Entering into an Exclusive Buyer Representation Agreement is a significant step for any homebuyer. This agreement outlines not only my commitment to providing focused and professional representation but also details the rights, responsibilities, and protections you’ll have as a buyer.

In this post, I’ll cover each key element of the agreement so you can feel confident in what this document entails and how it benefits you.

1. What is the Exclusive Buyer Representation Agreement?

This agreement is a formal arrangement between you and the brokerage, through me as your designated agent. By signing, you’re granting me the exclusive right to assist you in finding and purchasing a property that matches your search criteria.

As your designated agent within a designated agency brokerage, I am exclusively committed to you. This distinction is essential in Alberta’s real estate market, as designated agency ensures that even though I work within a larger brokerage, I represent only your interests in the transaction, separate from other agents in our office.

2. Key Responsibilities of Your Designated Agent

Upon signing, I will provide exclusive services to help you navigate the home-buying process. This includes:

• Property Search and Evaluation: I actively search for properties that meet your criteria, provide market evaluations, and discuss each property’s pros and cons.

• Offer Preparation and Negotiation: When you’re ready to move forward on a property, I’ll guide you in creating a competitive offer, negotiate terms on your behalf, and manage all necessary paperwork.

• Market Updates and Professional Advice: I’ll keep you updated on market conditions and provide honest advice to empower your decisions.

  
  

3. Conflict of Interest and Transaction Facilitation

A conflict of interest may arise if I represent both a buyer and a seller for the same property. In such a case, I will inform both parties and present options, such as acting as a transaction facilitator. In a transaction facilitation role, I’d act neutrally to help bring the deal to completion without representing either party’s specific interests. If either party does not agree to facilitation, I would continue to represent the client with whom I signed the agreement first, unless we agree otherwise in writing.

4. Compensation and Commission Details

Typically, the seller pays the buyer’s agent commission, so most buyers don’t incur out-of-pocket expenses for this service. However, there are exceptions, like For Sale By Owner (FSBO) properties or instances where the seller offers a lower commission than the rate agreed upon in our brokerage agreement.

In such cases, I’ll negotiate my commission with the seller on your behalf. If needed, we can amend our agreement to reflect any modifications so that you’re not left covering the difference, or, if necessary, we may discuss the possibility of you covering the shortfall. For a more detailed explanation of these scenarios, see my Buyer’s Agent Commission and Compensation blog post.

5. Indemnification Clause

Under this agreement, you agree to indemnify and protect me and my brokerage from any legal claims arising from consents or acknowledgments made within this agreement, as well as any claims resulting from our good faith reliance on information you provide. This means that, if issues arise from these aspects, you would be responsible for covering related legal fees or other expenses.

6. Property Recordings and Privacy

It’s important to note that some properties you view may have active recording devices, including video and audio. Our brokerage, including myself, may not always be aware of these devices, so we can’t control whether you’re recorded by the property’s owners. By signing, you agree to release and hold us harmless from any privacy claims related to recordings made by the seller during your viewings.

7. Confidentiality Obligations

Confidentiality is at the core of my service to you, and this obligation doesn’t end when our agreement concludes. I am committed to protecting all personal and financial information related to your transaction, both during our agreement and afterward. Any confidential information shared during the transaction remains secure and is only disclosed with your written consent or as required by law.

8. Additional Terms and Show Home Visits

In some cases, there may be additional terms in the agreement that clarify specific expectations. For example, if you’re interested in new builds or pre-sale properties, I ask that you contact me before visiting show homes or sales centers. Many builders require an agent to be present at your first visit to secure representation and avoid exclusion from the sales process.

9. Early Termination Scenarios

The agreement will end automatically when you complete a purchase. However, several other circumstances can lead to early termination:

• If I or the brokerage materially breach the agreement, you can end it with written notice.

• If my real estate license is suspended, cancelled, or if our brokerage goes bankrupt, the agreement will terminate.

• You also have the option to end the agreement if our board membership status changes in a way that affects our ability to fulfill our obligations.

10. Document Attachments and Amendments

Any additional documents, such as the Consumer Relationship Guide, are attached to the agreement and form part of it. This guide provides valuable information on the different types of relationships you can have with a real estate agent, including designated agency, and what each relationship means for your rights and obligations. If any changes are needed to the agreement, amendments must be made in writing and signed by both parties to be valid.

For more insights into the different agency relationships and how they affect your rights as a buyer, feel free to check out my blog post, Understanding Your Relationship with a Real Estate Agent: A Guide for Buyers and Sellers.

11. Agreement Finalization and Communication Methods

To finalize the agreement, both you and I will sign, acknowledging that we’ve reviewed each part of the agreement and fully understand its terms. This includes your preferred communication methods for exchanging information—whether in person, by mail, or electronically. We recognize that each of these methods may involve certain risks, which we will discuss so you’re comfortable with the process. Additionally, we agree that electronic signatures are legally binding and will function the same as traditional ink signatures.

In Summary

The Exclusive Buyer Representation Agreement is an essential document that formalizes the commitment between you and your agent, ensuring you receive dedicated, confidential, and expert representation. This agreement provides peace of mind, clarity, and structure throughout your real estate journey.

If you have questions or would like to review the agreement together, don’t hesitate to reach out. I’m here to help ensure every aspect of your buying experience is transparent and supportive.

For more information on compensation and commission scenarios, please refer to my detailed post here, where I cover what happens in cases where commission differs from our original agreement.