EstatePass
Buyer Representation

Buyer Agency Agreement

A written contract between a buyer and a real estate agent that establishes a fiduciary relationship and outlines the agent's duties, compensation, and the scope of representation.

Understanding Buyer Agency Agreement

Under the 2024 NAR settlement rules, buyer agency agreements must be signed before an agent can show property to a buyer. The agreement specifies the duration, geographic area, property type, and compensation terms.

Real-World Example

Before touring homes, a buyer signs a buyer agency agreement with Agent Smith specifying a 3-month term, 2.5% commission, and coverage for single-family homes in the Dallas metro area.

Visual Study Guide
Download and share these infographics to reinforce your understanding of Buyer Agency Agreement.
Exam Tips

Post-2024 NAR settlement, buyer agency agreements are MANDATORY before showing property. Know the required elements: duration, scope, compensation amount, and how compensation can be paid.

Related Terms

Fiduciary DutyNAR SettlementBuyer AgentCommissionDual Agency

Related Concepts

The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.

A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.

The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.

An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.

The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.

Frequently Asked Questions

Study This in Your State

Buyer Agency Agreement may have state-specific rules. Choose your state to study Buyer Representation with localized content:

Master This Concept

Practice with real exam questions and track your progress.

Get Started Free