The Buyer-Realtor Relationship
 

With gas and oil prices being so high, the cost of food on the rise, and the number of houses on the market increasing steadily as a result of the sub-prime mortgage crash, many realtors have had to change the way they do business. Market conditions have forced realtors to find ways to service their clients in a more cost-efficient and cost-effective manner. In some of the states, realtors who work with buyers are required by law to enter into buyer brokerage agreements with them, where as in others buyer brokerage agreements are not mandated by law. In a nutshell a buyer brokerage agreement sets forth the relationship between the buyer and the realtor, including their duties and obligations to one another under the agreement.
There are two types of buyer brokerage agreement in India Property and all over, exclusive and non-exclusive. An exclusive buyer brokerage agreement requires the buyer to work exclusively with one agent who will be paid a commission if the buyer closes on a house during the term of the agreement, and, under certain circumstances, for a short time after the agreement expires. A non-exclusive buyer brokerage agreement allows the buyer to work with more than one agent to locate a house and only requires payment of a commission to the agent who finds the house which the buyer ultimately purchases.
In the earlier days it was not uncommon for agents to work with buyers without having them sign a buyer brokerage agreement. Agents were willing to take a chance on buyers with the hope the buyer would be loyal to them.With the recent changes in the economy, many realtors have decided to work only with buyers who agree to sign an exclusive buyer brokerage agreement. The exclusive buyer brokerage agreement is a promise of loyalty between the buyer and the realtor. The buyer is promising to work exclusively with that realtor to find a home with the understanding that the realtor will be entitled to a commission when the buyer closes.
The realtors are promising to represent the interests of the buyer to the best of his ability and to avidly negotiate on the buyer's behalf.The exclusive buyer brokerage agreement is a tool that the realtors use to protect their investment. When a realtor takes on a buyer as a client, he is investing time and resources in that buyer with a eye toward earning a commission if he is successful in finding a home for that buyer. If a buyer refuses to sign a buyer brokerage agreement, it signals to an agent that the buyer may not be serious.

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