A Buyer Broker Agreement outlines your real estate broker’s duties and responsibilities to you as a buyer. The agreement will spell out the nature and price range of property you are looking for as well as the geographic area. It also defines the broker’s source and amount of compensation, duration of the agreement and any other mutually agreed upon terms.
So far so good. However, this agreement can also preclude you from using another broker in the event that you are not happy with his/her performance. You are contractually bound and have to meet the requirements of the termination clause in order to be released from the agreement.
While the intent of this document is well founded on the premise that if a broker expends his/her time and resources in pursuit of your objectives, compensation will be received. There have been many instances where brokers have been engaged in an all-out pursuit of a property and then when it came to writing a Purchase Agreement, buyers used their second cousin or a friend to write it up. In spite of this risk, all of us at Dreamcatcher still prefer to earn your loyalty as opposed to contracting it.
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