What is the difference between a buyer’s agency agreement and a listing agreement?

A buyer's agency agreement is designed to establish a formal relationship where the real estate broker represents the buyer's interests in the property transaction. This agreement ensures that the broker has a fiduciary responsibility to act in the best interest of the buyer, guiding them through the purchasing process and advocating for their needs.

On the other hand, a listing agreement establishes a relationship where the broker represents the seller. This agreement empowers the broker to market the seller's property and negotiate on their behalf. The listing agreement focuses on promoting and facilitating a successful sale of the property owned by the seller.

This clear distinction in representation—where a buyer’s agency agreement focuses on the buyer's interests and a listing agreement centers on the seller's interests—is fundamental in real estate transactions. Both agreements play vital roles in ensuring that each party's needs are addressed correctly, but they cater to different clients within the transaction.