buyer broker agreement

Definition

A contract binding a buyer to an agent for a specific period, ensuring the agent gets paid even if the buyer tries to ghost them after months of work. It's basically a pre-nup for the house-hunting relationship.

Example Usage

Before I show you any properties, I'll need you to sign a buyer broker agreement—I promise I'll earn my commission.

Origin

Emerged in the 1990s as buyer agency became more formalized and agents sought protection from buyer poaching

Fun Fact

Some states require buyer broker agreements by law, while others leave it optional, leading to wild variations in how buyer agents secure their compensation.

Source: Real estate representation contract terminology

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