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Buyer Agency Contract  Just as sellers and listing agents sign an agreement to achieve a specific goal (sell a home), buyers and their buyer agents can now sign an agreement which outlines the obligations of both parties working toward the goal of purchasing a home. Buyer's agents generally want a commitment from buyers before they undertake the work required to perform "due diligence" to help buyers identify a home of interest, determine property value, and negotiate the best price and terms for the buyers. Agents who provide buyer representation services without using a contract may be doing to disservice to buyers because they do not put in writing the duties and obligations the buyer can expect in exchange for their loyalty to the real estate agent. If something goes wrong, it will be difficult for buyers to have proof of what the agent had actually verbally agreed to do to help them buy a home. Buyers should not enter into an agreement with an agent until they feel satisfied that the agent will perform the services necessary to do a thorough search and provide complete advocacy for them. They should have a good understanding of what brokers' fees are due, how they are to be paid, and how to break the contract if things don't work out as they expected. Since commissions are generally included in MLS listed homes, the decision to use a buyer's agent should not require any additional money for the representation available to buyers. The common provisions of a buyer agency contract include:
- exclusive representation
- duration of agreement with provision for canceling the contract
- description of property sought
- compensation of broker
- protection period
- explanation of company policy of conflicts of other buyers
- obligations of the buyers (eg, be available for showings, obtain mortgage financing, etc.)
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