Buyer Broker Duties
Definition
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Example
A buyer's agent learns that a property has a pending lawsuit over boundary lines. Even though disclosing this information might kill the deal (and the agent's commission), the agent must inform the buyer because of the duty of disclosure.
Exam Tip
Remember OLD CAR for fiduciary duties. The most commonly tested duty is DISCLOSURE — agents must reveal all material facts that could affect the buyer's decision, even if it means losing the sale.
Related Buyer Rep Terms
Buyer Representation Disclosure
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.
Cooperative Compensation
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.
Buyer Consultation
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.
Buyer Loyalty Obligation
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.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Buyer Due Diligence
The buyer's right and responsibility to investigate a property's condition, legal status, and suitability before completing a purchase, typically during a specified due diligence period.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply Buyer Broker Duties and other buyer rep concepts.