When you are looking to buy or sell a home with a registered real estate representative, your broker or salesperson will ask you to sign a buyer or listing representation agreement.
A representation agreement is the contract between you and the brokerage that permits them to market your current home or help you buy a new one. These agreements should be in writing to protect the interest of all parties.
Signing a representation agreement confirms in writing that you are a client of the brokerage and documents the terms, rights and obligations of the brokerage – client relationship. As a client, the brokerage has a special responsibility to follow your instructions, protect your confidential information and promote and protect your best interests.
So what’s in the agreement?
There are three pieces of information that all representation agreements must include:
- The date the agreement will take effect and expire.
- The commission or fees that will be payable and how they will be paid.
- The services that will be provided by the brokerage.