What Is A Buyer Representation Agreement?

What Is A Buyer Representation Agreement?

In California real estate, a Buyer Representation Agreement (BRA) is a legally binding contract between a real estate agent or broker and a buyer. This agreement outlines the terms and conditions of the relationship between the buyer and the real estate professional, including the scope of services, the duration of the agreement, and the compensation structure.

Here are some key components typically included in a Buyer Representation Agreement:

Scope of Services: The agreement will specify the services the real estate agent will provide to the buyer. This may include helping the buyer find suitable properties, scheduling property viewings, negotiating offers, and guiding the buyer through the closing process.

Duration: The agreement will specify the duration of the agency relationship between the buyer and the real estate agent. This could be for a specific period of time, such as 90 days, or until a particular event occurs, such as the purchase of a property.

Exclusive Representation: In many cases, the Buyer Representation Agreement will establish an exclusive agency relationship, meaning the buyer agrees to work exclusively with the designated agent or broker during the term of the agreement. This ensures that the agent is entitled to the agreed-upon compensation if the buyer purchases a property, even if the buyer finds the property independently.

Compensation: The agreement will outline how the real estate agent will be compensated for their services. This typically involves a commission paid by the seller of the property, which is then shared between the seller's agent and the buyer's agent. The commission structure and any additional fees should be clearly spelled out in the agreement.

Termination Clause: The agreement will include provisions for termination, specifying the conditions under which either party can end the agreement before its expiration date. This might include mutual agreement, completion of the transaction, or other circumstances outlined in the agreement.

Disclosure Requirements: The Buyer Representation Agreement may also include provisions requiring the real estate agent to disclose any potential conflicts of interest and to act in the best interests of the buyer at all times.

It's essential for buyers to carefully review and understand the terms of the Buyer Representation Agreement before signing, as it is a legally binding contract. Buyers may also want to consult with a real estate attorney if they have any questions or concerns about the agreement.

Let's Talk

You’ve got questions and we can’t wait to answer them.