Many buyers today ask a REALTOR^® to represent their interests in a real estate purchase. It’s a good idea to have a professional looking out for your interests when discussing your ability to purchase and negotiate an offer. But many people do not understand how to establish buyer representation.

Tennessee law requires a written agreement that clarifies each party’s responsibilities in a transaction to establish buyer representation. It’s a contract executed by you and your buyer’s agent.

The Tennessee Association of REALTORS^® (TAR) publishes a form for this purpose. There are other forms with variances, but they are all very similar. Here are a few selected responsibilities from the TAR â form known as Buyer Representation Agreement.

The brokerage company of the buyer’s agent agrees:

1. to use all diligence in locating property(ies) which meets Client’s (buyer) requirements and approval;
   
2. to act on behalf of Client in any negotiations for the purchase of property(ies) acceptable to Client;
   
3. to use professional knowledge and skills in assisting the Client throughout the transaction; and
   
4. to exercise all duties to the Buyer as set forth in Tennessee Law and Regulation, including the duties common to all consumers as well as those duties reserved for agent-client relationships.

The Client agrees:

1. to furnish Broker on a timely basis with any necessary personal and/or financial information to assist Broker in locating the desired property(ies) and to ensure Client’s ability to purchase;
   
2. to authorize Broker to negotiate for a fee paid by the Seller and/or the Seller’s agent, the payment of which will be fully disclosed to the Client. If a fee is not offered or paid to Broker, as could occur, for example, in the purchase of an unlisted property, Client agrees to pay Broker a total of $________.__, or _________ % compensation based on the total sales price.

It is important to note that a REALTOR^® may provide real estate services to any party in a prospective transaction, with or without an agency relationship such as buyer representation to one or more parties to the transaction. Just be aware that until you and the agent have signed an agreement the agent is considered a facilitator and shall not be considered an agent or advocate for any party to the transaction.

According to Tennessee law, if an agent assists a prospective buyer or seller in the purchase or sale of a property, and such buyer or seller is not represented by this or any other agent, the agent shall verbally disclose to such buyer or seller his agency relationship before any real estate services are provided. The commonly used form for this written disclosure is known as Confirmation of Agency Status. This is simply an acknowledgement that disclosure has occurred; it is not a Buyer Representation Agreement.