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When you buy your home, a real estate agent or seller may ask you to sign a representation agreement. A representation agreement defines the nature of the relationship between you and the broker, including the broker or seller. You could end up owing commissions to multiple agents if you sign this type of agreement with more than one. Across the industry, different agents and brokers have their own versions of buyer`s agent contracts – damn, they might even call them different things. But whether your agent presents you with a buyer agent contract, a buyer representation agreement, or a buyer agent contract, there`s really no difference between them. Whichever version you come across, you just need to make sure you pay attention to these important details: don`t sign it if you don`t understand it Never sign an agreement unless you`re sure you know what it means, how long it will be in effect, and what the different clauses mean. This is one of the most important steps you can take to protect yourself. Take the time to read it carefully. Ask. Your broker or seller cannot provide legal advice, but they are familiar with these agreements and should be able to answer your questions and explain what the clauses mean and what impact they will have. Do not hesitate to seek legal advice at any time.

RECO Withholding Clause often receives calls from consumers about the retention clauses in agreements and their meaning. This is a legal issue and you should seek legal advice if you have any concerns. While there is no “standard” hold clause, a hold clause usually means that if a property is bought or sold within “X” days of the contract expiring and without the help of the broker or seller, there is always a commission to be paid to that broker or seller. An agent usually works with a buyer for a few weeks to several months or even longer. The agent`s efforts include presenting the buyer to lenders and obtaining loan pre-approval letters. Agents can email listings that meet the buyer`s requirements and call listing agents to determine property availability. You can`t quickly determine which agents list the most homes in certain neighborhoods by browsing online listings of properties for sale. But that would mean that these agents probably specialize in representing sellers, not representing buyers, and that`s not always ideal.

It is important to understand that any agreement you enter into and sign is usually with the broker rather than the agent (although some contracts may be with a particular agent within a broker). Like registration contracts, buyer-related brokerage contracts are usually bilateral. They describe the rights and obligations of both parties. They are essentially a promise in exchange for a promise. The buyer may have the right to dismiss the agent if the agent ultimately fails to perform. It all depends on the terms of the agreement. The buyer`s agency contracts often also deal with the terms of the dual agency policy of the brokerage firm and the agent. Dual agency occurs when a brokerage firm or agent represents both the buyer and seller in the same transaction. Redfin agents do not act as both the buyer`s agent and the listing agent in the same transaction, but you can still work with a Redfin agent to purchase a Redfin ad. Think of it this way: if you`re shopping in a store and a sales representative really took the time to help you find exactly what you were looking for, then they earned the commission on your sale.

Well, let`s say, after all the hard work of the sales representative, someone else collapses in the end, calls you and takes the commission of the first employee. It`s not okay, right? This is the kind of fun business whose contract a buyer protects a real estate agent. A purchase brokerage agreement, also known as a buyer representation agreement, is an agreement signed by a potential buyer that authorizes a licensed brokerage firm and usually a specific real estate agent of the brokerage firm to represent the buyer when buying a home. Different markets have different forms of standard agreement, as do many brokerage firms. Potential buyers sign purchase contracts to confirm their commitment to cooperate with a brokerage company or agent and to assure the company or agent that they will be compensated in the event of a sale. .