Which type of agreement allows a broker to negotiate a set commission with a buyer?

The exclusive right to represent buyer/broker agreement is designed to grant a broker the authority to act as a buyer's exclusive agent during the home-buying process. This type of agreement allows the broker to negotiate a commission with the buyer and enables the broker to receive that commission upon the successful purchase of property, regardless of who actually finds the property.

This structure serves to protect the broker's interests by ensuring they are compensated for their services, and it offers buyers the benefit of having a dedicated advocate to assist them in finding a property that meets their needs. The implications of such an agreement are significant in establishing a clear and formal relationship between the buyer and the broker, ensuring mutual understanding regarding fees and obligations.

Other types of agreements, like expressed contracts and unilateral contracts, do not specifically emphasize the commission negotiation aspect in the context of a buyer-broker relationship. Non-exclusive agreements typically allow multiple brokers to represent the buyer, which may inhibit the broker’s ability to negotiate a fixed commission effectively.