What is a buyer's agency agreement?

A buyer's agency agreement is fundamentally a contract that establishes representation for a buyer in a real estate transaction. This type of agreement outlines the responsibilities of the real estate agent working on behalf of the buyer and the expectations from both parties. It ensures that the agent is obligated to act in the best interests of the buyer throughout the purchasing process.

The agreement typically includes details about how the agent will help the buyer search for properties, negotiate offers, and navigate the closing process. It also often delineates how the agent will be compensated, either through a percentage of the purchase price, a flat fee, or through payment from the seller.

Understanding this agreement is crucial for buyers, as it provides them with dedicated representation and helps to clarify the agent's role. By having this formal arrangement, buyers can feel confident that their interests are prioritized during negotiations and other stages of the transaction.