements

There are three different types of buying agency agreements. These agreements must include an expiration date, a fair housing statement, a blockbusting statement, and a signature line for both the broker and the seller.

Below are the different types of buying agency agreements:

Buying agency agreements allow flexibility and negotiation so both parties can come to an agreement that suits them. Sometimes buyers choose to waive specific broker duties in an agreement called a flat fee listing or limited-service agreement. In this case, the buyer would complete a waiver of obligations statement that details the broker's duties they are waiving.

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What's Included in a Buying Agency Agreement?

The terms included in a buying agency agreement will vary based on the type of agreement and the needs of both the buyer's agent and the buyer. These agreements are flexible and able to be custom-tailored to fit the needs of each party.

Although the agreements vary, they should include the following basic terms and information: