What exactly is a buyer representation agreement?

Finding your ideal home is an exciting process, whether you’re considering a condo in the city or a brick house in the suburbs. For many potential buyers, the time between making the choice to buy and the day you get the keys to your new home is overshadowed by their anticipation of the exciting times that lie ahead. Every stage of the process requires you, as the consumer, to be aware and educated. When your agent asks you to sign a contract you don’t understand, such as the Buyer Representation Agreement (BRA), it might be difficult to put aside your hunt for the ideal window coverings.

This Agreement serves as a formal agreement outlining the terms of your dealings with the brokerage and the manner in which the agent will operate in your best interests. It defines the services your real estate agent offers and what they anticipate from you, including:

• Agent’s responsibility to the buyer and duties owed to them
• Agency relationships
• The scope of the agent’s duties

In order to make an offer on a house, homebuyers must sign a BRA while working with a real estate agent.

What are a BRA’s advantages and disadvantages?

You agree that your real estate agent will act as your representative throughout the home-buying process by signing a BRA.

Among the benefits are:

Representation: A BRA makes sure your real estate agent upholds the obligations outlined in your contract and acts in your best interests. Many aspects of the home-buying process, such as negotiating, inspecting, and paperwork, can be taken care of by them on your behalf.

Clarification – A BRA formalises your professional relationship by outlining exactly what you may expect from your real estate agent and what they can anticipate from you.

Negotiable – You can work out most of the details of a BRA with your real estate agent.

A BRA has several drawbacks such as:

Locked term: If a real estate agent is named as your representative, he or she will always be paid a commission if you buy a house throughout the agreement’s duration.

Exclusivity: You won’t be allowed to work with another real estate agent if you have an exclusive BRA. There are procedures you may take to end your contract with your present agent and hire another one if you are dissatisfied with them.

In what way BRA is displayed?

The agreement may be expressed verbally, in writing, or by implication, but it must finally be put to paper and signed by you in order to be protected for all parties.

When is the right time to sign a BRA?

The services offered, the associated costs, and the clarity of the written agreement must all be well discussed and understood before you sign anything. Before you start working with the real estate agent, a BRA is typically signed.

What will occur if you refuse to sign?

In addition to being fair and honest, the broker and salesperson are required by the Code of Ethics to safeguard and advance your best interests as a customer. Even if you have the option of choosing to be a client rather than a customer, be aware that there can be some changes in how you are portrayed.

How does multiple representation work?

When a brokerage acts as both the buyer and the seller of a property, it is said to have dual representation. Since there are no set terms of service for multiple representations, you should review the representation agreement before submitting any offers. Make sure you inquire about and feel comfortable with how it may affect the services offered to you because multiple representation must be agreed to in writing.

What does a holdover clause mean?

You can include a holdover clause in your BRA at your discretion. In other words, if you buy a house after a predetermined period of time—typically 30 to 90 days—that came to your notice during the BRA, you must still go through the agent to do so, and they will continue to get paid a commission on the home’s sale or lease.