The Buyer–Broker Agreement: Why It Exists (and Why It Actually Benefits You)
At some point, every business relationship that moves forward—real estate included—is built on trust. You can draft a 100-page contract (and sometimes we do), but at the end of the day, both parties still have to trust that the other will perform as promised.
That’s the foundation of the exclusive Buyer–Broker Agreement.
This agreement requires mutual trust. The Buyer trusts the Broker to act competently and in the Buyer’s best interest. The Broker trusts the Buyer to engage seriously and honestly in the process. The agreement simply puts those expectations in writing—and does so in a way that protects both parties.
What the Buyer–Broker Agreement Actually Does
At its core, the Buyer–Broker Agreement spells out the duties, obligations, and expectations of both the Buyer and the Broker. And make no mistake: the obligations imposed on the Broker are substantial—and they are overwhelmingly designed to protect the Buyer.
Duties of the Broker
By entering into a Buyer–Broker Agreement, the Broker agrees—both by law and by contract—to the following:
- Fiduciary Duty
All licensed real estate brokers owe their clients a fiduciary duty. That means the Broker must place the Buyer’s interests above their own, act with loyalty, and avoid self-dealing. Violating this duty can result in disciplinary action or even loss of license. - Duty of Competence
If a Broker is careless, uninformed, or incapable of properly performing their role, they are in breach of their fiduciary duty. In plain terms: “I didn’t know” is not an excuse. - Duty to Devote Time and Resources
The Broker must actively invest time, effort, and professional resources to help the Buyer locate and acquire a suitable property. - Duty to Provide Guidance
This includes advising on pricing, market conditions, strategy, negotiations, and process—not just opening doors. - Duty of Disclosure
The Broker must disclose all material facts that could reasonably affect the Buyer’s decision to purchase or not purchase a property.
If a Broker fails in any of these duties, they may be subject to disciplinary action, civil liability, or license suspension or revocation. Without a Buyer–Broker Agreement, many of these obligations are weakened or not formally triggered at all—which is why the agreement is so beneficial for Buyers.
Duties of the Buyer
This is a bilateral agreement, meaning the Buyer also agrees to certain reasonable obligations:
- Not to simultaneously engage another Broker under a competing agreement
- To provide timely and relevant information to assist the Broker
- To reasonably view and consider properties presented
- To provide accurate personal and financial information when relevant
- To read documents provided by the Broker with reasonable care
- To promptly inform the Broker of any material change in circumstances that may affect the purchase
In short: good faith, transparency, and engagement. Nothing exotic.
“But What If I Get Locked In?”
This is the most common concern—and the most misunderstood.
Yes, Buyers worry about:
- Compatibility
- Competence
- Trustworthiness
Here’s the part many people miss: you can cancel the agreement.
These agreements include a termination clause specifically designed for this concern. If the relationship isn’t working, you can exit it. Most Brokers simply ask for short notice (typically 48–72 hours), and you’re free to move on.
In other words, the agreement is binding… until it isn’t.
So, If You Can Cancel Anytime, Why Bother?
Fair question. Here’s the answer:
- It signals to the Broker that you’re a serious Buyer—not a “just looking” tourist
- It formally binds the Broker to strict fiduciary and performance obligations
- It gives the Buyer legal and contractual recourse if the Broker is negligent or incompetent
- It reduces impulsive decisions about representation
- It clearly establishes the Broker’s fiduciary duty to you
When motivations are aligned, outcomes improve. It’s that simple.
Final Thought
Strongly consider engaging a Broker under a Buyer–Broker Agreement—but make sure it includes a clear and reasonable termination clause. That gives you peace of mind while ensuring you receive the full benefit of professional representation.
And one last thing—this isn’t optional anymore.
NOTE:
As of 2025, the law requires brokers to have a signed Buyer–Broker Agreement before they are even allowed to show a property. This change wasn’t designed to trap Buyers—it was designed to clarify roles, expectations, and accountability.
Done right, the agreement protects everyone involved—and that’s exactly the point.
To discuss this article or any other real estate topic, please contact us any time.
