Home Buyer Education

Begin your homebuying journey with confidence through our Home Buyer Education Page. Here, we offer answers to frequently asked questions, free consumer guides providing valuable insights, and a comprehensive understanding of the Buyer's Representation Agreement.  Explore the pages of our "Complete Guide to Buying a Home," enhanced with a comprehensive step-by-step Homebuyer Guided Journal Workbook, and an enriching online educational course designed for both new and seasoned homebuyers. Empower yourself with knowledge as you navigate the path to homeownership.


A Buyer's Representation Agreement (BRA) is a legal contract between a prospective homebuyer and a real estate brokerage. In essence, it formalizes the relationship between the buyer and the brokerage, designating the brokerage as the exclusive representative of the buyer in a real estate transaction.

Key Elements of the Agreement
Terms and Time Frame: The agreement clearly outlines the terms of engagement and the specified time frame during which the buyer agrees to work exclusively with the designated brokerage.

Services Provided: It delineates the range of services that the brokerage commits to providing, ensuring transparency and setting expectations for the buyer.
Broker Fees: The agreement outlines any commission fees to be paid in the event a seller does not agree to pay the buyer's brokerage through the listing agreement, and the listing brokerages Cooperative Compensation Agreement – commission fees can range between 1% to 3% of the final sales price.

Client vs. Customer Status: Signing a Buyer's Representation Agreement elevates the buyer to the status of a client rather than a customer. This distinction carries significant legal implications, offering the buyer enhanced protection and advocacy.

Expectations and Duties: The agreement explains the expectations and duties of both the real estate agent and the brokerage, as well as the responsibilities of the buyer throughout the course of the transaction.

Why Sign a Buyer's Representation Agreement?
Exclusive Representation: The agreement gives the brokerage rights to represent the buyer, negotiate on the buyer's behalf, ensure undivided loyalty and dedication throughout the home buying process.

Legal Protection: By becoming a client, the buyer gains legal protection and representation in negotiations. This is a crucial safeguard, especially in complex real estate transactions.

Defined Scope of Services: The agreement clearly defines the services that the brokerage will provide, offering transparency and clarity about what the buyer can expect.

Focused Attention: Working under a Buyer's Representation Agreement ensures that the buyer receives focused attention from their agent, leading to a more personalized and tailored homebuying experience.

Negotiability and Understanding
Contracts in real estate are negotiable, and the Buyer's Representation Agreement is no exception. If you encounter any clauses or terms that you disagree with, discuss them with your agent and request amendments if necessary. Never sign anything you don't understand, and do not delay to seek clarification on any aspects of the agreement.  Essentially, the agreement is designed to protect your interests and ensure a smooth and successful homebuying experience. By working closely with your agent and understanding the terms of the agreement, you can navigate the process with confidence and peace of mind. Further understand that commissions are not fixed by law.

Do I Have to Sign a Buyer's Representation Agreement?
It is important to note that each office operates independently and may have its own requirements regarding this agreement. Effective July 1, 2024, following recent lawsuit settlements involving the National Association of Realtors (NAR), the local California Association of Realtors (CAR) is taking immediate actions before the courts final rulings - CAR is making it a requirement for prospective home buyers to sign a Buyer's Representation Agreement with their brokerage prior to showing any properties.  Opting for this agreement empowers buyers with dedicated representation, legal protection, and a streamlined, professional homebuying experience.

Brokerage Variations and Commission Fees
It's essential to note that each brokerage office is independently owned and operated, and the formality of the Buyer's Representation Agreement may vary based on the brokerage and/or agent. However, the California Association of Realtors provides a standardized Buyer's Representation Agreement that California owned brokerages may implement.  Within this agreement, buyers should be aware of any commission fees charged by the brokerage for their services.  Understand that commissions are not fixed by law and may vary by brokerage. 

How Do Real Estate Agents Get Paid
Real estate agents are independent contractors and only get paid when a sale is finalized – they do not get paid an hourly rate as if they worked for the local city or state. If the agent does not finalize a sale, then they do not get reimbursed or paid for services rendered.

For a more in-depth exploration of the topic, refer to my new book, "Complete Guide to Buying a Home: Your Roadmap to Successful Homeownership." This resource provides detailed insights into the complexities of real estate transactions, ensuring that buyers navigate the process with knowledge and confidence.  In conclusion, understanding and signing a Buyer's Representation Agreement is a pivotal step in the real estate journey. It transforms the buyer from a mere customer into a valued client, unlocking a realm of benefits and ensuring a smoother, more secure homebuying experience.

Free Consumer Guide:

If you are thinking about buying your first home or another home, then this guide is for you. We delve into understanding the right time to buy; is buying the right decision for you and comparing renting vs buying. This short guide will give you enough information to ask any real estate agent the right questions to help you get started with the home buying process.

Complete Guide to Buying a Home

Complete Guide to Buying a Home: Your roadmap to successful homeownership. This comprehensive guide provides essential insights and practical steps for homebuyers. Navigate the homebuying process with confidence, from understanding the market to choosing the right loan and securing your dream home. Maximize your investment and achieve a successful homeownership journey. This book includes a companion Homebuyer Guided Journal Workbook and an online educational course to enhance your learning experience.