Buyer Broker Agreements

Once you've selected a buying agent to represent you, they will likely present you with a Buyer Broker Agreement (BBA, also known as a buyer broker contract). This certifies your partnership with the agent and spells out what sort of duties/tasks the agent will perform for you, while providing them the power to begin working in your best interests.

There are three variations of a broker agreement:

• Non-Exclusive, not for compensation
• Non-Exclusive, Right to Represent
• Exclusive Right to Represent

In a non-exclusive, not for compensation agreement, the broker does not receive compensation. The buyer may, at any time, work with other agents to locate properties, and can demand single agency. In a non-exclusive, right to represent agreement, the buyer may purchase property through another agent/broker, as long as the original agent didn't introduce it. The broker may receive compensation to the agent. An exclusive right to represent agreement is the most common contract presented. Under this agreement the buyer cannot use another broker/agent. The agent has the ability to negotiate with unrepresented sellers.

In all of these agreements, the agent represents the buyer's interest in the home-buying process. But most agents prefer exclusive, right to represent contracts. It protects the agent from potentially putting in work for their clients, only to watch them walk to another buying agent (or worse, deal directly with a selling agent). A good buying agent devotes a lot of time and effort to your search ? sitting down and discussing your "wish list," researching homes that match it, arraigning viewings, presenting the initial offer, handling the negotiation process that usually follows, and in general coordinating the home-buying process on your behalf.

The important thing to keep in mind is that no matter what type of agreement you sign with an agent, any commission fees are paid by the seller -- meaning your buying agent works for you free of charge!