Elements of an Exclusive Buyer Broker Contract

From the time I first began counseling and representing real estate buyers in the late 1970s, I have always used an exclusive buyer broker contract with my clients.

Granted, I was one of very few brokers in California who did. But today, I'd venture to guess that one out of every three real estate agents sign buyer broker contracts with home buyers. From a broker's point of view, it keeps one employed. I work harder for clients with whom I have signed an employment agreement because I know they rely on me to perform, and I'm legally bound to do so.

It's one thing to ask an agent to call you if she happens to run across your perfect home on tour. It's another to expect performance and due diligence because you have agreed to work solely with that agent. Very few buyers understand how exclusive buyer broker contracts work. In California, for example, we use the California Association of Realtor's buyer broker contracts, and only one type of contract is exclusive. It consists of six pages, most of which read like legal jargon.

But there are four essential elements that can be negotiated with the agent you hire. These important components cover compensation, duration, acquisition and exclusivity . . . read more about Exclusive Buyer Broker Contracts.

More Articles by Elizabeth Weintraub:

• Types of Buyer Broker Contracts
  
• Hiring a Buyer Broker
  
• Dual vs. Single Agency

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