There seems to be some wide confusion from home buyers about the Buyers Rep Agreement or the "BRA". So in this article I'll give you some helpful facts and information about this agreement and why as a home buyer, this agreement is in your best interest.
First what does this agreement obligate the buyer to do? By signing this agreement you have hired a real estate professional to represent you in finding a home, negotiating a great price and terms for you and following through all the steps from contract to close of the transaction. All the time with your best interest in mind.
What does it obligate the Realtor to do? The Realtor is bound by the Texas Real Estate Commission code of ethics to a fiduciary duty of protecting and advising you as a client through the home buying process from beginning to end. As a client the Realtor cannot convey any confidential information you reveal, to the seller or the listing agent.
What if I don't sign the agreement? You are not required to sign the Buyer Rep Agreement to purchase any home in Texas. Without this agreement you will be considered a customer and the Realtor remains a basic door unlocked and is representing the seller. So in this case the Realtor is not required to do anything except treat you fairly. No advice and no negotiations, just unlock the doors of the homes you want to see and functions as a messenger. Remember the Realtor in this situation works for the seller so be careful what you say to the agent because he is allowed to convey any confidential information you tell him or her to the listing agent.
What if I don't like my Realtor? You may terminate in writing. However there is a protection period, where as, if you purchase property the terminated Realtor has shown you within the protection period, you could owe the First Realtor their commission.
Do I need a Buyers Rep Agreement to purchase a new construction home? It would be in your best interest to do so. Generally sales people at new home sites are not licensed and they work for the builder. By having a Realtor representation you someone to do help you, negotiate for you and protect you. In my experience a buyer that is represented will get a much better deal from the home builder than without representation.
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