Quick Answer
A buyer's agency agreement is a written contract that hires a real estate agent to represent you as a buyer. It spells out what the agent will do for you, how long the agreement lasts, and how they get paid. In Indiana, having buyers sign an agreement before touring homes has become standard practice, and it makes the agent legally your advocate.
- What it is
- A contract hiring your buyer's agent
- Creates
- A fiduciary duty to you, the buyer
- Covers
- Duties, term length, and compensation
- Common in Indiana
- Signed before touring homes
- Negotiable
- Terms and length can be discussed
What the Agreement Does
A buyer's agency agreement turns a casual relationship into a formal one. Once you sign, your agent owes you fiduciary duties — loyalty, confidentiality, honest advice, and putting your interests first. Without an agreement, an agent you're working with may technically represent the seller or simply be a facilitator, not your advocate.
The document typically names the agent and brokerage, describes the services they'll provide, sets a time period, and often defines the geographic area or type of property you're searching for.
Why Agents Ask Buyers to Sign One
Recent changes in how real estate commissions are handled nationwide have made written buyer agreements the norm. Practically, many agents and MLS systems now expect buyers to have a signed agreement in place before touring homes. It protects you by making the agent's role and duties clear from the start.
Think of it less as a trap and more as a job description — it's the point where an agent officially goes to work for you.
How Buyer's Agents Get Paid
The agreement states how your agent is paid and by whom. Historically, sellers often covered the buyer's agent commission, and in many transactions that's still negotiated. But the agreement makes the arrangement explicit, so you know up front what you might owe if the seller doesn't cover it.
Compensation is negotiable and varies by transaction. Ask your agent to walk you through the numbers and how they fit into your overall closing costs.
What to Look For Before You Sign
Read the term length and whether it's exclusive. Ask what happens if you're not satisfied and how to end the agreement early. Make sure you understand the compensation section and any "protection period" that applies after it ends.
A good agent will happily explain every line. Learn more about buyer representation or reach out with questions before you sign anything.
Questions About Your Situation?
We'll walk you through it in plain English — no pressure, no obligation.
Frequently Asked Questions — Buyer's Agency Agreement
Do I have to sign a buyer's agency agreement?
In practice, most agents now ask you to sign one before showing homes, and it's become standard across the industry. The terms, including length, are negotiable, so discuss anything you're unsure about.
How long does a buyer's agency agreement last?
It varies. Some cover a single showing, others run for weeks or months. The length is negotiable, so ask for a term you're comfortable with before signing.
Can I cancel a buyer's agency agreement?
Often yes, depending on the terms. Many agreements include a way to end the relationship, but confirm the cancellation and any protection-period language before you sign.