The short answer is no. You don`t need to sign a Buyer`s Representation Contract (ARB) with a broker, but you should consider the benefits they offer you as a home buyer. An ARO defines the relationship between the buyer (you) and the real estate agent who works on your behalf. Ken – the intention of the document is to offer protection to both the buyer and the broker. The commission section you mention does not contain any provision allowing a broker to collect a commission twice. The commission is always sought first by the seller and is how most commissions are paid. The listing agent charges the seller a negotiated commission and then offers compensation to other brokers through MLS to bring the buyer. It is this commission that is usually paid to the buyer`s broker. The reason the paragraph exists is that sometimes no commission is offered – the best example is with one for sale by the owner.
Many for sale by owners do not offer commission (and are not covered by the mlS rules that require this offer of compensation). Thus, the agreement has a provision that allows the agent to claim payment of such a commission from the buyer, since the seller or his (missing) agent will not pay it. 8. INTERMEDIARY Determines (via control boxes) whether the client wants to see the broker`s offers. If the client wants to see the broker`s lists, the agreement addresses the details of the intermediary who deserves their own contribution. Remember, although your customer is the buyer, you have an obligation to treat the seller fairly and honestly. Avoid acts that could be interpreted as pressure on the seller to sell the property to your client. A home builder is a seller.
So you need another representation! Believe me, if I tell you that the salesman sitting in the owner`s model house may be a super nice guy or a woman, but he/she is paid to pay attention to the best interest of the client, not yours. Our company`s website contains the „Brokerage Services Information“ form (TAR 2501) which can be read and downloaded by anyone who visits the site. If we meet a potential buyer in one of our listed homes and the buyer says they found the home on our website and read the form on the site, do we still need to give them a copy of the form if we first meet them in the listed home? I should also mention the most common error on the internet about buyer representation – the one that works according to the slogan: „Well, if I don`t have an agent as a buyer, the seller doesn`t have to pay a commission from a buyer`s agent, so I can get the house cheaper.“ It always sounds useful, but the truth is that the commission is set at the time of the property listing and is between the seller and his agent.