A buyer representation agreement is a contract between a homebuyer and a brokerage that formalizes the agent's duty to represent the buyer's interests. It defines the scope of services, the duration, the geographic area, and how the agent will be compensated.
The agreement establishes that the agent owes the buyer fiduciary duties such as loyalty, confidentiality, and full disclosure. It clarifies expectations for both sides and can specify whether the buyer's agent is paid by the seller, the seller's broker, the buyer directly, or a combination.
Since recent industry changes, written buyer agreements have become standard practice before touring homes in much of the United States. Buyers should read the compensation and termination terms carefully before signing.