ContractsCounsel Logo

Buyer Representation Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,494 reviews
Home Types of Contracts Buyer Representation Agreement

Jump to Section

Need help with a legal contract?

Post Project Now

A buyer representation agreement is a formal legal instrument establishing a working connection between a prospective home buyer and a real estate brokerage. It specifies the services to which the buyer is entitled and their obligations towards the brokerage. This document is an important document for laying down expectations concisely and clearly. It helps improve the quality of service the buyers wish to receive from the real estate brokerage. This blog discusses the benefits and types of the agreement mentioned above.

Benefits of a Buyer Representation Agreement

  • Being a Client and Not a Customer: One key distinction between clients and customers is a contractual arrangement. One becomes the realtor's customer and is obligated by contract to behave in their best interest when they sign a buyer's representation agreement with them. Without it, the realtor's legal responsibility would be to the seller. The realtors have a greater ethical duty to promote and protect the buyers' interests. Even if the realtor agent wants to help the buyer, they are not authorized to divulge certain information to the buyer unless the buyers turn into their clients instead of just a customer. It can be attributed to the complex laws in the real estate sector. Besides, the broker will be able to better represent the buyer in rounds of negotiations during the time of purchase if they have an agreement in place. The same and other services like broker’s price opinion cannot be legally offered to a mere customer. The contrast between a client and customer is so nuanced that the impact cannot be gauged from a macroscopic perspective, but it can have a major effect on the buyer’s real estate transaction.
  • Clear Outlining of Expectations: A buyer's representation agreement provides peace of mind by establishing the expectations the buyer and the realtor have for one another throughout the home-buying process. The chosen realtor will review the contract with the prospective buyer and all the duties they will carry out in that capacity. This easy step will eliminate potential misconceptions, allowing the buyer to move forward confidently. An explicit buyer's representation agreement sets out what a buyer can and cannot expect from the buyer's representative and what they anticipate from the buyer, which typically revolves around loyalty.
  • Streamlining of Service: Talking to five different persons about five different properties can be complicated, and if the buyer is unfamiliar with real estate jargon, comparing homes listed by various brokerages can be challenging. With a buyer's representation agreement, the buyer has a single point of contact for all inquiries. Your real estate agent will be able to help the buyer with their years of experience, thanks to the rapport you two have built. Before signing the contract, the buyer must meet their realtor in person. Like buyers, realtors will want to ensure a good fit exists before continuing.
  • Protection of Rights: The ethical standards laid down in various real estate laws hold the realtors to the highest standards of conduct through every step and process of the real estate transaction to protect the buyer's interest. While acting as the agent for the buyer, the realtor promises to prioritize and advance the buyer's interest as per the code of ethics. As the buyers are legally tied to the agents, they will have access to all the legal recourse that won’t be available to customers if they feel their rights were violated during the transaction. Even though these occurrences are uncommon, buyers will feel more secure knowing these regulations cover them.
  • Payment Guarantees for Agents: Realtors are compensated by the seller when a home is sold and only take commission-based jobs. The buyer should sign a buyer's representation agreement if they are dealing with an agent and are satisfied with their hard work to guarantee payment from the selling broker. If the realtor doesn't have a signed buyer's representation agreement after all their work, the listing business could decide not to pay them. It is the sole legal document that ensures a buyer's agent will receive payment. An agent will spend hours assisting the buyer and feel much more comfortable doing so if there is a contract in place so that they can be paid for their efforts, even though it may not impact the buyer's bottom line. The listing broker has often committed to paying the buyer's broker's commission. If not, the buyer can request that the broker not show them any such properties. Alternatively, buyers can still see the house, knowing that any offer must account for their broker's commission.

