Plano Real Estate and Buyer's Broker Agreements

Plano real estate buyers generally sign a buyer broker agreement with their Plano Realtors before writing an offer on a home. This buyer broker agreement spells out precisely that the Realtor represents the buyer only. This is also known as a “buyer representation agreement”. There are a variety of buyer broker agreements that are used throughout the United States. For example, we will review three most common types of buyer broker agreements, with most weight given to Exclusive Right to Represent because it's the preferred form for many Realtors use when selling Plano real estate and .

Buyer Broker Agreement / Non-Exclusive

This agreement outlines the Realtors duties and obligations to the buyer, agency relationships to all parties, Realtors scope of duty and buyer obligations; it does not provide for Realtor compensation for the sale of any .

·         Buyer has the right to single agency

·         Buyer may hire more than one Realtor to locate property

·         Buyer is not obligated to compensate the Realtor

Buyer Broker Agreement / Non-Exclusive Right to Represent

A non-exclusive agreement outlines the Realtors duties and obligations to the buyer, agency relationships of all parties, Realtors scope of duty and buyer obligations.  This type of agreement does provide for Realtor compensation. It also removes the buyer's responsibility to pay a commission if the Realtor is paid by another party such as the seller.

·         Buyer has the right to single agency

·         Buyer may purchase a property through another Realtor, as long as the property is not a home the first Realtor brought to the buyer

·         The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and as long as it is disclosed

Buyer Broker Agreement / Exclusive Right to Represent

This is a standard form that many Realtors prefer to use with their buyer clients. It is similar in scope to the non-exclusive form except for one major difference; the buyer has agreed to work exclusively with this particular Realtor.

·         The commission is negotiable

·         The buyer cannot hire more than one Realtor to represent them

·         Buyer has the right to single agency

·         The buyer is not responsible for the commission if another party pays it, such as the seller

·         The Realtor can receive a higher commission than the negotiable fee stated in the agreement if the seller elects to pay more and it is disclosed to all parties.

 A non-exclusive agreement may run for a month or two, exclusive agreement terms generally run anywhere from three months to a year. If the buyer elects to purchase any property introduced to her by the Realtor, they will owe the Realtor a commission. Exclusive representation gives the Realtor the ability to negotiate with unrepresented sellers (for sale by owners as an example) on the buyer's behalf. In these cases, the commission is typically added to the sale price and then paid by the buyer to the Realtor as part of the financing. If the buyer is able to purchase the property at a discount through the Realtors negotiating ability, the Realtor will have earned their commission. Exclusive representation means the Realtor is retained by the buyer and will work diligently on their behalf and have a fiduciary duty to that buyer client.

Termination of Buyer Broker Agreement

Ask the Realtor if they will release you from the buyer broker contract if you find that the relationship is not a good fit for you or and/or them. While Realtors are not bound to release you, if they won't agree to a termination upfront, don't sign the agreement with them find a Realtor that will agree to it. Professional Plano Realtors will give personal guarantees that the customer will be satisfied.