What is a buyer agency agreement?

A buyer agency agreement is indeed a contract that establishes a relationship between a home buyer and an agent. This agreement formalizes the responsibilities and expectations of both parties, outlining the agent's duty to represent the buyer's interests during the home-buying process. It also typically includes provisions regarding confidentiality, the scope of the agent's services, and compensation terms.

This contract is crucial as it clarifies that the agent is working on behalf of the buyer, ensuring that the agent's advice and actions are aligned with the buyer's goals, thus fostering a fiduciary relationship. The establishment of such a relationship can enhance the efficiency and effectiveness of the home-buying process.

In contrast, the other options refer to different aspects of real estate transactions rather than the specific relationship defined by a buyer agency agreement. For example, a legal document for closing real estate sales pertains to the finalization of a transaction, while an agreement that guarantees commission focuses more on compensation structures and isn’t the primary intent of a buyer agency agreement. Lastly, a form filled out during property inspection is not directly related to establishing a buyer-agent relationship but rather addresses property assessment procedures.