The Buyer Representation Contract serves as the foundational document establishing the professional relationship between a property buyer and their chosen real estate representative. This contract type is essential in the U.S. real estate market as it clearly defines the scope of services, responsibilities, and compensation structure while ensuring compliance with state and federal regulations. It protects both parties' interests by setting clear expectations and establishing the framework for the agent-buyer relationship throughout the property search and acquisition process.
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1. Parties: Identification of the buyer and real estate agent/broker
2. Background: Context of the representation agreement and relationship
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of services the agent will provide
5. Term: Duration of the agreement and renewal terms
6. Compensation: Commission structure and payment terms
7. Agency Relationship: Definition of the fiduciary relationship and duties
8. Representations and Warranties: Statements of fact by both parties
1. Designated Agency: Used when multiple agents from same brokerage may be involved - applicable in larger brokerages with multiple agents
2. Property Preferences: Specific criteria for property search - used when buyer has specific requirements
3. Dual Agency: Provisions for when agent represents both buyer and seller - applicable in states where dual agency is permitted
4. International Considerations: Special provisions for international buyers - applicable when buyer is a foreign national
1. Agency Disclosure Form: State-mandated disclosure of agency relationships
2. Buyer's Requirements: Detailed list of buyer's property preferences and requirements
3. Commission Schedule: Detailed breakdown of commission structures
4. Service Area Map: Geographic boundaries of agent's service area
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