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Ask The Agent: What Is a Buyer Agency Agreement? (US)

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  2. Ask The Agent: What Is a Buyer Agency Agreement? (US)

When a buyer and an agent enter into an agreement for the agent to represent the buyer in the purchase of a home, that agreement is called a buyer agency agreement.

The buyer has no obligation to continue working with the agent if the agent is not performing per the agreement. It is important for the buyer to make sure the right conditions are outlined in the agreement. A buyer agency agreement usually spells out the duties the agent has towards the buyer in finding and closing on a home. The buyer can participate in negotiating the terms of the agreement.

Buyer agency agreements have typical term lengths of 90 days but can be negotiated for any length. A buyer can specify the kind of property being sought so the agent keeps on track during their search. The terms of the agent responsibilities should also include negotiating on behalf of the buyer and making sure the sales transaction successfully closes.

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