A Buyer Agency Agreement is a contract that is signed between a home buyer and their real estate agent when purchasing a home. The Buyer Agency Agreement outlines duties and obligations of the agent and also ensures that a buyer’s agent receives compensation when a sale occurs. Such agreements usually include a period of exclusivity (3-12 months) where the buyer promises to work exclusively with that agent.
Buyer agency agreements are most frequently used by agents to “lock in” a buyer to their services, and buyers should be cautious before making such a long-term commitment. In some states, a real estate agent is assumed to represent the interests of the seller unless such an agreement is signed.