What is Buyer Agency

What is Buyer´s Agency?

Buyers Agency Representation is designed to create a legal form of relationship between the real estate agent and the buyers. The licensee agrees to owe full fiduciary responsibility to the client/principal. Buyers Agency provides the buyer with representation without having to pay any additional cost.
Buyer´s Agency was established to protect the rights of the buyer and to provide the buyer with a form of representation which did not exist in Texas prior to the early 1990's. The buyers agent is compensated by the listing broker at the time of closing.
To see a copy of a Buyer Agency Agreement click here.
Remember, you might qualify for a complimentary round of golf at world famous Colonial Country Club if I am your Buyer Agent

Buyer's Representation Agreement

The main feature of a Buyer Agency relationship is that you, the buyer, is represented. Traditionally the buyer was never represented. All agents represented the seller and were working in his best interest. This is still the case unless you have your agent sign a Buyer Representation Agreement. If they refuse to sign it they are not your agent and are not working for you.
The agreement is solely intended to protect the rights of the customer and comply with the requirements of the Texas State Statutes. You are under no obligation at any time to enter into any agreement with a licensee without consulting with an attorney or before understanding the full intent of the law.
The agreement must have a beginning date and an ending date. The agreement must disclose the obligations of the agent to you, the client, as well as, any additional fees or cost, if any. The agreement will also specify an geographic area. If you are buying a house in Fort Worth and one in Houston you might want a different agent for each location.

Buyer Agency Q & A?

Q) Does the buyer pay the commission?
A) The commission is set in the listing agreement between the seller and the listing agent. In 99.9% of the cases the listing agent doesn't care who sells the house and is more than willing to work with a Buyer's Agent. Whether or not the seller and listing agent is willing to work with a Buyer Agent is set out in the MLS. Since the commission is spelled out in the MLS all parties are informed as to the commission.

Q) What if we want to look at a For Sale By Owner(FSBO) or new builder home?
A) When you sign a Buyer Agency Agreement you have the agent locked up and they are your representative no matter what you do. They will help you write the offer and negotiate in your behalf no matter who the seller is. A FSBO expects an agent to sell their home so they usually even advertise their desire to work with agents. A seller also expects to get market value for their house no matter what. Not using an agent will not save you money and it could cost you much, much more by not having expert assistance.