I should start off by explaining what a buyer broker agreement is.Â It is an agreement between a real estate broker and a home buyer that explains the broker/client relationship and fiduciary duties that the broker owes to the client.Â With out one, in Indiana, the buyer is unrepresented in a real estate transaction, and they are merely a customer of the broker that they buy a home through.
This agreement, when properly executed, establishes that the buyerâ€™s agent that you are working with is your fiduciary.Â This means that I owe you accounting, confidentiality, disclosure, loyalty, obedience, and reasonable care and diligence.Â Letâ€™s take a look at each of those items.
Accounting - To account for all funds and property entrusted to me on the clients behalf.
Confidentiality - To safeguard your secrets.Â This protects you by keeping what you tell me in confidence from being used by a party to a transaction from using it against you.
Disclosure - To disclose all known relevant facts to you.
Loyalty - To act at all time in your best interests.Â This requires me to put your interests first, even above my own.
Obedience - To follow all lawful instruction given by you.Â This means that I am obligated to carry out your lawful requests on your behalf.
Reasonable Care and Diligence - To use real estate skills and knowledge when pursuing your business affairs.Â This means that I am bound to use my expertise to your advantage.
As you can see, it is in your best interest to sign a buyer broker agreement when choosing to work with me as your buyerâ€™s agent.Â Being a client is always better than being a customer when it comes to being a real estate consumer.
I hope you found this post to be helpful.Â As always, drop me a line if you have any real estate questions or needs.Â I love what I do, and I promise to always do the best job for you!
Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne