What is an Exclusive Buyers Agreement and Should You Sign It? Part 1
This article is written for Oklahoma buyers that are shopping for real estate, whether it's a home, land, ranch, commercial, waterfront, etc. etc.
You have decided that it's time to purchase.
You've already visited with a reputable lender and been at least pre-qualified for a loan, so you know how much you can afford.
When you come in contact with a real estate agent during the next few days, you may be asked to sign a Buyers Agreement.
So what is a buyers agreement and should you sign it?
First let's go over what a Buyer Broker Agreement is. Basically, it's an agreement between you, the buyer, that you are going to work, usually exclusively, through a specific real estate agent, to buy your property. It means that you are not going to call any other agents (you will expect your agent to do that) about properties. You will call your agent with any questions about any properties, or to view properties, etc.. all inquiries and information will be through your real estate agent.
Should you sign a Buyer Broker Agreement?
Well, really only you can decide that BUT let's talk about the details you might find in an agreement, then you can better make that decision.
The Oklahoma Real Estate Commission has designed and made available on their website a Buyer's Agreement that is often used by Oklahoma real estate offices. In Oklahoma, when signing a Buyer's Agreement, this would likely be the one that would be presented to you to sign, so using it as an example for specifics, let's go through this Oklahoma form, paragraph by paragraph. We'll break this into three posts to take the information in more bite size pieces:
- A Buyer Broker Service Agreement is an agreement (service contract) between you, the buyer, and a real estate broker.
- You, the buyer agree to purchase, lease, option, or exchange real estate through the services and resources of the broker that you are signing the agreement with.
Those services my include, but not be limited to:
- Consultation regarding particular properties (*Consultation may include that Broker will have found properties they believe you might be intersted in - which they will bring to your attention viewing and consideration).
- Availability of financing. (*Even though you've been pre-qualed, what type of financing is availabe for specific types of properties?)
- Commiting your offer to purchase, lease, etc to writing (*writing the contract to purchase, etc.)
- Receiving delivery of offers or counteroffers that have been made by you and returned by seller. (*broker receives the offer, is the same as if you had received it)
If you sign a buyer's agreement, you are representing that you:
- Have not signed a written brokerage agreement currently in force with another Broker.
- Are not relying on the Broker to determine suitability of property for your purposes.
- Are not relying on the Broker to determine environmental or other condition of the property.
- Shall NOT be obligated to discover defects in the property
- Shall NOT be obligated to advise on matters outside of the scope of his/her real estate license.
- Does not make any representation or warranty with respect to the advisability of any transaction contemplated by you, the buyer.
- Does not make any representation or warranty with respect to the legal effect of any transaction contemplated by you, the buyer.
- Shall cooperate with legal counsel of buyer's choice (*on details of this transaction).
- Since Broker is not an expert in matters relating to law, tax, financing, surveying, structural condition, hazardous materials, engineering or other highly specialized areas, broker advises you, the buyer, to seek professional advice relating to these matters.
We've gone through the first two paragraphs of the Buyer Broker agreement that was designed by the Real Estate Forms Committee of the Oklahoma Real Estate Commisison . Much of the wording within this article is straight from that form.
Next post, we'll talk about how long the agreement is in force.
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