The Buyer-Broker Agreement From A to Z
Buying a home is a big deal on its own but especially when you need to deal with a sea of contracts and legal documents or terms that you don’t understand. You don’t have to worry, though! We’ll break down all you need to know regarding this matter.
Establishing a business contract with a real estate agent is a good idea, and the buyer-broker agreement is a perfect way to do it. Knowing what to include in the agreement and how to create it on your own is not always that easy, so we came up with a guide that will make creating one a piece of cake!
What You Should Know About the Buyer-Broker Agreements
The buyer-broker agreement is used to protect both you (the buyer) and the real estate agent who is representing you. The broker will assign a real estate agent you will work with, and the agreement will outline everything that the agent will do for you.
If you, as a buyer, aren’t satisfied with the agent’s work or anything else, you can ask the broker to assign you a new agent.
What Should Be Included in the Buyer-Broker Agreement?
You have to cover all the important points when creating a buyer-broker agreement by yourself. The templates found online are usually incomplete and unreliable, so we present you with every crucial point you have to state in your contract:
- Term length
- Representation and exclusivity
- Property description
The duties and responsibilities that your agent should honor have to be clearly stated in the first section of your buyer-broker agreement. You can include the tasks like:
- Showing you properties
- Explaining the procedures and documents
- Helping you write and send property offers
Think about the tasks and duties that will suit your needs the best, discuss them with the agent, and state them in the document.
After assigning the duties to the agent, you should decide how long you want the buyer-broker agreement to last and specify it. Keep in mind that during this time, both you and the agent will have to honor everything that is laid out in the contract.
If either you or the agent feels like the agreement isn’t working out, establish how the agreement can be terminated. Include the details on how much notice the other party has to give you, as well as the amount they will have to pay you in case they skip out on the advance notice.
Think about the compensation types and decide what you want your agreement to include. Either retainer fees or payment is used as the means of compensation. Choose the one you want and explain it in the agreement.
Pick one of the two types of representation:
- Designated representation
- Dual representation
The first one means that the agent shows you properties listed by other agents from their real estate agency.
Regarding the dual representation, your agent will represent both you and the seller and show you only the properties that the seller listed.
You should also choose whether you want an exclusive or non-exclusive agreement and include it in this section. With the exclusive agreement, you would be able to work only with your agent, while with the non-exclusive, you can also collaborate with others to buy a property.
At the end of your agreement, elaborate on the type of property you are looking for. Include all the specifics you want, and mention the price range.
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The last step is having the parties involved sign or notarize the document, and voila—your contract is finished!
We help you with an abundance of contracts and agreements! See the list below for the info on what legal docs our app can assist you with:
|Real Estate Contracts||Other Contracts|
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