What is a Buyer/Broker Agreement?

What is a Buyer/Broker Agreement and why is it important for Buyers to sign this agreement with their Buyer’s Agent?

Much like a Listing Agreement where a Seller and a Broker/Agent enter into an agreement to sell property, the Buyer/Broker Agreement is an Agreement or Commitment for a Buyer and Agent to work together to purchase property. Like a Listing Agreement, a Buyer/Broker Agreement has a beginning and an end and also outlines the duties and responsibilities of both parties. These Agreements, like Listing Agreements, also outline the compensation that the Buyer agrees to pay to their Agent if a Seller is not offering compensation to Buyer’s Agents. Buyers should carefully vet their options when choosing a Buyer’s agent to work with…look for someone with experience in the area you are hoping to buy, an Agent in good standing with their local Association and State Licensing Board, and most importantly, an Agent that you mesh with on a personal level. You will be spending hours together and sharing personal information as needed. A bond of trust is vital!