What is a buyer representation agreement?

The buyer representation agreement outlines the agent's scope of work, including contract duration, services, and compensation, ensuring you know the services and costs upfront. This new law mandates greater transparency, requiring buyers to sign a representation agreement before viewing properties. It ensures you have a clear understanding of the relationship and expectations with your agent.

Navigating the Buyer Representation Agreement

Before we start exploring properties together, we'll need to sign a buyer representation agreement. This is a new rule designed to ensure you're fully protected. There are a few different versions available, tailored to fit your unique situation. Don’t worry—I’ll be right by your side to help you choose the option that best suits your home-buying journey.

Single Property Showing Agreement:
This agreement is for when you want to view just one specific property with me. It doesn’t require you to commit to working with me beyond that property. It’s a simple way for us to see the property together and decide if we’d like to work together moving forward.

PSRA:

This agreement allows you to schedule viewings of up to three properties with me, whether through a private tour or by attending open houses in the area. This also gives us more time to develop our working relationship and ensure we find the perfect home for you.

Exclusive Buyer Representation Agreement:
With this agreement, you choose to work exclusively with one real estate agent or brokerage throughout your home-buying process. The agent will represent your interests in all transactions, and you won’t be working with other agents.

Written Agreements:

Buyer representation agreements must be in writing. Oral agreements are no longer sufficient for formal representation, ensuring clear and enforceable terms between the buyer and their agent.

Duration and Termination:

The law requires that the duration of buyer representation agreements be clearly defined. Additionally, the agreement must outline the terms under which either party can terminate it, including any notice requirements and potential penalties. You have the right to cancel this agreement at any time by providing written notice to your agent. This ensures you remain in control of the buying process and can make adjustments if necessary.

Why Is This Important?

The Buyer Representation Agreement is designed to protect you as a buyer. It ensures that you have a dedicated professional advocating for your best interests and providing expert guidance throughout your home search and purchase.

Important Reminder: Avoid Signing Multiple Agreements

It's crucial to be mindful of not signing multiple Buyer Representation Agreements with different agents for the same property. Doing so can inadvertently bind you to multiple commissions, which could complicate your transaction and increase your costs.

Buying a home is a major decision, both financially and emotionally. First-time buyers may be excited but overwhelmed, while move-up buyers might need a refresher. The process is complex, and the market is competitive, so having a trusted advisor is crucial. The listing agent solely represents the seller, so it's crucial to have your own representation to safeguard your interest.