Final answer:
A Buyer Representation Agreement is a contract between a buyer and a real estate broker, not a real estate salesperson, seller, or client. It outlines mutual responsibilities and assures the broker's commitment to the buyer's interests.
Step-by-step explanation:
A Buyer Representation Agreement is a contract signed between a real estate broker and a potential homebuyer. This legally binding document outlines the duties and responsibilities of both the broker and the buyer during the home buying process. The agreement is important as it formalizes the relationship, ensuring that the broker has a fiduciary responsibility to act in the best interests of the buyer, and in return, the buyer agrees to work exclusively with the broker during the property search and negotiation process.
The agreement typically covers key aspects such as the term of the agreement, the geographic area for the property search, the type of property sought, and any compensation the broker may receive from the buyer. It also includes consent for the broker to act as an intermediary between the buyer and the sellers they encounter during the search. By signing this document, both parties agree to a committed partnership in the quest for the buyer's new property.