What is the purpose of the buyer representation agreement?

The purpose of the buyer representation agreement is to outline the terms of service between the buyer and the realtor. This agreement is designed to create a mutual understanding of the responsibilities, expectations, and commitments of both parties throughout the home buying process. It typically includes details such as the duration of the agreement, the services the realtor will provide, and any obligations the buyer has, such as working exclusively with that realtor during the contract period.

While a buyer representation agreement does have legal implications, its primary focus is not solely on establishing a legal contract for home buying but rather on detailing the relationship and service expectations. The recording of the buyer's financial status could be part of the overall process, but it is not the central purpose of the agreement itself. Likewise, defining the realtor’s commission is only one aspect of the agreement and does not encompass the broader intent to outline services and responsibilities involved in representing the buyer.