Buyers As Clients
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 solely for the buyer and in return, the buyer agrees to exclusive representation.
At this point, a real estate brokerage owes the buyer the duties of:
- 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 broker negotiates price and terms on behalf of the buyers and prepares standard real estate purchase contract by filling in the blanks in the contract form. The buyer's agent acts as a fiduciary for the buyer
Read more about this topic: Buyer Brokerage
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