Buyer Brokerage is an Agency Agreement that a Real Estate Broker enters into with a potential Buyer.  The purpose of the agreement is to establish a professional relationship in which the Real Estate Broker (and its salespeople) will work towards the best interest of the BUYER with regards to helping them purchase property. For More information about “Agency”, see below.

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A Buyer Broker owes to you Confidentiality, Loyalty, Obedience, and Full Disclosure. A Buyer Broker will also assist you in identifying as many properties on the market as possible, regardless of the compensation amount advertised. This includes FSBO's, non-listed sellers, foreclosures and preforeclosures, and many other types of properties... NOT just those listed on the MLS that offer a commission rate that is acceptable to the salesperson.

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WHO PAYS for the services of a Buyer Broker?

TYPICALLY , when a property is listed for sale, the seller has agreed to pay to the Listing Broker a commission as part of their closing costs. The Listing Broker, with the consent of the seller, then pays a portion of that commission to a Buyer Broker or Transaction Broker who brings a buyer to the transaction. If the Listing Broker sells the property to a buyer who is NOT represented by another Buyer Broker or Transaction Broker, the Listing Broker typically keep the entire commission. That is why Listing Brokers work so hard to find un-represented buyers for their listed properties!!!

MANY For Sale By Owner (FSBO) sellers even agree to compensate a Buyer Broker or Transaction Broker who brings a buyer to purchase their property.

Ultimately, if the compensation to the Buyer Broker is not paid in full by the Listing Broker or seller, the buyer is responsible for the difference AT CLOSING. SOMETIMES, a Buyer Broker will require a retainer fee to cover upfront expenses in case the buyer does not purchase a property. I DO NOT require a retainer for Buyer Broker services.

The compensation amount that the Real Estate Broker requires in order to serve as a Buyer Broker varies by company, office, and sometimes even by salesperson . The compensation amount is clearly defined in the Buyer Brokerage Agreement that must be signed to establish an Agent-Client relationship.

REMEMBER , compensation for the Buyer Broker is CLEARLY defined in the property listing or Purchase Agreement. You will know EXACTLY who is paying for the Buyer Broker's services BEFORE you even make an offer to purchase.

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What is an "Agency Agreement"?

When sellers list their property for sale, they typically enter into a Single Agency Agreement with a Real Estate Broker to represent them to the best of their ability in the Real Estate transaction. That agreement states that the Real Estate broker (and its salespeople) pledge themselves to protect and promote the interests of their client , and will market the property and perform duties that are in the best interest of the seller in exchange for compensation (commission). Therefore, that Real Estate Broker is agreeing that, with regards to the transaction on the seller’s property, they will NOT work towards the best interest of the buyer. That would be called “Dual Agency”, and Dual Agency is illegal in most states (including the state of Florida ).

When a Real Estate Broker works with a buyer for a property they have listed, the Real Estate professional is operating either as a “Transaction Broker” to the buyer or with "No Brokerage Relationship" with the buyer. A “Transaction Broker” provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent.

Per Florida Agency Law:

	Single Agent	Transaction Broker	No Brokerage
Deal honestly and fairly	X	X	X
Disclose all known facts that materially affect the value of residential real property and are not readily observable	X	X	X
Account for all funds entrusted to the licensee	X	X	X
Present all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing	X	X
Use skill, care, and diligence in the transaction	X	X
FULL Confidentiality	X
Loyalty	X
Obedience	X
FULL Disclosure	X

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