In today’s digital age, where it seems easier than ever to simply add something to an online cart, check out, and receive it in the mail a few days later, it’s no surprise that some home buyers might be under the misconception that buying a home is something that can be done without the help of an experienced and licensed professional.

Can’t you just go on Zillow and message the listing agent directly? You could do that. But it would absolutely not be in your best interest.

It’s a much better idea to work with a buyer’s agent. And when you hire a buyer’s agent, the National Association of Realtors® (NAR) stipulates that you sign something called a Buyer-Broker Agreement.

These agreements have been around for a while, but only recently are they mandatory.

In this post, we’re covering why you should sign a buyer-broker agreement and everything you need to know about them. Let’s dive in!

First of All, What is a Buyer’s Agent?

A buyer’s agent is the real estate agent or Realtor® who represents the homebuyer in a real estate transaction. What does a buyer’s agent do? A lot of things! Here are just a few of the tasks your buyer’s agent takes on:

• Show you properties, attend open houses on your behalf, FaceTime you at showings if you’re not able to be present
• Shares knowledge of off-market listings
• Meet with inspectors, communicate with your lender, attorney, etc.
• Submit offers and negotiate on your behalf
• Handle all contract management, escrow, deadlines, etc. so you don’t have to
• Advocate for your best interests throughout the entire transaction
• Recommend trusted professionals and service providers to help facilitate your move
• And more!

Do you have questions about buying a home in Park City? Here are a few more posts you might find helpful:

• When is the Best Time to Buy a Home in Park City?
• Do You Need a Realtor to Buy a New Construction Home?
• The Art of Negotiation in Luxury Vacation Real Estate

What is a Buyer-Broker Agreement?

Simply put, a buyer-broker agreement (or a buyer representation agreement as it is sometimes called) is the legal paperwork that defines our working contract and is essentially how you hire us. A buyer-broker agreement gives real estate agents fiduciary obligations to act in your best interest at all times.

These fiduciary duties are legally binding and cover a variety of tenets including:

• Loyalty – We must be loyal to your best interests and put your needs above our own.
• Confidentiality – We must keep all client information confidential at all times.
• Accounting – We are accountable for any funds entrusted to us.
• Disclosure – We must always disclose information that could in any way impact your decisions.
• Care – We must employ competence and provide conscientious service.
• Obedience – We are bound to obey the law and any lawful requests or instructions from you.

Essentially, a buyer-broker agreement protects you and your best interests in every possible way. It’s a legally binding document that outlines the terms of your relationship with us.

Looking for something specific in Park City or Deer Valley? Read these posts next to learn about our region’s unique property offerings, or check out our featured listings to see what’s currently available:

• How to Buy a Ski-In, Ski-Out Home
• Where to Find Horse Properties Around Park City?
• What are the Best Park City Golf Communities?
• Best Gated Communities in Park City

Do You Have to Sign a Buyer-Broker Agreement?

In short, yes. A buyer-broker agreement is required for us to begin showing you properties. It’s also required for submitting offers. This directive comes from the National Association of Realtors® as a result of the NAR settlement of 2024.

If you’d like to learn more about the NAR settlement agreement and how it impacts home buyers and sellers in the US, you can read about it here.

How Long Does a Buyer-Broker Agreement Last?

A buyer-broker agreement can last as long as both parties agree. The terms are negotiable. It can be property specific, county specific, or even neighborhood specific.

How to Cancel a Buyer-Broker Agreement

A buyer-broker agreement can be cancelled if the terms run out. However, if you’re not happy with your agent, it is possible to terminate the agreement.

It’s important to remember that although the buyer-broker contract is a binding legal document, its purpose is to protect you and your best interests.

We’ve written extensively about buying real estate in Park City. Whether you’re relocating permanently or purchasing a vacation property, here are a few more posts you might like:

• Best Park City Neighborhoods for Permanent Relocators
• Is Utah a Good Place to Retire?
• What’s the Best Way to Finance a Vacation Home in Park City?

Who Pays the Buyer’s Agent’s Fees?

Realtors® are paid through commissions from the sale of the property. Usually represented as a percentage of the purchase price that goes to the buyer’s agent and the seller’s agent.

In the past, it was the seller who paid the buyer’s agent’s fees. However, part of the NAR Settlement was to improve the clarity around real estate commissions.

The fees are either paid by the buyer, by the seller, or by a combination of both. But the important thing to note is the transparency ahead of time, so no one involved in the transaction is hit with any unpleasant surprises. Again, just another way the buyer-broker agreement protects your best interests!

Thinking About Buying a Home in Park City?

Nothing can replace the peace of mind, protection, and high level of service you get when you work with a licensed and experienced real estate agent. If you’re thinking about buying a home in Park City, make sure you’re working with someone you can trust.

Here at CFH, we’ve helped countless buyers and sellers in Park City and Deer Valley expertly navigate the market. To learn more about our services, fill out the form below, call us at 435-647-8083, or email us at info@CFHparkcity.com.