What is indicated by a 'buyer’s representation agreement'?

A buyer’s representation agreement serves as a formal contract that grants an agent the authority to act on behalf of the buyer in real estate transactions. This agreement establishes a fiduciary relationship, where the agent is obligated to represent the best interests of the buyer throughout the home buying process.

The significance of this type of agreement lies in its ability to outline the specific duties and responsibilities of the agent, as well as the expectations of the buyer. It typically includes provisions concerning the duration of the agreement, the commission structure, and any additional terms relevant to the buyer-agent relationship. This legally binding contract ensures that the agent has the buyer's permission to provide advice, negotiate on their behalf, and access pertinent information related to property transactions.

Understanding the nature of this agreement is crucial for buyers, as it ensures they receive dedicated support and representation while navigating the complexities of purchasing real estate.