Are you in the market for a new home? If so, it’s important to understand the intricacies of real estate contracts, including the buyer agency agreement.
The buyer agency agreement is a contract between a buyer and a real estate agent that outlines the terms of their relationship. The agreement states that the agent will represent the buyer in the transaction and work exclusively for their best interest.
One type of buyer agency agreement is the “WR-1” or “Buyer Agency Agreement” from the Wisconsin REALTORS® Association (WRA). This agreement is commonly used in Wisconsin and has a few specific clauses that are important to understand.
Firstly, the agreement outlines the agent’s compensation. The buyer agrees to pay the agent a commission for their services, typically a percentage of the purchase price of the home. However, in some cases, the seller may agree to pay the commission instead.
The agreement also includes a termination clause, which allows either party to terminate the agreement under certain circumstances. For example, if the buyer finds a home on their own or decides to work with a different agent, they can terminate the agreement with their current agent.
Another important clause is the “expiration date” of the agreement. This is the date when the agreement will end if the transaction has not been completed by then. It’s important to note that the expiration date can be extended if both parties agree to do so.
Finally, the buyer agency agreement also outlines the agent’s duties to the buyer. This includes finding suitable properties, providing market analysis and guidance, and negotiating offers and counteroffers on the buyer’s behalf.
Overall, the WRA Buyer Agency Agreement is a valuable tool for both buyers and agents. It establishes clear expectations and ensures that the agent is working solely for the buyer’s benefit. As with any legal agreement, it’s important to read through the contract carefully and ask questions if there are any terms or clauses that are unclear.