A Buyer Broker Agreement is an agreement signed by a prospective buyer authorizing a licensed brokerage firm, and more specifically, Realtor from that brokerage, to represent the buyer when buying a home. The Buyer Broker Agreement is a commitment between the Realtor and the buyer to work together and to assure the Realtor will be compensated if a sale occurs. The terms of the agreement is negotiable.
Before signing a Buyer Broker Agreement, the buyer should be sure they want to work with the Realtor. Some Buyer Broker Agreements require the buyer to pay compensation to the buyer’s agent even if that agent does not find the home purchased.