Exclusive Buyer Agency Agreements: What are they and How do You Benefit?

Home Buying

Aug 21

If you are unfamiliar with an Exclusive Buyer Agency Agreement, now is the time to learn about it! Many changes are coming to the Real Estate industry, the first of which went into effect on August 17th, 2024 and a lot of them revolve around this specific agreement. Lucky for you, you have me and the rest of the team at TREO to guide you through this time, so you are in great hands!

An Exclusive Buyer Agency Agreement is a contract between a home buyer and a real estate agent that commits a buyer to work with their Realtor exclusively to search for and put in offers or go under contract on properties for a set period of time. These agreements offer many benefits to buyers, including, but not limited to:

The agreement protects the buyer by highlighting the duties and responsibilities of the agent to the buyer.
Agent prioritizes the search for the best property for the client and negotiating terms in favor of that client.
Ensures that the agent exclusively represents the interest of the buyer.
Minimizes the risk of conflict of interest, specifically when it comes to dual agency (agent representing both seller and buyer in a single transaction).

Some common questions among buyers…

Am I required to sign an Exclusive Buyer Agency Agreement in order for an agent to represent me in a transaction?

This is where the changes I mentioned above come in. Effective August 17, 2024, the National Association of Realtors requires real estate agents to have written agreements with buyers BEFORE showing them properties listed in the MLS and to work with a buyer as their buyer’s agent.

What does it mean to work with an agent?

There is a difference between marketing to or conversing with clients and representing their interests in their home search or sale. Some examples provided by NAR that would be considered “working with” a buyer are:

Identifying potential properties to tour
Arranging and executing tours of properties
Looking up comparables and providing pricing opinions
Handling negotiations for a specific property
Drafting and presenting offers on behalf of the buyer to the listing agent

These are just a few of the responsibilities of a buyer’s agent and buyers, will not have to sign an agreement unless they are asking for and expecting an agent to perform any of those duties. Additionally, buyers agents are now prohibited from performing said duties until the Exclusive Buyer Agency Agreement is executed.

Exclusive Buyer Agency Agreements are not a foreign concept. They have always been around, but this is the first time they will be mandatory for buyers and agents to work together. Some agents have always used them, while others never have. Either way, the pros outweigh the cons for both parties when entering exclusive agency. Buyers have the full commitment of the agent's time, knowledge, and resources, while agents also have the full commitment of the buyer to use them for any real estate purchase they decide to make within the timeframe specified in the agreement. Both the agent and the buyer can rest in the comfort of knowing that they are fully committed to one another.

If you have any questions or concerns regarding Exclusive Buyer Agency Agreements or anything else related to the changes happening this year, please reach out to me or any other trusted team member at TREO and we will be happy to help you understand your options. Our industry is evolving, and it is important that you know how these changes affect you as a buyer!