If you are on the lookout to purchase a new asset such as a home or car, then you might consider using a buyer’s agent. A buyer’s agent will act on your behalf throughout the process of acquiring this asset.
If this is an approach you are taking, you must ensure that you have signed a Buyers’ Agency Agreement with the person representing you in the deal.
In short, a buyers’ agency agreement will set out the services the agent will perform, as well as the other terms and conditions of the agreement. The the aim of the agreement is to protect the parties in case anything goes wrong.
What Should be Included?
To ensure that there is a valid agreement between yourself and the agent, you must ensure that the agency agreement contains the following information:
- The parties to the agreement;
- A description of the property;
- The period of the agreement;
- The level of service required under the agreement – price negotiations, appraisals etc;
- Commissions, fees and expenses – how much the agent charges for the service.
Ensuring that the agreement contains all the necessary information, will mean that the agreement is enforceable if there is a breach by either party.
Benefits of using a Buyer’s Agent
Buyer’s agents are trained in their field and hence provide you with a high level of expertise. From the buyer’s perspective, using an agent saves you the effort and stress of researching and shortlisting properties, as well as inspecting and negotiating on price.
Furthermore, a buyer’s agent may be able to provide you with information that is not readily available to the market such as off-market opportunities, considering their access to databases, networking and local market knowledge.
Key Takeaways
A buyer’s agent can be an effective way of purchasing a desired asset, with a valid buyers’ agency agreement being the key tool in the arrangement.
There are multiple benefits of entering an arrangement with a buyer’s agent, but you must ensure that you understand what it means for you as the buyer, in terms of costs and other conditions.
It is highly recommended to get any form of contract reviewed by a lawyer.
If you wish to speak with one of your lawyers on this issue, please feel free to contact us on 1300 337 997.
Jethro is a paralegal. His main legal interests are with Intellectual Property, Technology and Innovation, as well as areas of Corporate Law. He is in his final year of a Bachelor of Laws/Bachelor of Economics double degree at the UTS.
Phil is a director at OpenLegal. He has over 16 years experience working in private practice and in-house counsel in Sydney and London, giving him expertise in employment law, IP, finance, leases, dispute resolution, insurance and contracts.
