Must know types of Buyer-Broker Contract

One need leading to the living of many people--a buyer deserves to know how BRA (Buyer Representation Agreement) works. One doesn’t walk out just buying his house. A buyer doesn’t sign BRA necessarily.

It’s just a sign of acknowledgement. Why to dig one’s own grave on their way to a pleasing destiny?

*Note: Unless the BRA is signed, broker cannot claim his commission.

              Most of the buyers opt for non-exclusive agreement.

(Non Exclusive) Not –for-compensation contract

*thumb rule – Buyer can work with more than one broker. Whether it’s searching for the property or buying it.

It’s the brokerage that’s getting paid. And broker cannot demand compensation from buyer. On the grounds of personal obligation, broker gets compensated.

(Non Exclusive) Right to Represent contract

I’m going to buy property with the help of another broker because it’s not chosen by the first one. In this case I’m not trespassing.

I’m certainly going to pay a forfeit, if the property is picked by the first broker.

*Thumb rule – Buyer cannot work with more than one broker.

Commission higher than the quoted one in agreement could be demanded if the seller comes forward with such a decision.

(Exclusive) Right to Represent contract

This is how almost every listing or brokerage agency works.  I think it’s quite feasible too.

*Thumb rule – Buyer cannot work with more than one broker.

It has a longer span, say dating up to a year. Also, the property chosen by the first broker couldn’t be sold or bought with the help of another one.

Why am I raving on BRA at tis’ hour?

It saves some disgrace. A perfect understanding between the buyer and brokerage/broker, and that shows how important it’s to sign BRA (Buyer Representation Agreement).

A declaration of commitment from both the parties basking on the consent in regards to terms and pact.

Also, in case of relaxing the commitment part a bit, buyers go for CSA (Customer Service Agreement).

No strict terms and conditions like that of BRA (Buyer Representation Agreement).It’s a general agreement that’s designed according to the core duties and responsibilities of brokerage agency.

Note: Brokerage is legally bound to decline a business at any point if BRA isn’t signed by the client.

However, relaxing commitment isn’t too good. That shows that the client/buyer isn’t going to take a chance of services as advice and concessions. 

Pictures courtesy: WWW