There are three important benefits the Buyer Representation Agreement (B.R.A) provides to both you and your clients.
First, it gives you the ability to represent your client. Without this agreement, you’re essentially a sub-agent of the listing brokerage. In other words, you’re legally bound to represent the best interests of the seller or landlord against what you believe to be your own client. With the agreement in place, you can advocate for them, hold their confidentiality in place, and put your best effort toward getting them the best deal. You can’t do this legally without it.
Second, without written authorization from the buyer or tenant, you’re not legally permitted to show the listings of your own brokerage. There is no intermediary situation without written authorization, and that’s provided on the buyer/tenant side on the representation agreement.
The last benefit is something you might not have thought about: The B.R.A invalidates all properties shown to a client by a previous agent and eliminates any ongoing protection period.
For example, if your client worked with an agent prior to their relationship with you and they were in a representation arrangement, that agent could have provided them with a list of properties that would be protected during the protection period. If that client rents or purchases one of these properties, they could owe that prior agent a commission.
Typically the listing brokerage pays the commission provided by the seller or landlord, but because of the MLS offering, that’ll probably go to you as their new agent. Your client would then be stuck having to go out of their own pocket to pay their previous agent. With the B.R.A in place, though, you don’t have to worry about this.
So don’t be shy about presenting the B.R.A to your clients, and make sure you’re able to explain these important benefits. Afterward, you’ll both be in a better place.
If you’d like to talk more about this topic or you have any other real estate questions I can answer, don’t hesitate to reach out to me. I’d love to help you.