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Buyer Agreements | Real Estate Agents

When a home buyer hires real estate agent services, he also signs buyer broker agreements that precede the purchase agreement. The function of this broker agreement or buyer representation is to make clear that real estate agents is representing the home buyer. There are many kinds of buyer agreements prevalent in the modern world, of which three buyer broker agreements are the oft used.


Exclusive Right for Representation

As the buyer broker agreement states clearly, this agreement binds the buyer to hire real estate agent services or broker exclusively. He can, under no circumstance, be represented by more than one agent or broker. Contact your trusted real estate agent.

However, as a buyer you can demand the right to single agency and can negotiate the commission. If the other party (which might be the seller) decides to pay the commission, the buyer will be unaccountable for the commission payment. If the home seller decides to pay more and the fact is disclosed, the broker or the agent is entitled to claiming a higher commission.

In such a case, it won’t be regarded as a breach of contract as the commission fee is negotiable

A non exclusive agreement will last for a couple of months. But exclusive terms such as the one described above will run from 3 months to a year. The buyer will have to pay the real estate agent services or the broker a commission if he purchases a home introduced by the broker or agent.

The mortgage brokers Adelaide has the power of negotiating deals with unrepresented home sellers under the exclusive representation contract on behalf of the buyer. In cases like these, the total sale price includes the broker’s commission and the buyer has to cough up money for this commission.

The buyer may pay for this commission through financing. When a buyer opts for exclusive representation, it also implies that the real estate agent or broker works only for the buyer and acts in his interest solely. He is basically employed by the home buyer.

How to terminate the contract

It is best to avoid going into a contract with real estate agent services providers who will not agree to a mutual termination if requested. The agreement must specifically mention when and on what ground can the contracted be terminated by either side. In case you have decided to terminate a contract with your real estate agent, it is best to seek legal advice before going ahead. You may be required to pay termination fees or penalties for cancelling the contract before the end of contract date.

You can ask the agent to cancel the property’s listing and if he/she refuses, contact the broker and request a termination. In case the broker refuses, request him/her to recommend another real estate agent. In many cases, just the threat of going for legal action prods a broker into accepting a termination.


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