What is a buyer's agency agreement?

A buyer's agency agreement is a contract that establishes a formal relationship between a buyer and a real estate agent. This legal document clearly outlines the duties and responsibilities of both parties, ensuring that the agent represents the buyer’s interests throughout the property purchasing process.

The agreement typically specifies the scope of the agent's services, including assisting with property searches, negotiating offers, and providing market insights. Additionally, it may detail the duration of the agreement, the commission structure, and any other terms pertinent to the relationship.

In contrast, the other options do not accurately describe the nature of a buyer's agency agreement. A document outlining financial responsibilities may be part of a different agreement but does not encapsulate the agent's role. An agreement to share commission with the seller does not reflect the purpose of the buyer's agency, which focuses on representing the buyer’s interests. Lastly, a verbal agreement between friends lacks the legal consideration and structure necessary to establish an agency relationship, which must be formalized in writing to be enforceable.