What best describes a buyer agency agreement?

• A. An agreement between the seller and a broker
• B. An agreement between the broker and the buyer
• C. A loan agreement between borrower and lender
• D. A contract used for property management

Answer: (B)

A buyer agency agreement is a contract that formalizes the broker’s representation of the buyer in a real estate transaction. It creates the relationship where the broker acts in the buyer’s best interests, helping locate properties, evaluate options, and negotiate offers. The agreement outlines what services the broker will provide, how long the representation lasts, and how the broker will be compensated. This is distinct from a listing agreement, which is between a seller and a broker, and from loan or property management contracts, which involve financing or property upkeep rather than buyer representation.