Types of Buyer Representation Agreements

  • Non-Exclusive Not-for-Compensation Contract: It is the least common and restrictive of all the buyer representation agreements. If the agent is a friend of the buyer or provides the service as a favor, this arrangement may be used. Both parties might still like a record of their union. The agreement states that the agent won’t be entitled to any compensation, allows the buyer to engage with another realtor while working with the first realtor, and permits both the buyer and the realtor to terminate the agreement as per their requirement.
  • Non-Exclusive Right-to-Represent Contract: This contract entails the payment of the agent; it ensures that the agent receives a commission for the brokering service provided and other compensation for the representation given to the buyer during the purchase, the buyer is free to engage with another agent and specific termination clauses.
  • Exclusive Right-to-Represent Contract: The most typical buyer representation contract offers the agent the most protection. Buyer's agents commit a lot of time and resources. This agreement aids in ensuring that the agent is paid for their efforts. In this kind of agreement, the buyer is prohibited from working with another agency while the agreement is in effect. Besides, it states that the agent will receive compensation despite the buyer finding a house on their own or by working with another brokerage firm, and it precludes the buyer from terminating the agent without a valid and justified reason. These agreements can be valid for a few months or a year.
Meet some lawyers on our platform

Zachary J.

181 projects on CC
View Profile

Sara S.

40 projects on CC
View Profile

Justin K.

27 projects on CC
View Profile

Morgan S.

6 projects on CC
View Profile

Key Terms for Buyer Representation Agreements

  • Realtor: One of the parties to the buyer representation agreement, which is usually a brokerage firm, a realtor acts as the agent for buyers by showing them properties for buying.
  • Buyer: Another party to the buyer representation agreement is interested in buying a property or house and takes the broker's help to secure a property without being duped.
  • Compensation: The amount mentioned in the contract as a payment to the realtor from the buyer.
  • Exclusivity: The degree of exclusivity can be established by both parties depending on the type of contract to ensure that there is no breach of the contract if the realtor or the buyer interacts with other realtors or buyers, respectively.
  • Termination: The conditions for terminating the agreement, like a breach of contract or mutual agreement, by either of the parties before the contract comes to a formal end must be entailed in the contract.

Final Thoughts on Buyer Representation Agreements

The buyer representation agreement must be approached with caution as it is drafted specifically for the security of the homebuyers. The terms and conditions of the agreement should be carefully constructed and reviewed before signing to prevent either of the parties from being bereft of their rights and obligations and eventually establish a strong connection with the agent. The essence of this document lies in the loyalty of both parties towards each other and provides an effective way for the buyer to communicate their needs to the realtor.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Buyer Representation Agreement Lawyers

Phocus L. on ContractsCounsel
View Phocus
5.0 (1)
Member Since:
September 16, 2021

Phocus L.

Free Consultation
Phoenix, AZ, USA
12 Yrs Experience
Licensed in AZ, CA
Georgetown University Law Center

G'day, my name is Michele! I work with startups, entrepreneurs and small/medium-sized businesses across the country in a wide array of industries. I help them with all of their ongoing, daily legal needs. This includes entity formation, M&A, contract drafting and review, employment, asset sale & acquisition, and business sales or shareholder exits. I'm half-Australian, half-Italian, and I've lived the last 20+ years of my life in America. I've lived all over the USA, completing high school in the deep south, graduating cum laude from Washington University in St. Louis, and then cum laude from Georgetown University Law Center. After law school I worked for the Los Angeles office of Latham & Watkins, LLP. After four intense and rewarding years there, I left to become General Counsel and VP of an incredible, industry-changing start-up called Urban Mining Company (UMC) that manufactures rare earth permanent magnets. I now work for Phocus Law where I help run our practice focused on entrepreneurs, startups, and SMEs. I love what I do, and I'd love to be of help! My focus is on providing stress-free, enjoyable, and high-quality legal service to all of my clients. Being a good lawyer isn't enough: the client experience should also be great. But work isn't everything, and I love my free time. I've been an avid traveler since my parents put me on a plane to Italy at 9-months old. I'm also a music nut, and am still looking for that perfect client that will engage me to explain why Dark Side Of The Moon is the greatest album of all time. Having grown up in a remote, and gorgeous corner of Australia, I feel a strong connection to nature, and love being in the elements.

David W. on ContractsCounsel
View David
5.0 (1)
Member Since:
September 27, 2021

David W.

