Setting Clear Expectations With a Buyer-Broker Agreement
Whether you're a new agent or a seasoned professional, the shared goal among all real estate professionals is to offer expert guidance to your clients. As a Realtor®, you understand the importance of being a trusted source of knowledge and setting clear expectations to deliver maximum value.
Prior to presenting housing options and offering advice, a buyer’s agent should present a buyer-broker agreement that helps to outline clear key components of the transaction, such as service scope, fees, contract terms, client obligations, broker responsibilities, and dispute resolutions. This helps to establish guidelines, ensure clear expectations, deliver value, and inform clients of what to expect from the outset.
Let's dive into what a buyer-broker agreement entails and its importance for each stage of the transaction. What is a buyer-broker agreement? A buyer-broker agreement is a contract used mainly to set forth the terms and conditions signed by both the buyer and a real estate agent licensee before the buyer engages the licensee’s services. This agreement clearly outlines the terms of their working partnership, including the agent’s responsibilities, duration of the agreement, and commission.
Essential Elements of Buyer-Broker Agreements:
Protects both the licensee and the buyer to help avoid misunderstandings.
Presents an opportunity for Realtors® to provide clarity about their services and build trust.
Explains duties and obligations to Realtors® clients following the Code of Ethics.
Promotes transparency through upfront conversations where consumers can gain knowledge on services and discuss how their real estate professional will be compensated.
Key elements generally address the type of property, duties, termination clause, representation, compensation expectations, how commissions are paid, contract duration, and broker exclusivity.
Importance of Buyer-Broker Agreements:
In the real estate industry, this agreement plays a crucial role in establishing the rights and responsibilities of both parties by establishing terms and conditions, protecting the interests of both parties, building trust, and preventing misunderstandings.
Establishing a professional relationship from the beginning of each transaction with your client is important to ensure both parties understand their obligations and duties. This is also an opportunity to provide protection, clarity, compliance, and trust for you and the clients you serve.
Buyer-Broker Agreements are available in TransactionDesk and Form Simplicity.
By BeachesMLS Staff
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