Buyer Broker Agreement (Non-Exclusive / Not for Compensation)
This agreement outlines the broker's / agent's duties and obligations to the buyer, agency relationships, broker scope
of duty and buyer obligations; it does not provide for compensation.
- Buyer may hire more than one broker / agent to locate property
- Buyer is not obligated to compensate the broker / agent
- Buyer has the right to demand single agency
Buyer Broker Agreement - Non-Exclusive, Right to Represent
The non-exclusive agreement outlines the broker's / agent's duties and obligations to the buyer, agency relationships,
broker scope of duty and buyer obligations; however, it does provide for compensation. It also removes the buyer's responsibility
to pay a commission if the broker / agent is paid by another party such as the seller.
- Buyer may purchase a property through another broker / agent, as long as the property is not a home introduced by the
first broker
- Buyer has the right to demand single agency
- The broker / agent can receive a higher commission than the negotiable fee stated in the agreement if the seller elects
to pay more and it is disclosed
Buyer Broker Agreement - Exclusive Right to Represent
This is the form that I use with my buyers. It is similar in scope to the non-exclusive form except for one major distinction:
the buyer has agreed to work exclusively with the broker / agent.
- The buyer cannot hire more than one broker / agent to represent her
- The commission is negotiable
- Buyer has the right to demand single agency
- The buyer is not responsible for the commission if another party (such as the seller) pays it
- The broker / agent can receive a higher commission than the negotiable fee stated in the agreement if the seller elects
to pay more and it is disclosed
While non-exclusive agreement terms may run for a month or two, exclusive agreement terms are typically anywhere from three
months to one year. If the buyer elects to subsequently purchase any property introduced to her by the agent, she will owe
the agency a commission. Exclusive representation gives the broker / agent the ability to negotiate with unrepresented sellers
(such as for sale by owners) on the buyer's behalf. In these instances, the commission is often added to the sale price and
then paid by the buyer to the broker as part of the financing. If the buyer is able to purchase the property at a substantial
discount through the power of the broker's / agent's negotiating ability, the broker / agent will have more than earned her
fee. Exclusive representation means the broker / agent is employed by the buyer and will work diligently on the buyer's behalf.
Termination
Ask the broker / agent if she will release you from the contract if you find that the relationship is not a good fit for
you or vice versa. While agents are not bound to release you, if they won't agree to this upfront, don't sign the agreement
with them. Professionals give personal guarantees that the customer will be satisfied. If an agent can't give you that guarantee,
the agent does not deserve your business.