As a buyer, one of the first documents your agent will ask you to sign is the Buyer Agency Agreement, AKA the Buyer Exclusive Representation Agreement – or something along these lines. I typically refer to it as the BA or the Buyer Agency, but note that other agents may use different names due to the lack of a standardised term.

The Buyer Agreement is a legal agreement between you (and any co-buyers) and the brokerage holding your agent’s license (real estate agents cannot work alone; they must work under a broker, or be a broker themselves). Brokerages have their own BAs, though they may be remarkably similar to others, so we can’t go over specific details of any one agreement here. However, we will address some broad concepts and answer common questions about the Buyer Agency Agreement.

Quick Example: If the max commission on the Buyer Agency Agreement is 2.5% to the buying brokerage, your agent cannot charge you or the seller 3% on a transaction – even if the seller is offering it. However, your agent can write an offer with the commission at 2%, as long as your agent is happy to provide their best services for that amount.

The compensation clause(s) in the Buyer Agent Agreement specify if the buyer must pay the buying side commission when the seller cannot or will not. (Hint: No one likes working for free.) And it should cover what happens if the seller is offering to pay more than the maximum amount stipulated in the BA. It should also cover the concept of procuring cause, which means that your agent is due the commission on a purchased property if they exposed you to it or worked with you on it first.

Obligations of the Buyer
The Consumer Guide to Agency (CG2A), which legally must be presented to potential clients on the first substantive meeting, outlines agent and brokerage responsibilities to clients, though the BA may repeat them if the brokerage desires. But the Buyer Representation Agreement will cover the obligations of the buyer to the brokerage. Keep in mind, real estate is a highly regulated – and competitive – industry, so you shouldn’t expect anything too severe.

Fair Housing Statement
One of the first things future agents learn when studying for their license is the centrality of Fair Housing to all things real estate, regardless of the party you represent. There is a clear set of regulations governing fair housing at the national level. The State of Ohio, as well as some counties and cities, have additional rules or protected classes. While your agent should know these inside and out, some home buyers may not have much exposure. As agents, we want you to know, and we take it seriously. You will find Fair Housing statements in many places, including the BA.

Termination of the Agreement
In an ideal world, you and your agent will work together to get you into a great home within the period specified in the agreement. Often, the BA is just left to lapse naturally, or no property is purchased, and the agreement expires. But you are not required to work with your agent if you no longer wish to. (That goes both ways, by the way.) This part of the Buyer Agency Agreement will tell you what to do to dissolve the relationship legally.

There may be other clauses included on the BA your agent uses, and you should always ask if you do not understand anything in the document – preferably before you sign it. I appreciate when clients review documents thoroughly and test my knowledge. I would rather my clients, as well as co-broke and their clients, understand their rights, the contingencies and the constraints at the very beginning; surprises can unravel transactions quickly, and that usually serves no one.

You can. If you want your agent to work for exactly 33 days, you can request exactly that. If you only want to pay 1% commission, you can request that too. But, the agent doesn’t need to accept those terms; I know my time and expertise are worth something, and I have a minimum threshold. I don’t know a single agent who would accept inherently unsustainable conditions, but you can try. On the other hand, I will never let my commission stand in the way of a buyer getting into a home they are in love with, and as long as I have enough time to show them that property.

Legally, your agent cannot open a door without an executed (signed by all parties) Buyer Agency Agreement. Legally, your agent cannot open a door for you without an executed (signed by all parties) Buyer Agency Agreement, and in principle, the best time to sign the BA is as soon as possible, before sending through possible properties to look at. Without it, your agent is walking a skinny line legally, and that never feels good. At the very latest, an executed BA is necessary before writing any offer can be drafted.

Previously, buying agents worked without the explicit requirement for a Buyer Representation Agreement, unless their brokerage called explicitly for it. Those days are over. Agents cannot open doors or write offers without a signed agreement – and that’s at the federal level, so there’s no wiggling out of it.

Clarity on commissions is one of the key reasons for the mandate. Regulatory powers (and the judicial system, should it come to that) want to know your agent informed you regarding commissions, and that they did not violate the stipulated agreement.

Agreements also address procuring cause (as mentioned above), ensuring that if you switch agents, the agent who initially introduced you to the property is still entitled to their commission. In this wildly competitive industry, it’s a security blanket, though I have yet to hear personally of an agent pursuing this route when a client moves on. But never say never in real estate.

Legally, your agent cannot work for you without a signed Buyer Representation Agreement. If they do, it is a violation of RE licensing laws, and if “caught”, they could face consequences ranging from fines to license suspension (dependent on severity, regularity, other violations, etc). I would never open a door for someone who doesn’t sign the BA; my license is too valuable.

Do it according to the termination clause in the Buyer Agency Agreement. And don’t stress over it. Most agents would rather that you are forthcoming than keep you locked into an arrangement that doesn’t work for you, for whatever reason. Yes, we have feelings and will feel a little sore, but it happens. Just rip the bandage off and move along.

1. Keep the existing agreement, and work with another agent in the brokerage (chosen by you or the broker).

2. Terminate the existing relationship (according to the BA) and sign a new one with your agent’s new brokerage when their license has transferred.

3. Terminate the existing relationship and choose a different option.

Buyer Agency Agreements protect consumers while also providing protections for agents. And, you are entitled to understand this legal document fully before signing it.