buyer broker agreement

Definition

A contract binding a buyer to an agent for a specific period, ensuring the agent gets paid even if the buyer tries to ghost them after months of work. It's basically a pre-nup for the house-hunting relationship.

Example Usage

Before I show you any properties, I'll need you to sign a buyer broker agreement—I promise I'll earn my commission.

Origin

Emerged in the 1990s as buyer agency became more formalized and agents sought protection from buyer poaching

Fun Fact

Some states require buyer broker agreements by law, while others leave it optional, leading to wild variations in how buyer agents secure their compensation.

Source: Real estate representation contract terminology

Related Terms

Beginner

principal residence

The home where you live most of the year, receiving favorable tax treatment including capital gains exclusions and mortgage interest deductions. The IRS cares deeply about distinguishing this from your 'vacation home' to prevent creative accounting.

🏠 Real Estate

Advanced

cadastral map

A comprehensive, scale-accurate map showing property boundaries, ownership parcels, and sometimes tax assessments for an entire jurisdiction. Think of it as the government's meticulous diagram of who owns every square inch of land.

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Intermediate

flood zone

A FEMA-designated area with specific flood risk levels that determine insurance requirements and costs. It's the government's way of telling you that 'waterfront property' might be more literal than you hoped.

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Beginner

Home Inspection

The process of paying someone $500 to tell you everything that's wrong with a house you already emotionally committed to buying. It's like a medical checkup for your dream home, except the diagnosis is always terrifying.

🏠 Real Estate

Intermediate

Flip

The practice of buying a terrible house, slapping on some gray paint and vinyl plank flooring, then selling it for twice the price. Thanks to reality TV, every person with a hammer now considers themselves a real estate mogul.

🏠 Real Estate

Advanced

right of first refusal

A contractual right giving someone the first opportunity to purchase a property before the owner can sell to others. It's like a permanent dibs on real estate.

🏠 Real Estate

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