When it comes to buying or selling a house, many people turn to a realtor for assistance. Realtors are licensed professionals who are trained to negotiate real estate transactions on behalf of their clients. However, before you begin working with a realtor, you may wonder whether you need to sign an agreement with them.
The answer is yes, you should sign an agreement with your realtor. A realtor agreement, also known as a buyer or seller representation agreement, is a legal document that outlines the terms of your working relationship with your realtor. It’s a way to protect both you and your realtor and ensure that everyone is on the same page.
Here are some of the key things you need to know about realtor agreements:
1. They are legally binding.
A realtor agreement is a legally binding contract, which means that both you and your realtor are obligated to follow its terms. If you breach the agreement, you could be subject to legal action.
2. They outline the scope of the relationship.
A realtor agreement will outline the scope of the relationship between you and your realtor. This includes details about what services your realtor will provide, how long the agreement will last, and how much you will pay in commission.
3. They protect your interests.
A realtor agreement is designed to protect your interests as a buyer or seller. For example, the agreement may include provisions for how your realtor will negotiate on your behalf, how they will handle confidential information, and how they will disclose any potential conflicts of interest.
4. They can be customized.
Realtor agreements can be customized to meet the specific needs of each client. For example, you may want to include provisions for how your realtor will market your property, or you may want to specify how many homes your realtor can show you before you make a decision.
In conclusion, signing an agreement with your realtor is an important step in any real estate transaction. It provides clarity and protection for both you and your realtor and ensures that everyone is working towards the same goal. If you’re unsure about the terms of a realtor agreement, don’t hesitate to ask your realtor for clarification or seek advice from a real estate attorney.