A Real Estate Buyer's Broker represents the best interest of buyers of real estate and attempts to not only find the best property to meet the buyer's needs but also is obligated to work as the buyer's advocate and to get the buyer the best price and the best terms on the property that best suits their needs. In the United States, the relationship was originally established by reference to the English common law of agency with the broker having a fiduciary relationship with his buyer clients.
Other Real estate brokers and their salespersons (commonly called "real estate agents") assist sellers by listing and marketing their property, and then selling it for the highest possible price and best possible terms. When acting as a Buyer's agent with a signed agreement, these Realtors assist buyers by helping them purchase property on a level playing field. Always make sure you have a written buyer agency agreement, because if you do not Realtors, Brokers, and Agents may assist buyers in the acquisition of property while representing the seller and the seller's best interests. SO IT VERY IMPORTANT THAT ASK YOUR AGENT FOR A WRITTEN AGREEMENT THAT PROTECTS YOU FROM CONTRACT TO CLOSING!
In most states, until the 1980s, buyers who worked with an agent of a real estate broker in finding a house were customers of the brokerage, since the real estate brokers represented only sellers.
Today, state laws differ. Buyers and/or sellers both may be represented. A written "Buyer Brokerage" agreement is typically required for the buyer to have proper representation (regardless of which party is paying the commission).
Buyers as Clients -A real estate brokerage attempts to do the following for the buyers of real estate only when they represent the buyers with some form of written Buyer Brokerage agreement:
- Find real estate in accordance with the buyers needs, specifications, and affordable.
- Takes buyers to and shows them properties available for sale.
- When deemed appropriate, pre-screens buyers to ensure they are financially qualified to buy the properties shown (or uses a mortgage professional to do that task).
- Negotiates price and terms on behalf of the buyers and prepares standard real estate purchase contract by filling in the blanks in the contract form. The buyer's agent acts as a fiduciary for the buyer.
In many jurisdictions, particularly those in the United States, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. In particular, any of the following descriptions could refer to a real estate broker in the USA:
- A licensed person owning, managing, or being in charge of a real estate brokerage firm, even if the broker just works for him- or herself.
- The real estate brokerage itself: the brokerage is the firm or business of the broker which can also be called a real estate agency.
- A licensed real estate professional who has obtained a broker's license (which entitles them to operate a real estate brokerage). By default, a real estate broker of this kind has already met the requirements of "salesperson" or "agent" licensure. A real estate broker can still be designated as such without owning a real estate brokerage.
- Some people may refer to any licensed real estate agent as a real estate broker. However, a licensed real estate agent is a professional who has obtained either a real estate salesperson's license or a real estate broker's license. Sales people work under the guidance of a Broker who is ultimately responsible for the salesperson's actions as an agent. Therefore real estate agent are agents of the broker who is the real agent for the client.
- A Realtor is a real estate agent or a real estate broker who has taken their professionalism to the next step by committing to a Code of Ethics. Only about 50% of real estate agents are Realtors. The choice it up to you! Do you want to work with a real Realtor or a real estate agent?