07/22/2025
The Buyer-Broker Agreement is one of the more confusing changes in the real estate world that has happened in the last year.
It can be incredibly intimidating to sign a legally binding document when all you want to do is view some houses!
The Buyer-Broker agreement can be broken down into two main sections; the buyer-broker relationship, and the broker commission.
As far as the buyer-broker relationship, the contract outlines that the broker has a legal obligation to look out for the best interests of the buyer, and will represent them and is fully committed to them. It also means that the buyer is committed to working with that particular broker for the duration of the contract.
Commissions (how realtors get PAID) can be super awkward to discuss, but this is incredibly important as the broker needs to make sure they will be getting paid. The agreement outlines what their commission percent or lump sum will be, and that if the seller refuses to pay that commission that the buyer will pay their broker.
The good thing about these contracts is that they can be set for any amount of time, or for a specific property. The agreement could be for one day, one week, a year, or just one or two properties.
If you’re tentative about signing a Buyer-Broker Agreement, you’re not alone! It can be a weird conversation, but ultimately protects both parties.
Starting with a short term agreement, maybe for a week or just for a few properties is always a good option if you’re intimidated by the contract.
It’s not always fun to talk about commissions and contracts, but it’s a huge part of real estate, and protects everyone involved!
