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Why You Should Sign a Buyer Agency Agreement Before Touring Properties in Maryland

I just had a group chat with fellow real estate agents, and we all have experienced that some clients are reluctant to sign an agreement—especially if you have no previous connection with them. However, this step is essential for everyone’s protection, and here is why-


When you start looking for a home in Maryland, it might seem natural to visit properties right away. However, new laws in Maryland emphasize the importance of signing a buyer and real estate agreement before touring homes. This agreement protects both buyers and agents, clarifies expectations, and ensures a smoother home-buying process. Understanding why this step is important can save you time, money, and stress.



What Is a Buyer and Real Estate Agreement?


A buyer and real estate agreement is a contract between a homebuyer and a real estate agent or brokerage. It outlines the terms of their working relationship, including:


  • The agent’s duties and responsibilities

  • The buyer’s obligations

  • How commissions will be handled

  • The duration of the agreement

  • Any exclusivity clauses


This agreement sets clear rules before any property tours or negotiations begin. It helps both parties understand what to expect and protects their interests.


New Maryland Law and Its Impact on Homebuyers


Maryland recently updated its real estate laws to require clearer documentation of buyer-agent relationships. This change aims to reduce misunderstandings and disputes during the home-buying process. Under the new law, agents must have a signed agreement with buyers before showing properties.


The law benefits buyers by:


  • Ensuring agents are committed to representing their interests

  • Preventing agents from showing homes to buyers without a formal relationship

  • Clarifying commission arrangements upfront


For agents, the law provides legal protection and confirms their role in the transaction.


You can read more about the Maryland Real Estate Commission’s guidelines here: Maryland Real Estate Commission.


Why Signing the Agreement First Protects You


Avoid Confusion About Agent Representation


Without a signed agreement, it’s unclear who the agent represents. Agents can work for sellers, buyers, or both, but their duties vary based on the

representation. Signing the agreement confirms that the agent works for you, the buyer, and must act in your best interest.


Prevent Unexpected Costs


The agreement spells out how commissions will be paid. Sometimes buyers assume agents work for free, but commissions often come from the seller’s side or are negotiated differently. Knowing this upfront avoids surprises later.


Save Time and Focus Your Search


Agents invest time and resources to find homes that match your needs. The agreement encourages mutual commitment, so agents prioritize serious buyers. This focus helps you tour properties that fit your criteria, rather than wasting time on unsuitable options.


Legal Protection in Case of Disputes


If disagreements arise about commissions or agent duties, a signed agreement serves as evidence. It protects your rights and clarifies responsibilities, reducing the risk of costly legal battles.


What to Look for in a Buyer and Real Estate Agreement


Before signing, review the agreement carefully. Key points to check include:


  • Duration: How long does the agreement last? Can you cancel it if needed?

  • Exclusivity: Are you required to work only with this agent during the agreement period?

  • Commission: How is the agent paid? What happens if you buy a property without the agent’s help?

  • Agent’s Duties: What services will the agent provide? Will they help with negotiations, inspections, and paperwork?

  • Termination: How can either party end the agreement?


Ask questions if anything is unclear. A trustworthy agent will explain terms and respect your decisions.


Practical Example: How the Agreement Works in Real Life


Imagine you start touring homes without signing an agreement. You find a house you love and make an offer. Later, another agent claims you never signed with your first agent and demands a commission. This situation can lead to confusion and legal disputes.


With a signed agreement, your agent has clear authority to represent you. You avoid conflicts about who helped you and how commissions are handled. This clarity makes the buying process smoother and less stressful.


How to Sign the Agreement and Start Your Home Search


  1. Find a licensed Maryland real estate agent with good reviews and local knowledge.

  2. Discuss your home-buying goals and ask about their buyer agreement.

  3. Review the agreement carefully and ask for clarifications.

  4. Sign the agreement before touring properties.

  5. Work closely with your agent to find homes that fit your needs.


This process builds trust and ensures your agent is fully committed to helping you.


Additional Resources for Maryland Homebuyers


These sites offer helpful information about laws, agents, and the home-buying process, or connect with Anda Palvnieks, Realtor, for referral to an agent in your area.




 
 
 

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