March 2025
A Buyer Representation Agreement is required when a broker or principal broker assists a buyer in searching for or buying real estate. It clarifies the responsibilities, expectations, and compensation arrangements. The agreement protects both the buyer and the agent by ensuring transparency and establishing clear guidelines for the property search and purchase process.
Q. What is a Buyer Representation Agreement?
A. It is a contract between an agent (broker or principal broker) and a buyer of real estate. It authorizes the agent, in exchange for compensation, to act on behalf of the buyer in the purchase of real estate or in identifying real estate to purchase.
Q. When do I need a Buyer Representation Agreement?
A. Before, or as soon as practicable after, you have started efforts to assist a buyer in purchasing real estate or identifying real estate for purchase. You do not need a Buyer Representation Agreement for a commercial transaction or property with five or more residential dwellings.
Q: I am a licensee who is also a member of the National Association of Realtors (NAR). Is the timing for entering into a Buyer
Representation Agreement the same for me?
A: Realtor members should stay informed about requirements related to their membership. The most recent information on the NAR's
website offers the following advice to buyers:
When do I need to sign an agreement?
You will be asked to enter into a written buyer agreement with your real estate professional before “touring" a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.
For the most up-to-date information, reach out to your local Realtor association.
When advising your clients, it is important to distinguish between Oregon's laws and rules relating to your duties as an agent versus the requirements of your NAR membership.
Q. What must be in a Buyer Representation Agreement?
A. A Buyer Representation Agreement must state:
- If it is exclusive or nonexclusive.
- The legal obligations of the agent as described in Oregon Revised Statue (ORS) 696.810, or by reference to the Initial Agency Disclosure Pamphlet.
- The licensee's license number.
- The name and contact information of the principal broker responsible for supervising the licensee, as applicable.
- The effective date and expiration date, and the term can be no longer than 24 months.
- The buyer's general search criteria, which may include the price range and the location.
- An explanation of how the agent may be compensated.
- The termination rights for both buyer and agent.
Q. I am a listing agent hosting an open house for a property, Must a buyer have a signed Buyer Representation Agreement with either me or another agent to view the property?
A. No. A buyer is not required to have a signed Buyer Representation Agreement to tour an open house. If the buyer decides they would like to purchase that particular property, they could choose to:
- Be unrepresented, with you representing the seller only.
- Sign a Buyer Representation Agreement and a Disclosed Limited Agency Agreement with you, if agreed to by both buyer and seller.
- Sign a Buyer Representation Agreement with another licensee.