Whether it’s a condo in the city, or a brick home in the suburbs, the search for your dream home is an exciting time. For many prospective buyers, the period between the decision to buy and the day you get the keys to your new home takes a back seat to your dreams of the exciting times ahead.
As a buyer, you need to be informed and educated throughout every step of the home buying process, and it can be challenging to set aside your search for the perfect window treatments when your agent is asking you to sign a document you don’t understand, like a Buyer Representation Agreement (BRA).
To help you tackle this, we are going to give you the short and sweet explanation of a BRA so you can get back to the decisions you’re excited about making!
What is a Buyer Representation Agreement?
This document defines your relationship between you and the brokerage, and how the agent will represent your best interests.
How is a BRA Presented?
While the agreement can be written, oral, or implied, it will ultimately need to be reduced to writing with your signature in order to protect everyone involved.
When Should You Sign?
Like anything else you place your signature on, it’s important to fully discuss and understand the services provided, the cost related to the services, and that the written agreement is clear. Typically a BRA is signed before you begin working with the real estate agent.
What Will Happen if You Don’t Sign?
According to the Code of Ethics, the broker and salesperson must protect and promote your best interest as their client on top of being fair, and honest. While you are able to choose to be a customer rather than a client, be aware that there could be some differences in how you are represented.
What is a Holdover Clause?
This means that once your BRA expires, if you purchase a home after a certain number of days (usually 90) that came to your attention during the BRA, you must still go through the agent to purchase the home.