When you’re going through the process of buying a house, it’s crucial to find the right broker for you. You want to find somebody that’s going to work hard to find you the right property, and also ensure that you make the most timely and best offer possible, so that you get the house of your dreams. Brokers work long hours to help their buyers achieve their goals, and it’s only fair to both the buyer and the broker, that both get a benefit out of their hard work. Enter Buyer-Broker agreements. Learn more about why this could benefit you in your house hunt.
What is it
A buyer broker agreement lays out the expectations of the buyer broker relationship. It clearly defines all of the services each party is expected to fulfill. This can save a lot of headache when it comes time to gather paperwork together and make an offer on property. This agreement clearly lets each party know what they’re legally responsible for.
Nonexclusive not-for-compensation contracts
This kind of agreement details the broker’s duties. It defines exactly what the broker’s obligations are to the home buyer, what the broker’s agent is expected to do. It also lays out what the buyer’s responsibilities are. The specific details of this contract can change, but it can mean that the buyer can retain more than one brokerage, and revoke a contract at any time.
Nonexclusive right-to-represent contracts
This agreement details the brokers responsibilities to the buyer, and what the buyer will be responsible for. It ensures that the broker gets compensation if they’re the broker to find the property that the buyer is interested in and eventually purchases. This ensures that a buyer can buy a home through any broker that they choose. It also protects a broker if they show a buyer a property, and then buyer turns around and puts in an offer on that property with a different broker.
Exclusive right-to-represent contracts
In addition to laying out the responsibilities of the buyer and the broker, this agreement ensures that the buyer is exclusively tied to one broker. This is the fairest agreement for brokers, as it ensures that all of the work they’re providing in showings, drawing up offers, and sales, goes to their credit. It means that at the last minute a buyer can’t go with another broker, without breaking the contract. It outlines the commission that the broker is to earn as well.
These contracts can be tricky. The contracts are put in place to ensure that both parties get what they want. A Bend real estate broker wants to earn commission on a property that they’ve shown or made an offer on. These contracts often prevent brokers from putting in lots of working showing properties and getting everything together for an offer, and then losing out on a sale in the last minute.