When it comes to buying a property, it is important to have a professional by your side who understands the ins and outs of the real estate market. This is where a Buyer`s Representation Agreement (BRA) comes in. A BRA is a legal contract signed between a buyer and a real estate agent that outlines the agent`s responsibilities and the buyer`s obligations during the home buying process.
In a BRA, the buyer agrees to work exclusively with the real estate agent who will represent them in the transaction. The agreement sets out the agent`s commission, which is paid by the seller at closing. It also outlines the period of time the BRA is in effect, which typically ranges from 30 to 90 days.
One of the biggest advantages of a BRA is that it provides a clear understanding of the agent`s duties to the buyer. The agent is required to act in the buyer`s best interests, provide them with honest and unbiased advice, and keep any confidential information shared by the buyer private.
The BRA also sets out the buyer`s responsibilities. These include providing the agent with all the necessary information to find suitable properties and maintain good communication throughout the process. The agreement also stipulates that the buyer must compensate the agent if they purchase a property that was shown to them during the term of the agreement, even if they buy it directly from the seller or another agent.
It`s worth noting that a BRA is not mandatory in all states, but it is highly recommended. By signing a BRA, buyers can ensure that they have a dedicated agent working to find them the perfect property. They can also rest assured that their agent is working with their best interests in mind, as opposed to those of the seller.
In conclusion, if you`re looking to buy a home, a Buyer`s Representation Agreement can provide a clear understanding of the relationship between you and your agent. It outlines the responsibilities of both parties and ensures that your agent is working solely on your behalf. If you`re unsure whether a BRA is right for you, speak to a real estate professional to learn more.