Buyer brokerage

With the increase in the practice of buyer agency in North America, especially since the late 1990s in most areas, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "buyer agency agreement" not unlike the "listing agreement" between brokers and sellers (often referred to as a sellers agency). The real estate licensee, upon entering into a written agreement with a buyer, agrees to work for the buyer and in return, the buyer agrees to representation. At this point, a real estate brokerage owes the buyer the duties on • Loyalty to the buyer by acting in the buyer's best interest. • Confidentiality by not disclosing facts that could influence the buyers ability to negotiate the best terms. • Disclosure to other parties in the transaction that the licensee has been engaged as a buyer's agent. The agent who represents a buyer will assist in locating a property, evaluate values, negotiate the price and terms on behalf of the buyers, prepares the standard real estate purchase contract and necessary addenda, and coordinate the closing. Agents may also assist the buyer in coordinating necessary inspections, negotiating any needed repairs, and facilitating the transaction by working with the lender, listing agent, title company, and in some areas a real estate attorney. The buyer's agent acts as a fiduciary for the buyer. ==Buyer agency agreements==

Like the listing agreement with sellers, the agreements with buyers must have a starting and ending date, and they must specify how the buyer's broker is to be paid (by the seller or by the buyer). In addition, it should spell out the duties and obligations of all parties. The agreement should also specify how a conflict of interest will be handled. A conflict of interest can occur when a buyer represented by a real estate brokerage becomes interested by a seller who that firm also represents. The commission to be paid to the Buyer's Agent in the Buyer Agency Agreement, though ultimately the Buyer's obligation, is generally offset in whole or in part against the share, or "co-op", commission offered by the Listing Agent through the Multiple Listing Service ("MLS"). An exclusive buyer agent is a real estate agent who works for a company that does not ever represent sellers in real estate transactions. Exclusive buyer agents (and their clients) avoid the conflict of interest of working with an agent who promotes their listings or their firm's listings. It is beneficial to a buyer to have representation because the agent is responsible for acquiring information on the property and advising the buyer based on that information. Without an agreement, the agent may not have an obligation to work with the buyer's best interests in mind. == See also ==