Free Consultation
7 Yrs Experience
Licensed in WI
Marquette Law School

The Law Office of David Watson, LLC provides comprehensive and individualized estate-planning services for all stages and phases of life. I listen to your goals and priorities and offer a range of estate-planning services, including trusts, wills, living wills, durable powers of attorney, and other plans to meet your goals. And for convenience and transparency, many estate-planning services are provided at a flat rate.

Samuel R. on ContractsCounsel
View Samuel
5.0 (29)
Member Since:
October 2, 2021

Samuel R.

Free Consultation
Phoenix - Arizona
4 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I am currently General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing outside expert legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, employee retention credits, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Atilla B. on ContractsCounsel
View Atilla
5.0 (1)
Member Since:
October 4, 2021

Atilla B.

Free Consultation
Denver, CO
4 Yrs Experience
Licensed in CO, DC
American University - Washington College of Law

Atilla Z. Baksay is a Colorado-based attorney practicing corporate and securities attorney. Atilla represents clients in the negotiation and drafting of transactional (e.g. master service, purchase and sale, license, IP, and SaaS agreements) and corporate (e.g. restricted stock transfers, stock options plans, convertible notes/SAFE/SAFT agreements, bylaws/operating agreements, loan agreements, personal guarantees, and security agreements) contracts, in-house documents (e.g. employment policies, separation agreements, employment/independent contractor/consultant agreements, NDAs, brokerage relationship policies, and office policy memoranda), and digital policies (e.g. terms of service, privacy policies, CCPA notices, and GDPR notices). Atilla also reviews, and issues legal opinions concerning, the security status of digital currencies and assets. Following law school, Atilla practiced international trade law at the Executive Office of the President, Office of the United States Trade Representative, where his practice spanned economic sanctions enacted against goods originating in the People’s Republic of China valued at $500 billion. Afterwards, Atilla joined a Colorado law firm practicing civil litigation, where the majority of his practice comprised of construction defect suits. Today, Atilla's practice spans all corporate matters for clients in Colorado and the District of Columbia.

James David W. on ContractsCounsel
View James David
Member Since:
September 3, 2021

James David W.

Free Consultation
Raleigh, NC
7 Yrs Experience
Licensed in DC, NC
Harvard Law School

I graduated from Harvard Law School and worked first for a federal judge and then a leading DC firm before starting a firm with a law school classmate. My practice focuses on company formations, early-stage investments, and mergers & acquisitions.

Anna K. on ContractsCounsel
View Anna
Member Since:
November 12, 2021

Anna K.

Free Consultation
Miami, Florida
25 Yrs Experience
Licensed in FL
University of Miami

Anna is an experienced attorney, with over twenty years of experience. With no geographical boundaries confining her practice, Anna works on corporate, healthcare and real estate transactions. Anna brings extensive big firm experience, garnered as an associate in the Miami office of the world's largest law firm, Baker and McKenzie, and the Miami office of the international law firm Kilpatrick Townsend. Her areas of expertise include: mergers and acquisitions, initial public offerings, private placements, healthcare transactions, corporate finance, commercial real estate transaction and acting as a general corporate counsel. Anna is certified to practice law in Florida and was admitted to the Florida Bar in 1998. Anna is also a Certified Public Accountant. She passed May 1995 CPA Exam on the first sitting. She is fluent in Russian (native).

Clara D. on ContractsCounsel
View Clara
Member Since:
October 8, 2021

Clara D.

Free Consultation
20 Yrs Experience
Licensed in IL
University of Chicago

After graduating from The University of Chicago Law School in 2002, Clara spent eight years in private practice representing clients in complex commercial real estate, merger and acquisition, branding, and other transactional matters. Clara then worked as in-house counsel to a large financial services company, handling intellectual property, vendor contracts, technology, privacy, cybersecurity, licensing, marketing, and otherwise supporting general operations. She opened her own practice in September of 2017 and represents hedge funds, financial services companies, and technology companies in a range of transactional matters.

Find the best lawyer for your project

Browse Lawyers Now
Buyer Representation Agreement lawyers by city
See All Buyer Representation Agreement Lawyers
related contracts
See More Contracts
other helpful articles

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer


Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city