Real Estate Term of the Day: Buyer’s Broker

Real Estate Term of the Day: Buyer’s Broker

BUYER’S BROKER – an agent hired by a prospective purchaser to find an acceptable property for purchase.  The broker then represents the buyer and negotiates with the seller in the purchaser’s best interest (Barron’s Dictionary of Real Estate Terms)

See also: AGENCYAGENCY DISCLOSURE, AGENTBROKER

In the State of Colorado, buyer brokers (or buyer agents) have additional duties that are owed to the buyers.  In the Colorado Brokerage Disclosure to Buyer document a buyer’s broker (buyer’s agent) is defined as: A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the buyer. The buyer’s agent must disclose to potential sellers all adverse material facts actually known by the buyer’s agent, including the buyer’s financial ability to perform the terms of the transaction and, if a residential property, whether the buyer intends to occupy the property. A separate written buyer agency agreement is required which sets forth the duties and obligations of the broker and the buyer.

Furthermore, the Colorado Exclusive Right-To-Buy Listing Contract sets forth all duties to be fulfilled by the buyer’s broker.  This is the legal document that forms the relationship between buyer and buyer broker (buyer’s agent).


Add a comment...

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s