What type of brokerage agreement is typically used to represent a buyer in a real estate transaction?

The type of brokerage agreement typically used to represent a buyer in a real estate transaction is known as a Buyer's Brokerage Agreement. This agreement establishes a formal relationship between the buyer and the real estate broker, outlining the broker's obligations to assist the buyer in locating and purchasing a property.

Under a Buyer's Brokerage Agreement, the broker has a fiduciary duty to the buyer, which includes loyalty, disclosure, and the duty to negotiate on behalf of the buyer’s best interests. This contractual arrangement often includes terms regarding the duration of the agreement, any fees or commissions, and the scope of services the broker will provide. It solidifies the buyer's commitment to working exclusively with that broker during the agreed timeframe, providing the broker with the incentive to invest time and resources into finding the right property for the buyer.

The other options represent different types of brokerage agreements that pertain to sellers or involve different arrangements that do not focus specifically on a buyer's representation. For instance, an Exclusive Listing Agreement typically pertains to sellers, granting a broker exclusive rights to sell a property, while an Open Listing Agreement allows multiple brokers to represent the seller concurrently without exclusivity. A Flat Fee Listing Agreement also concerns sellers who wish to list their property for a set fee instead of a