What Is a Buyer’s Agent Agreement?

A Buyer’s Agent Agreement is a contract between a homebuyer and a real estate agent that outlines how the agent will represent the buyer, how long the relationship lasts, and how the agent will be compensated. It formally establishes the agent’s duties and the buyer’s obligations during the home-buying process.

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💡 Why Buyer’s Agent Agreements Matter

A Buyer’s Agent Agreement protects both the buyer and the agent by setting expectations, outlining responsibilities, and defining how the agent will be paid. Many brokerages require buyers to sign one before showing homes.

  • Clarifies the agent’s duties (property search, negotiation, offer preparation).
  • Prevents misunderstandings about loyalty and representation.
  • Explains compensation — normally paid by the seller through the buyer broker commission.
  • Defines the length of the agreement (often 3–6 months).
  • Legally binds the buyer to work exclusively with that agent.

To learn how buyer brokers are compensated, visit: What Is a Buyer's Agent?

📌 What’s Included in a Buyer’s Agent Agreement?

While the exact terms vary by state and brokerage, most Buyer’s Agent Agreements include the following key elements:

  • Representation type (exclusive, non-exclusive, or designated agency).
  • Agreement length — usually a set number of months.
  • Agent responsibilities — searching listings, showing properties, writing offers.
  • Buyer obligations — working only with the agent, providing accurate information.
  • Compensation & commission terms.
  • Dual agency disclosures (if allowed in that state).
  • Cancellation conditions and early termination rights.

These agreements are legally binding and enforceable once signed.

🔎 Types of Buyer’s Agent Agreements

There are three main types of Buyer’s Agent Agreements:

  • Exclusive Buyer Agency Agreement — Buyer must work only with one agent.
  • Non-exclusive Agreement — Buyer may work with multiple agents.
  • Designated Agency Agreement — Brokerage assigns a specific agent to represent the buyer.

Most brokerages prefer exclusive agreements to secure loyalty and compensation.

❗ FSBO Warning: Buyer Agreements Can Affect Your Sale

FSBO sellers should know that many buyers are under exclusive agreements requiring their agent to be paid — even if the seller is not using a listing agent.

  • Sellers may still owe a buyer-agent commission even without using a listing agent.
  • Buyers may be restricted in negotiating directly with FSBO sellers.
  • Commission must be addressed clearly in the purchase agreement.
  • Misunderstanding the buyer’s contract can cause disputes or lost offers.

Understanding buyer representation helps FSBO sellers negotiate confidently.

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