A Buyer Broker is a real estate broker who specializes in representing buyers. Unlike a seller broker or conventional broker, the buyer broker has a fiduciary duty to the buyer, because the buyer accepts the legal obligation of paying the broker. The buyer broker is obligated to find the best property for a client, and then negotiate the best possible purchase price and terms. Buyer brokerage has gained a significant amount of respect in recent years, since the National Association of Realtors has changed its code of ethics to accept this designation.
What is a buyer broker agreement? Some real estate agents require buyers to sign a buyer broker agreement to ensure the real estate agent's commission and formalize the buyer/agent commitment. The buyer broker agreement guarantees the real estate agent's compensation for the real estate purchase even if the buyer uses another real estate agent. Should you sign a buyer's broker agreement and how can you cancel a buyer broker agreement? Watch this Expert Real Estate Tips segment to learn more about buyer broker agreements.