Buyer brokerage (or Buyer agency as it is also known) is the practice of real estate brokers (and their agents) representing a buyer in a real estate transaction. In most states, until the 1990s, buyers who worked with an agent of a real estate broker in finding a house were customers of the brokerage, since the broker represented only sellers. A real estate broker is a party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy. ...

Today, if the buyer is working with a broker other than the brokerage which "lists" the property, he may choose to enter into a buyer-brokerage agreement to be represented. (In some cases where dual agency is permitted by law, even the listing broker may represent the buyer). If the buyer does not enter into this agreement, he/she remains as a customer of the broker who is then the sub-agent of seller's broker. A real estate broker is a party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell and buyers who wish to buy. ...

Buyers as clients

With the increase in the practice of Buyer Agency in the US, especially since the late 1990s in most states, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "Buyer Agency Agreement" not unlike the "Listing Agreement" between brokers and sellers. In this case, buyers are clients of the brokerage.

A real estate brokerage attempts to do the following for the buyers of real estate:

• Find real estate in accordance with the buyers needs, specifications, and affordability.
• Takes buyers to and shows them properties available for sale.
• When deemed appropriate, prescreens buyers to ensure they are financially qualified to buy the properties shown (or uses a mortgage professional to do that task).
• Negotiates price and terms on behalf of the buyers and prepares standard real estate purchase contract by filling in the blanks in the contract form. The buyer's agent acts as a fiduciary for the buyer.

The court of chancery, which governed fiduciary relations prior to the Judicature Acts The fiduciary duty is a legal relationship between two or more parties, most commonly a fiduciary or trustee and a principal or beneficiary, that in English common law is arguably the most important concept within the portion...

Buyer Agency Agreements

Like the listing agreement wiith sellers, the Agreements with buyers must have a starting and ending date as well as specifying how the buyer's broker is to be paid (by the seller or by the buyer himself). In addition, it should spell out the duties and obligations of all parties.

See also

• Real estate
• Realtor
• Estate agent (United Kingdom)

Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... Realtor is a U.S. registered trademark that identifies a real estate professional who is a member of the National Association of Realtors (NAR) and subscribes to its Code of Ethics. ... Estate agent is a United Kingdom term roughly synonymous with the United States term real estate broker, a business that arranges the selling, renting or management of homes, land and other buildings. ...

External links

• National Association of Realtors
• National Association of Exclusive Buyers Agents
• Real Estate Buyer's Agent Council website (REBAC)
• James Buyer Advocates, Australian Buyers Agents