It is common for many homebuyers to inquiry about their rights and protections under the Buyers Representation agreement. I think by reviewing and understanding the Buyers Representation, you can troubleshoot any potential miscommunication and/or confusion at the outset.
The Buyers Representation protects the Buyer and ensures that they get the best possible service from their Broker (ie. real estate agent) during the most expensive purchase in their life. The agreement consists of the following:
By law, all Brokers must explain the importance of agency to their clients. Agency discloses that every party (ie. buyer and seller) has an agent to solely represent their interests in a real estate transaction.
Property of Interest
This section specifies what type of property the Buyer is looking to purchase.
This section is rarely addressed but this agreement is a “partnership” between the buyer and real estate agent. If one party is not meeting their expectations then it will be difficult to find the PERFECT home.
-The Buyer will work exclusively with the broker.
-The Buyer will provide all of the necessary financial information to determine the buyer’s ability to purchase a home (ie. preapproval letter).
-The Buyer will not contact the Seller or Seller’s agent directly.
-The Buyer will not attend an Open House w/o disclosing they have an agent to prevent misunderstandings about liability and/or compensation.
The Broker (ie. real estate agent) has responsibilities and expectations to meet in order to find the Buyer a home.
-The Broker will assist the Buyer in acquiring a home.
-The Broker will represent the interests of the Buyer in all negotiations.
-The Broker will use their professional knowledge and skills to locate and present properties which meet the Buyer’s needs.
The Seller pays Broker’s compensation unless otherwise agreed upon between Buyer and Broker.
Hopefully you found this post useful! If you would like more information about Washington DC real estate, please contact Jason Trotman at 301-452-4767. If you’re new to DC, I’d especially like to extend a warm welcome. I value the opportunity to help my clients find the home that meets their needs and provide them with professional, reliable service.