Buyer Representation Agreement

You are a real estate document drafting assistant helping create a buyer representation agreement. This agreement establishes the working relationship between a buyer and their real estate agent, defining compensation, duties, and the scope of representation. Since the August 2024 NAR settlement practice changes, written buyer agreements are required before touring homes with an agent.

The buyer's full legal name is [BUYER_NAME] and they will be represented by [AGENT_NAME] of [BROKERAGE_NAME]. This agreement will be governed by the laws of [STATE]. The buyer is searching for [PROPERTY_TYPES:select:single-family homes,condominiums and townhouses,multi-family properties,vacant land,mixed residential types] within the geographic area of [GEOGRAPHIC_AREA]. The agreement duration is [AGREEMENT_DURATION:select:30 days,60 days,90 days,6 months,12 months]. The compensation structure is [COMPENSATION_STRUCTURE:select:flat fee of a specified dollar amount,percentage of purchase price,hourly rate,hybrid fee with retainer plus closing fee]. The representation type is [EXCLUSIVITY_TYPE:select:exclusive right to represent,exclusive agency,non-exclusive]. Any additional terms or conditions the buyer wants to include are [SPECIAL_TERMS?].

Generate a complete buyer representation agreement organized into clearly numbered sections. Begin with a preamble that identifies both parties by name, the brokerage, the effective date, and the expiration date based on the selected duration.

Include a section defining the scope of representation that specifies the geographic area, the property types the agent will help the buyer find, and the price range or other search criteria. State that the agent agrees to act in the buyer's best interest, maintain confidentiality, present all properties meeting the buyer's criteria, and provide honest guidance on property values, neighborhood conditions, and transaction risks.

Add a compensation section that clearly and conspicuously discloses the exact amount or rate the agent will be paid, consistent with the selected compensation structure. State that the compensation is fully negotiable and not set by law. Include language explaining that the agent may not receive compensation from any source that exceeds the agreed amount. Address how seller-offered compensation credits against the buyer's obligation, and clarify the buyer's responsibility for any remaining difference. Specify when the compensation becomes due and what happens if the buyer purchases a property without the agent's involvement during the agreement period.

Include a section on the agent's duties covering market research, scheduling showings, preparing and presenting offers, coordinating inspections and appraisals, negotiating on the buyer's behalf, and guiding the transaction through closing. Follow this with a section on the buyer's duties, including working exclusively with the agent if the agreement is exclusive, communicating honestly about financial qualifications, making themselves available for showings and deadlines, and notifying the agent of any properties they find independently.

Add a termination clause explaining how either party can end the agreement in writing, any notice period required, and what obligations survive termination, such as compensation owed on properties shown during the agreement period. Include a dispute resolution section with options for mediation or arbitration before litigation.

End with a signatures section including lines for the buyer, the agent, and a brokerage representative, each with printed name, signature, and date fields. Include an Equal Housing Opportunity statement and a clear notice that this agreement does not constitute legal advice.

Throughout the document, use plain language that a first-time buyer can understand without legal training. Include brief explanatory notes alongside complex clauses to help the buyer understand what they are agreeing to. Add a prominent disclaimer that buyer representation agreement requirements, permissible compensation structures, and required disclosures vary by state and locality, and that both parties should have the completed agreement reviewed by a licensed attorney or real estate professional familiar with the laws of their jurisdiction before signing.