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What is an Exclusive Buyer's Representation Document?
An Exclusive Buyer's Representation Agreement (also called the Exclusive Right to Purchase Contract) is a legally binding contract between you (the buyer) and, in this case, George Sykes, a licensed real estate broker. It appoints the broker as your exclusive representative to help you find and purchase a home in the Illinois side of the St. Louis metro area or the area defined in the contract. For example, Maryville, IL or 618 area.
Under this agreement:
- The broker provides full professional services, including searching for properties, advising on pricing and market conditions, writing offers, negotiating, and guiding you through inspections and closing.
- You agree to work exclusively with that broker for a set period of time (Discuss that timeline with George).
- If you purchase a home during that period (even if you found it on your own), the broker is entitled to compensation as outlined in the agreement.
This contract ensures the agent works solely in your best interest (fiduciary duty) and protects their time and effort in representing you.
How does a Buyer's Agreement work?
- You and the agent discuss your needs, budget, and timeline.
- You sign the agreement, which spells out:
- Services the agent will provide
- Length of the agreement
- How the agent will be compensated (usually a percentage of the purchase price)
- The agent searches the MLS and other sources, shows you homes, writes offers, negotiates, and handles the transaction.
- Compensation is documented in the agreement.
- You can request the seller to pay all or part of the fee through a concession in your purchase offer (see "Who pays commissions" below).
The agreement does not require you to buy a home. You can walk away if you do not find the right property.
Is it required?
Yes, in most cases it is required to have a signed Buyer's Agreement if you want an agent to:
- Show you private listings
- Write an offer on your behalf
- Negotiate on your behalf
- Provide full representation during the transaction
Without it, agents cannot provide these services. However, you can still attend open houses without signing an agreement, as open houses are open to the public. (See Below)
How long does it last?
The term is negotiated between you and the agent. Common lengths include:
- 1 week or so. (make sure you and George can work together. He will not hold you hostage to a long term agreement.)
- 3 to 6 months (most popular for active buyers)
- 12 months (for longer searches or new construction)
- Shorter terms (1 or 2 days) for specific situations
The agreement ends when:
- The term expires
- Both parties mutually agree to terminate
- You purchase a home (and the agent is compensated)
Why are Open Houses becoming popular again?
Open houses are open to the public. Anyone can attend without signing a Buyer's Agreement. This is why they are popular again:
- Buyers can view homes casually without committing to an agent
- No obligation to sign anything at the door
- Great way to explore neighborhoods and see homes in person
- If you are represented by an agent, let the agent holding the open house know.
However, if you want the agent at the open house to write an offer, negotiate, or represent you fully, you will typically need to sign a Buyer's Agreement at that point.
Who pays commissions?
Under current rules (post-2024 NAR settlement), commissions are negotiated and not automatic.
- The seller may offer to pay the buyer's broker compensation (still common)
- The buyer can ask the seller to cover the fee in the offer (often successful)
- The buyer can pay their own broker directly (less common)
In your Buyer's Agreement, the compensation is clearly documented (e.g., 2.5 to 3 percent of purchase price). Then, in the purchase offer, the buyer can request the seller to pay part or all of it.
Can I, as the buyer, ask to have my side of the commissions paid?
Yes. Most Contracts to Purchase Real Estate include language allowing you to request seller concessions for your broker's compensation.
Example language from a Contra to Purchase:
The Purchase Price shall be subject to the following Seller concessions to be credited to Buyer at Closing:
(a) $__________ or __________% of Purchase Price shall be credited by Seller at Closing towards Buyer's closing costs, prepaids, points, and other fees allowed by lender.
(b) $__________ or __________% of Purchase Price shall be credited by Seller at Closing towards Buyer's broker's compensation.
This allows you to formally request the seller to pay your broker's fee, often reducing or eliminating out-of-pocket cost for you.
Bottom line
The Exclusive Buyer's Representation Agreement is a standard document that protects both buyer and agent. It ensures dedicated representation and clear compensation terms. Open houses are a great way to explore without commitment, but for full service (offers, negotiation, closing), the agreement is required.
Have questions about the process or want help reviewing an agreement? Contact George Sykes at Worth Clark Realty for a no-pressure conversation.
Hope that Helps. Have questions, Call me. 618-531-4000, George.
"In a digital age of shares and likes,
you need a Realtor LIKE George Sykes"
George Sykes
Managing Broker, Worth Clark Realty
618-531-4000
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