What is the purpose of a buyer's broker agreement?

The purpose of a buyer's broker agreement is to outline the responsibilities and compensation for the services provided by the broker to the buyer. This agreement serves as a formal understanding between the buyer and the broker, detailing the expectations pertaining to the transaction. It establishes the scope of services the broker will provide, such as helping to find properties, negotiating offers, and navigating the purchasing process. Additionally, it clarifies how the broker will be compensated for these services, whether it be through commission or another arrangement.

By having this clear agreement in place, both the buyer and the broker can align their goals and ensure that the buyer is receiving the necessary representation during their property search. This is crucial in establishing a professional relationship and ensuring that the broker is motivated to assist the buyer effectively, as it provides a framework for accountability and service expectations.

The other options may pertain to aspects of a real estate transaction but do not encapsulate the main function of a buyer's broker agreement, which is fundamentally about services and compensation rather than financing eligibility, property valuation, or a list of interested properties.