Who is Representing You?

All real estate agents work on behalf of the seller of a home and not the buyer. Yes, you heard that correctly. By law, all real estate agents, even the one showing you houses, work in the best interest of the seller. That is, unless a home buyer signs a Buyer Representation Agreement with an agent who will work exclusively on their behalf during a home purchase. Without it, under the law of agency, agents must pass on any information that may influence the home-buying negotiations to the sellers of the home that their customers are bidding on; even details that could jeopardize their bargaining position.

If you sign a Buyer Representation Agreement, your agent is bound to you with fiduciary duties (loyalty; obedience; full disclosure; duty to use skill, care and diligence; and duty to account for all monies) and he/she must protect your information. Their accountability becomes much higher as they have a further duty to answer questions you may not even know to ask. There is nothing in the Buyer Representation Agreement that states that you have to buy anything.

What it does state is that if you decide to purchase a home, you will use the brokerage named and they will be compensated for the service provided. You do not pay any commission as the buyer, so you have nothing to lose.

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