Updated June 03, 2022
A Washington D.C. buyer agency agreement is a legal document that an aspiring homebuyer uses to contract with an agent to represent the buyer in the purchase of real estate. Buyer agency agreements enable real estate agents to represent clients’ interests and make decisions on behalf of a client, which is especially important for in-demand real estate markets. The agent, who in the District is also referred to as a “licensee,” can search properties that meet the buyer’s demands, negotiate a price, and handle the paperwork needed to close a purchase. In return, the agent will receive a commission, typically a percentage of the home’s purchase price. When the seller of the property changing hands is also represented by a different agent, the two will usually split commission.
Disclosures
When an agent is speaking with either a potential seller or buyer about a parcel of property, the agent should disclose the agent relationship at the earliest practicable time. The disclosure shall take the following form (D.C. Municipal Regulations, Rule 17-2613 (Agency Disclosure)):
(a) Disclosure of Brokerage Relationship.
THIS NOTICE IS REQUIRED BY LAW AND IS NOT A CONTRACT.
THIS DISCLOSURE DOES NOT CREATE A BROKERAGE RELATIONSHIP.
Disclosure of Brokerage Relationship
District of Columbia
Prior to providing specific real estate assistance, District of Columbia law requires that a licensee disclose to any party who the licensee does NOT represent the identity of the party to the proposed transaction who the licensee does represent. Even though a licensee may not represent you, that licensee must still treat you honestly in the transaction.
We, the undersigned q Buyer(s)/Tenant(s) or q Seller(s)/Landlord(s) acknowledge receipt of this Disclosure, and understand we are NOT represented by the licensee identified below.
__________________________________________and____________________________________________
(Licensee & License #) (Brokerage Firm)
The licensee and brokerage firm named above represent the following party in the real estate transaction:
[ ] Seller(s)/Landlord(s) (The licensee has entered into a written listing agreement with the seller(s) or landlord(s) or is acting as a sub-agent of the listing broker.)
[ ] Buyer(s)/Tenant(s) (The licensee has entered into a written agency agreement with the buyer/tenant.)
[ ] Designated Agent of the [] Buyer(s)/Tenant(s) or []Seller(s)/Landlord(s)
(Both the buyers and sellers have previously consented to “Designated Agency”, and the licensee listed above is indicating the parties represented.
_________________________________________________________________________________________
Acknowledged Date
_________________________________________________________________________________________
Acknowledged Date
Dual Representation
Some agents may seek to represent both the buyer and the seller. This is known as “dual representation.” Sometimes the parties may find it preferable: because the agent does not have to split the commission, the agent may agree to take a smaller percentage, leaving more money for the seller and less cost for the buyer. Dual representation is permitted in the District, but both parties must agree to this arrangement in writing. There are also slightly different disclosure requirements for a dual representation agreement (Rule 17-2613).