Buyer Representation Disclosure
Definition
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.
Example
Before discussing property preferences, Agent Williams provides the buyer with a written agency disclosure form explaining the difference between buyer agency, dual agency, and transaction brokerage. The buyer signs acknowledging receipt.
Exam Tip
Know WHEN disclosure must occur — typically at first substantive contact, which means before discussing specific properties, finances, or motivations. Simply providing listing information or open house details is NOT substantive contact.
Related Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
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 Representation Disclosure and other buyer rep concepts.