A buyer`s agency contract is entered into between a real estate agent, also known as a „sales agent“, who undertakes to show a potential buyer properties for sale for a commission when a transaction takes place. The broker, known as the „buyer`s agent“, and the buyer enter into this agreement either on an exclusive or non-exclusive basis, before showing the buyer real estate. If the displayed property is listed with a separate real estate agent, the two agents usually agree to split the commission set out in the agreement between the listing broker and the seller. Non-exclusive agreement – the agent only receives a commission if he shows the buyer a good that the buyer buys at the end. In a non-exclusive agreement, the buyer has more protection than if the agent does not do his job, he is not paid. If a buyer has decided to terminate their contract, they must read and find all the termination clauses or withdrawal options of the contract. In most buyer agreements, there is no language that allows the buyer to unsubscribe from the contract. In addition, agents are discouraged from terminating the contract for fear of missing a commission that may be due if the buyer buys a property that has been shown to them. Exclusive Contract – Offers the agent protection that, regardless of the property the buyer purchases during the offer period, the agent receives a commission. In most cases, the buyer`s representative is paid at closing as a percentage (%) of the purchase price.
If there is a listing agent, it makes things easier because the parties „split“ the commission usually between the seller and their agent. .