What Is a Buyer’s Agency Agreement in Real Estate?

A Buyer’s Agency Agreement is a contract between a homebuyer and a real estate agent that outlines the agent’s duties, compensation, and exclusivity when representing the buyer during a property purchase. It formalizes the relationship and ensures that the agent acts in the buyer’s best interest throughout the process.

✅ How a Buyer’s Agency Agreement Works

  • The buyer agrees to work exclusively (or non-exclusively) with a specific agent.
  • The agreement specifies how the agent will be compensated — usually through a portion of the seller’s commission.
  • The agent commits to fiduciary duties like loyalty, confidentiality, and full disclosure.
  • It defines the agreement’s term and how either party can cancel it.

Buyer’s agency agreements protect both parties by clearly setting expectations and responsibilities before searching for homes.

💡 Types of Buyer’s Agency Agreements

  • Exclusive Agency: The buyer works with one agent but can find a home independently without paying commission.
  • Exclusive Right to Represent: The agent earns a commission no matter who finds the property.
  • Non-Exclusive Agreement: The buyer can work with multiple agents.

Agents typically prefer exclusive agreements, while buyers may negotiate flexible terms to maintain control.

📍 Buyer Agreements and FSBO Sellers

If you’re selling For Sale By Owner (FSBO), you may still encounter buyers represented by agents under a Buyer’s Agency Agreement. In those cases, the buyer’s agent expects a commission, usually offered through your MLS listing.

With Brokerless, sellers can list their property on the MLS for a flat fee and control how much buyer-agent compensation they offer — without signing a long-term contract themselves.