What does it mean to be “Represented” as a Buyer?

You are owed Fiduciary Duties

Loyalty - act in best interest of client (Giving you guidance based on what is best for you not

just trying to make a sale)
Confidentiality - safeguard confidential information ( Not telling other parties personal or

financial information that would put you at a disadvantage)
Disclosure - obligation to disclose material information to buyer ( Gathering and giving you

information about the property or situation)
Obedience - promptly obey lawful instructions (Following your instructions)
Reasonable Care and Diligence - use skill and expertise in pursuing clients affairs (Using my

knowledge and training to act and provide you with professional level service)

Accounting - to account for all money or property entrusted to an agent. (All moneys or property

put in our company’s care during the transaction will be recorded, monitored, and accounted for at all times according to your instructions)

Why does all of this matter?

●  As a Real Estate Agent, I must represent at least one party (Buyer or Seller) to a Real Estate Transaction.

●  To create representation (also called Agency), the buyer and the agent must enter into a written agreement of agency.

●  Without a written agency agreement, if I am showing you a house technically I am a Sub-Agent of the Listing Firm, therefore representing the seller.

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What is a Non-Exclusive Buyer's Representation Agreement?

●  It creates the agency agreement between the Buyer and Agent.

●  Gives buyer rights to Fiduciary Duties

●  Does not obligate buyer to pay a commission or cancellation fee if buyer decides not to buy a

house ( Exclusive Buyer’s Representation Agreement)

●  Establishes that Buyer’s Agent will receive commission from the Listing Firm.