What is the primary purpose of a buyer agency agreement?

What is the primary purpose of a buyer agency agreement?

• A. To establish buyer's market value
• B. To identify the terms of the buyer agent/buyer agency relationship
• C. To limit the buyer’s options
• D. To disclose seller's information

Answer: (B)

The primary purpose of a buyer agency agreement is to identify the terms of the buyer agent/buyer agency relationship. This agreement is a legally binding document that outlines the duties and responsibilities of both the buyer and the real estate agent representing them. It establishes the scope of services provided by the agent, the compensation structure, and the duration of the agreement. This clarity helps ensure that both the buyer and the agent are aligned in their objectives, facilitating a more effective and cohesive working relationship. By defining these terms, the agreement protects the interests of both parties and outlines the expectations, which can lead to a more satisfactory experience in the home-buying process. In contrast, options focusing on market value, limiting buyer choices, or disclosing seller information do not directly capture the essence of what the buyer agency agreement is designed to accomplish. While those factors may be relevant in the broader context of real estate transactions, they are not the primary purpose of a buyer agency agreement itself.

The primary purpose of a buyer agency agreement is to identify the terms of the buyer agent/buyer agency relationship. This agreement is a legally binding document that outlines the duties and responsibilities of both the buyer and the real estate agent representing them. It establishes the scope of services provided by the agent, the compensation structure, and the duration of the agreement.

This clarity helps ensure that both the buyer and the agent are aligned in their objectives, facilitating a more effective and cohesive working relationship. By defining these terms, the agreement protects the interests of both parties and outlines the expectations, which can lead to a more satisfactory experience in the home-buying process.

In contrast, options focusing on market value, limiting buyer choices, or disclosing seller information do not directly capture the essence of what the buyer agency agreement is designed to accomplish. While those factors may be relevant in the broader context of real estate transactions, they are not the primary purpose of a buyer agency agreement itself.