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What is a Buyer’s Agency Agreement

The document a prospective buyer signs once she decides to work with a buyer’s agent at a particular brokerage. Each Multiple Listing Service (MLS) has a standard buyer’s agency form, but the brokerage the agent works for may also provide its own agreement listing the conditions of the relationship between the buyer’s agent, his brokerage and the prospective buyer. Prospective buyers sign buyer’s agency agreements to ensure that the brokerage and the buyer’s agent is compensated if a sale occurs. The length of the agreement varies, but usually lasts 3 to 12 months. Before signing a binding buyer’s agency agreement, the buyer should be sure that they want to work with the agent. Many buyer’s agency agreements require the buyer to pay the agreed-upon commission to the buyer’s agent even if that agent didn’t end up finding the buyer the home. Buyer’s agency agreements also list the conditions of a dual agency policy. Dual agency occurs when an agent represents both the buyer and the seller in the same transaction.