Understanding the difference between an exclusive buyer’s agency and a buyer’s agent agreement is essential when buying a home in Massachusetts.
An exclusive buyer’s agency is a real estate company representing only home buyers. They do not work with sellers.
On the other hand, an exclusive buyer’s agency agreement is a contract between a buyer and a buyer’s agent. The agreement lays out the role and responsibilities of the agent, among several other essential things.
Maximum Real Estate Exposure is an excellent resource on buyer agency agreements. Read their comprehensive article to understand it completely.
Exclusive Buyer’s Agencies vs. Buyer Agency Agreements in Massachusetts.
Understanding the Basics of Buyer’s Agreements
In the Massachusetts real estate market, it is crucial to understand the basics of buyer’s agreements when engaging in property transactions. These agreements establish the framework for the relationship between buyers and their designated agents.
Let’s delve into the different types of buyer’s agreements and explore the key differences between an exclusive buyer’s agency agreement and a buyer’s agent agreement.
Types of Buyer’s Agreements
Two primary types are commonly encountered in buyer’s agreements: exclusive buyer’s agency agreements and non-exclusive buyer’s agent agreements.
Exclusive Buyer’s Agency Agreement
An exclusive buyer’s agency agreement designates the agent as the sole representative of the buyer. Regardless of who finds the desired property, the agent is entitled to a commission.
Even if the buyer directly purchases from the owner without the agent’s involvement, the commission is still owed to the exclusive agent.
Non-Exclusive Buyer’s Agent Agreement
A buyer’s agent agreement also designates the agent as the buyer’s representative, but the commission is only payable if the agent finds the property that the buyer ultimately purchases.
If the buyer independently…