What is a brokerage agreement?
A brokerage agreement is a type of contract wherein one party agrees to act as a sales agent of another, who is called the principal.
What is a commission agreement called?
When you hire a broker, you'll need to negotiate the commission amount and the terms for paying it. You'll use a written agreement, called a broker commission agreement or a broker fee agreement, which you each sign. (More on that below.)
How binding is a buyer-broker agreement?
Are buyer-broker agreements enforceable? The agreement is a legal contract. If either party fails to abide by the terms, the other party has the right to seek legal enforcement of the contract.
What are the essential elements of a buyer agency agreement?
The key elements of the buyer-broker agreement are broker exclusivity, contract duration, compensation, and the description of the type of home the buyer is seeking. There is no “correct” answer for every buyer, so you should compare options.