Two Common Types of Brokerage Agreements
What is a brokerage agreement? A brokerage agreement is a contract between a real estate agent and a client. The agreement states the realm of services the agent is to provide to her/his client.
One common type of brokerage agreement is the exclusive buyer-broker engagement agreement. This agreement is between a real estate agent and a client/home buyer. The agreement states that the real estate agent is exclusively acknowledged by the buyer as the only agent to represent the buyer in purchasing a property. The agreement outlines the duties the real estate agent is providing on behalf of the buyer in the home purchasing transaction. The buyer-broker agreement is beneficial to protecting the buyer-client's best interest as well as protect the agent in her/his scope of duties.
Another common type of brokerage agreement is the exclusive seller brokerage engagement agreement. This agreement is between the home seller and the real estate agent, which the seller has exclusively chosen to represent them, in the selling of their property. This agreement is sometimes referred to as a listing agreement. This agreement also clearly outlines the commissions to be paid to the real estate agents and informs the clients whether the agent may be acting in any other capacity besides seller's agent during the transaction.
These are the most commonly used brokerage agreements in residential property sales transactions.
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