Which document designates the buyer as the client in a real estate engagement?

Which document designates the buyer as the client in a real estate engagement?

• A. Listing agreement
• B. Buyer Representation Agreement
• C. Mortgage Note
• D. Deed

Answer: (B)

In real estate, establishing who the broker owes fiduciary duties to is done through an agency agreement. The document that makes the buyer the client and creates that representation is the Buyer Representation Agreement. It formally states that the buyer is the client, outlines the broker’s duties to the buyer, and often covers scope of services, compensation, and term of the relationship. The listing agreement is used when representing a seller, so it designates the seller as the client, not the buyer. A mortgage note is simply a loan instrument between borrower and lender, not a contract that creates agency. A deed transfers ownership of property, not representation or duties between a buyer and a broker.

In real estate, establishing who the broker owes fiduciary duties to is done through an agency agreement. The document that makes the buyer the client and creates that representation is the Buyer Representation Agreement. It formally states that the buyer is the client, outlines the broker’s duties to the buyer, and often covers scope of services, compensation, and term of the relationship. The listing agreement is used when representing a seller, so it designates the seller as the client, not the buyer. A mortgage note is simply a loan instrument between borrower and lender, not a contract that creates agency. A deed transfers ownership of property, not representation or duties between a buyer and a broker.