WHAT IS A REAL ESTATE BUYER’S AGENT?
Using a Buyer’s Representative Offers the Consumer Many Benefits
A real estate Buyer’s agent represents the consumer who is purchasing the property in the real estate transaction. This REALTOR® owes full fiduciary responsibilities, duties and loyalty to the real estate Buyer. The Buyer’s agent works for the Buyer client and has the clients best interests in mind throughout the entire real estate transaction process.
The REALTOR® is compensated by the Seller of the property through a negotiated fee between the Buyer’s and Seller’s sales representatives based on the selling price of the real estate property. In some cases, the Buyer can select to compensate the REALTOR® directly and in doing so, the selling agent forgoes receiving any commission from the seller in the transaction. It is important for the consumer to discuss the Buyer agent’s compensation in the initial interview.
In many cases, it is recommended that the consumer and Buyer agent agree to the terms of compensation prior to viewing real estate properties and sign a written agreement based on these terms. This agreement should spell out the responsibilities of both parties throughout the real estate transaction. It is important to note that in some provinces, legislation has been enacted to protect the buyer to the point that absent a written agreement, the agent represents the buyer throughout the real estate transaction.