What is a Buyer Brokerage Agreement and Why Do I Need to Sign One?

Georgia law requires that all buyers sign either a Customer Acknowledgment or a Buyer Brokerage Agreement.  The difference between these two documents is critical because it establishes the type of relationship a buyer will have with his or her real estate professional.

Customer Acknowledgment 

If a buyer signs a Customer Acknowledgment, under Georgia law, he or she is considered a customer.  Georgia law permits real estate agents to perform only ministerial duties to customers.  Such duties include:

• Providing information regarding active listings;
• Showing properties; and
• Providing blank forms, such as the purchase and sale agreement, to the buyer.

A real estate agent cannot advise a buyer who is a customer regarding how much to offer or draft the offer.  Moreover, a real estate agent cannot negotiate on behalf of a buyer who is a customer.

Buyer Brokerage Agreement

If a buyer signs a Buyer Brokerage Agreement, under Georgia law, he or she is considered a client.  Georgia law permits real estate agents to perform a wide range of services to buyers who are clients.  These services include:

• Providing information regarding available listings;
• Showing properties;
• Providing information and advice on how much to offer;
• Drafting the offer and other necessary documents;
• Negotiating with the seller or the seller's representative; and
• Assisting the buyer throughout the process until the transaction closes.

As you can see, there are significant differences between what you get as a customer and what you get as a client.  In my experience, once a buyer understands the benefits of signing a Buyer Brokerage Agreement, he or she is eager to sign.

If you have questions about buyer or selling a home, please visit my website at http://atlantarealestategenie.com and click the "Contact Me" link in the upper right hand corner or give me a call at 678-446-5925.