Validity of Unsigned Buyer’s Representation Agreements
Question:
I heard that a Buyer’s Representation Agreement could be legal even if it’s not signed. I have client and they have the document in their possession but they haven’t returned it yet.
Answer:
The unsigned BRA, is it legal? While an APS must be in writing the BRA need not be. The issue, of course, is proving its existence if it is not signed. The mere fact that it was given, delivered and not signed is not sufficient in and of itself to substantiate proof.
Let’s say it was emailed, followed with confirmation that the prospect agreed. That would be an agreement in writing. A verbal agreement would work and be enforceable too but you would need proof. An implied agreement is really stretching the point. The document is going to be construed against you as a real estate practitioner. So, while it’s possible for an implied agreement to be upheld, it has to be very rare. Like everyone else says, “get it signed”.
It is also very difficult to prove an implied listing agreement. Best hope would be to receive compensation on a “quantum meruit” basis, that is, a return of the money you spent.
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