A buyer brokerage agreement formalizes the relationship between a buyer and realtor. It requires a start and end date, the terms of payment, and the duties and rights of both parties. The language in the contract may be intimidating, but it’s a helpful tool to clarify expectations.
If you’re buying an investment property, it may be a good idea to find a brokerage that handles property management as this will give you a smoother transition and enable you to continue working with someone you trust.
Can I Sign a Buyer Broker Agreement with Multiple Agents?
The Buyer Brokerage Agreement is a binding document between you and one agent. When you sign a contract with multiple agents, you may be opening yourself up to legal issues.
When is the Buyer Brokerage Agreement Signed?
After you find a realtor or agent to work with, they will ask you to sign the agreement. Signing this document tells the agent that you’re serious about purchasing a home and about hiring them to help you.
How Does It Work?
When you first meet with your real estate professional, they’ll review the buyer broker agreement with you. They may ask you to sign it electronically, which is an easy way to distribute final agreements to all parties.
Plus, it’s typically as safe and secure as signing physical copies. Other agents may prefer to get signatures on physical copies that are later sent to all parties concerned.
What if I Also Need Property Management?
The property management agreement is a different contract. Your property manager or real estate professional requests this prior to taking over the management of a commercial building.
A property manager handles day-to-day affairs, such as securing rental clients, executing leases and collecting rents. The buyer broker agreement pertains to the sale of residential property.
There’s nothing to be concerned about as long as you read and understand the buyer broker agreement prior to signing it. As mentioned, this document protects the buyer as well.