Help! Buyer Representation Agreement?

2 Replies

Hey BP world, So I am looking to purchase my first property. So I contacted a real estate agent that sounds very knowledgeable and has a lot of experience. However, he told me in order to assure him that I'm not wasting his time he needs me to sign a buyer representation agreement. After reading the document it sounds like I am obligated to use him no matter what for the property I purchase or I will have to pay a fee. I don't know how I feel about this. Please let me know your thoughts and if you think I should find another agent. Thank you guys

My wife/realtor says it's basically a non issue.

All the contract really says is that if this agent shows you a specific house and you end up buying that specific house, he gets the commission. You can fire him or work with other agents simultaneously....but if he brings you the house you end up buying, he gets paid, regardless of who you are currently working with.

My wife doesn't use these, fyi. 

Way more important is: does this agent own investment property themselves? Would you follow the advice of stock broker who didn't own stock?

@Albert Melo

If you want to use the agent, tell him you will sign a rep. agreement that is property specific.  In other words, you're ONLY obligated to his broker for the properties the agent physically shows you, not any properties you find on your own and not any properties shown to you by other agents/brokers. If he won't agree, time to find another broker/agent.  

In Texas, you can can't terminate the buyer rep. agreement unilaterally unless the contract specifically authorizes you to do so, which is why you should read the buyer rep. agreement you're signing VERY carefully as you will likely find you're more obligated to the broker than you think.  

Guy Gimenez, Buying Texas Today | [email protected] | (512) 270‑7279 | http://www.BuyingTexasToday.com

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you