What is a “Buyer’s Agency agreement?” (and why does my agent want me to sign one?)

When you make contact with a real estate agent with the intent to buy a home, we will often ask about a buyer’s agency agreement. Specifically, we’ll often ask you to sign with us under this agreement.

What does this mean and why do we do this?

A buyer’s agency agreement is an agreement to use the agent to purchase a home. It does not obligate you to buy a home. Rather, it obligates you as the buyer to use that agent to do so, if they find you a home. An agent will ask you for this as it protects their time, too. We will work many hours to find you a home — this agreement protects that investment of time.

The agreement is not one sided, though. Far from it! For you as the buyer, it establishes a fiduciary relationship with your agent. Here in Colorado, the buyer’s agent:

“…works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer.” (Colorado Definitions of Working Relationships disclosure, 2013)

The specifics of the contract with your agent vary, from duration of the contract (how long will they be your agent for?) to the holdover period (if your contract expires but you buy a home the agent showed you within a certain timeframe afterwards) but the intent is to establish the aforementioned fiduciary duty and protect the interests of all parties.

If you have any questions, please give Rob a call at 719-440-6626.

DISCLAIMER: This post is informational only; it is not legal advice and I am not an attorney. Always consult an attorney if you have any legal questions.