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BUYER

REPRESENTATION
AGREEMENT

 

Before we start viewing properties, we are required to have clients sign a Buyers agreement, which allows Compass and our team, as your agent, to legally and exclusively represent you and your interests. It establishes a formal relationship between us and outlines the terms and conditions under which we will represent you in your property search.

Essential Components of the

50 THINGS A BUYER’S AGENT DOES TO ENSURE A

KEY TERMS TO

A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (Adjustable Mortgage Loans) or VRMs (Variable Rate Mortgages).

The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one- year ARM, which means that the interest rate can change once a year.

Repayment of a loan in equal installments of principal and interest, rather than interest-only payments.

The total finance charges (interest, loan, fees, points) expressed as a percentage of the loan amount.

A buyer’s agreement to assume liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.

A lump sum principal payment due at the end of some mortgages or other long-term loans.

The limit on how much an interest rate or monthly payment can change, either of each adjustment or over the life of the mortgage.

A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.

The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.

A form of real estate ownership where the owner receives title to a particular unit and has proportionate interest in certain common areas. The unit itself is typically a separately owned space whose interior surfaces (walls, floors, and ceilings) serve as its boundaries.

A condition that must be satisfied before a contract is binding. For example, a sales agreement may be contingent upon the buyer obtaining financing.

A provision in some ARMs that enables you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed- rate mortgages. This conversion feature may cost extra.

A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.

The portion of the down payment delivered to the seller or escrow agent by the purchaser with a written offer as evidence of good faith.

A procedure in which a third party acts as a stakeholder for both the buyer and the seller, carrying out both parties’ instructions and assuming responsibility for handling all paperwork and distribution of funds.

A loan insured by the Insuring Office of the Department of House and Urban Development; the Federal Housing Administration.

Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by the FHA or guaranteed by the VA, as well as conventional home mortgages.

An estate in which the owner has unrestricted power to dispose of the property as they wish, including leaving by will or inheritance.

The total cost a borrower must pay, directly or indirectly, to obtain credit.

If you visit new construction communities on your own, please remember to register your agent. This will provide you with support from both the realtor and the developer through the building process.

A convenient way for listing agents to show a property. Typically Saturday and Sunday afternoons.

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THE BENEFITS OF

OFFERING
BUYER AGENT COMPENSATION

 

In the United States, real estate commissions can be paid by the seller, the listing agent, or the buyer. Continuing the practice of offering buyer compensation by the seller or listing agent increases the likelihood of having a professional buyer’s agent on the other side of the transaction and provides you with several advantages.

By paying commission or authorizing your listing broker to pay commission, you have

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