Buyer’s Agency – Understanding Buyer’s Brokerage
As part of a buyer’s brokerage relationship, you will receive the following service:
The real estate broker must act in the best interest of the buyer.
Disclosure of Known Material Facts
Examples include, but are not limited to:
- Relationships between broker and other parties
- Existence of other offers
- Status of earnest money
- Property’s market value
- Commission split with other brokers
- Known adverse material facts
Any discussions, facts or information that should not be revealed to other brokers and sellers are kept confidential between the buyer’s broker and the buyer, including knowledge of a purchaser’s willingness to pay a higher price or accept terms other than those being made in the offer. The broker has the responsibility of fair and honest dealings with all parties.
Accounting in Dealings
Prompt accounting for all monies or property received by the broker.
Negotiating Skills and Care
The broker provides information for the buyer to arrive at a satisfactory purchase price and terms. As a buyer’s broker, your broker will represent you and your interests in the purchase of your home.
Who Pays the Commission?
The seller has signed a listing agreement with his broker specifying a certain fee to be paid, and many times it has provisions for splitting that fee with the Buyer’s Broker.
The buyer can pay his or her broker a commission as set out in their written Buyer’s Broker Agreement. Oftentimes, a Buyer’s Broker Agreement will specify that the commission to the buyer’s broker will be paid by the seller if the seller has agreed to compensate a buyer’s broker, and by the buyer if the buyer chooses a property in which the seller is not offering to compensate a buyer’s broker.