One part of the buying process that sometimes catches purchasers off guard is their real estate agent’s request for them to sign a document called “Exclusive Right to Represent Buyer Agreement.” At this point, some buyers will hesitate. This is an understandable reaction, since the buyer agreement is an unfamiliar document to many.
Did you know that REALTORS® in Virginia are legally and ethically required to enter into written agreements with buyer clients prior to providing real estate services? The purpose of this requirement is to protect consumers by disclosing the nature of an agent/buyer client relationship, which is called buyer agency. Once an agent provides certain services to a buyer, courts have ruled that a buyer agency is created, whether or not a written buyer agreement is ever actually signed. This imposes certain obligations upon the buyer, so it is in the buyer’s best interests to be informed of what those obligations are prior to getting involved!
The written buyer agreement clarifies several important points, including:
- Who the clients are.
- What type of property is being sought, and where.
- How long the agreement is in effect.
- The agent’s obligations to the clients.
- The clients’ obligations to the agent.
- What the agent’s compensation will be, who pays it, and when it is due.
- Circumstances under which the broker or agent may represent both parties in the transaction.
Pursuant to new National Association of REALTORS® requirements, buyer agreements have to be signed before agents begin showing properties, providing professional opinions about specific properties, and negotiating contracts.
Without the clarity of a written buyer agreement executed at the appropriate time, buyers could find themselves unwittingly committed to certain terms of a buyer agency. Your REALTOR® can explain this simple document and negotiate a buyer agreement with you that best fits your needs.
