What is a buyer's agency agreement?

A buyer's agency agreement, also known as a buyer's representation agreement, is an agreement signed by a prospective buyer that authorizes a licensed brokerage firm, and usually a specific real estate agent at the brokerage firm, to represent the buyer in buying a home. Different markets have different standard forms of agreement, as do many brokerage firms. Prospective buyers sign buyer's agency agreements to confirm their commitment to working with a brokerage firm or an agent, and to assure the firm or agent that they will be compensated if a sale occurs. The term of the agreement is negotiable.

Before signing a buyer's agency agreement, the buyer should be sure that they want to work with the agent and the brokerage firm. Some buyer's agency agreements require the buyer to pay compensation to the buyer's agent even if that agent does not find the home purchased.

Buyer's agency agreements also often address the conditions of the brokerage firm and agent's dual agency policy. Dual agency occurs when a brokerage firm or an agent represents both the buyer and the seller in the same transaction. Redfin Agents won't act as both the buyer's agent and listing agent in the same transaction, but you can always work with a Redfin Agent to buy a Redfin listing.

Redfin Buyer's Agency Agreement

Redfin doesn't require clients to sign a buyer's agency agreement until they submit an offer on a home (except if required by local law). The agreement is necessary only to ensure that there are no misunderstandings regarding the commission and the client's refund. If the offer isn't accepted, there's no obligation to continue working with Redfin. And if you're ever unhappy with our service, you can cancel your agreement at any time. Learn more about buying or selling with a Redfin Agent.