What's in a Buyer Agency Agreement?

I ALWAYS get them to sign the Agency Agreement before signing the Offer Contract. So far, no one has complained.

Thank you Mimi!  I was composing my first Buyer's Agreement email this morning when I saw your blog post.  It helped me clarify what I was trying to convey to my buyer.  I wish you the same luck today on your end!

I go back and forth on this but my gut always tells me to get a buyers agreement under certain circumstances and I do. Has not failed me so far. Some good buyers are so skittish, but your gut tells you they will follow through. I play the odds.

We learned the lesson the hard way years ago, and lost a sale because of it. Now, we get a BAA signed on EVERY property, whether its for a period of time or for just a specific property. Better safe than sorry!

I like Buyer's Agreements...unforunately they aren't really used in our town.  Texas has a BRA, but what always scares the buyers is that part of the language states that if the seller refuses to pay the commission, the buyer will be responsible.  This usually stops them right away.  They don't want even the slightest possibility of having to come up with that money.  

Without the buyers agreement, you have not ( by contract ) hired me.  I would like to work for you, but I would like it to be legal, for you and for myself.

Great rundown. You've pretty much covered it. I think I'll copy and paste it if you promise not to sue me for copyright infringement.

Hi Mimi, we agree although the buyer agency agreement is a bit different in Florida.

Nice post.  I just became an ABR and learned a lot about buyer represntation although I've been a Realtor for 13 years.  It's not an easy task.  But often a fulfilling one. 

How many times you work with buyer and suddenly they find something else with a another agent on spot. I use buyer representation agreements and has served me very well so far. The BAA should make sure that you get paid.

Mimi, I totally agree that it isn't right to work for months for free.  I try and get a BRA whenever I am working with a customer, but sometimes they just flat out refuse.  Another issue that has arisen is we have been told that since our Texas form is an agreement and not a contract, we can't sue if the buyer doesn't perform.  

There was an agent in Arlington that sued her buyers because they purchased another home through another agent even though she had a BRA with them.  The judge dismissed her case because he said she did not have a binding contract, only an agreement.  

I would be very happy if we went to a system where agents are required to have a buyers contract like listing contracts.  I know there are other states that require this...it sure would make people really think about who they use and how serious they are about looking for a property.

Mimi ~ I really like your explanation of the buyers agency agreement.

I am still a Newbie but there is one thing I have learned since April 9th, 2013, is if I want information, GO TO AR! THEY HAVE LOTS OF MEMBERS WITH EXCELLENT INFORMATION. Today I am reviewing using the Buyers Agency Agreement - Exclusive vs Nonexclusive. Yours was the first blog I clicked in to. Wow! Again, tremenduous info and style. Thank you, MiMI. Do you have an example of the form you use? Thank you from Orlando and TeamConnect Realty, Mimi.