A buyer listing grants an agent the right to locate property for a buyer in return for a commission upon the close of a transaction.
Buyer listings must be made in writing. The agreement must also include the termination date and the commission structure in order to be enforceable.
Buyer listings are very common in the world of investment properties. Investors will typically contract with an agent in order to find exclusive property deals. The terms of a buyer listing are dependent on the goals of the buyer. Because an investor’s goal is to make money, he or she will typically utilize buyer listings with a quick termination date. This gives him or her the flexibility to find other properties in the event that the agent could not find solid business opportunities.
Similar to the aforementioned exclusive listings for sellers, buyer listings can be exclusive.
An exclusive buyer listing ensures that an agent is paid a commission, regardless of whether the agent or the buyer found a property.
