When it comes to buying or selling a property, the involvement of a broker is almost always necessary. Brokers are professionals who act as intermediaries between buyers and sellers, connecting them and facilitating the entire buying/selling process. But who signs the agreement between brokers?
The answer to that question is quite simple – brokers themselves sign the agreement. The agreement is a document that outlines the terms and conditions of the broker`s involvement in the transaction. It lays out the obligations and responsibilities of the broker and the client, the compensation that the broker will receive, and other important details.
In most cases, the agreement is signed by the broker who represents the seller. This is because the seller usually pays the commission to the broker, and the broker is responsible for finding a buyer who is willing to pay the price that the seller is asking for. However, in some cases, the buyer may also hire a broker, and in such cases, both brokers will sign the agreement.
It is important to note that the agreement between brokers is not legally binding on the parties involved in the transaction. It is a document that governs the relationship between the brokers only. The parties involved in the transaction, such as the buyer and the seller, will sign a separate agreement which will be legally binding.
The agreement between brokers is usually drafted by the seller`s broker and presented to the buyer`s broker. Both brokers will review the agreement and negotiate the terms and conditions. Once both parties have agreed on the terms, they will sign the agreement, and it will become effective.
In conclusion, brokers sign the agreement between themselves, outlining the terms and conditions for their involvement in the transaction. It is not legally binding on the parties involved in the transaction, but it is an important document that governs the relationship between the brokers. If you are planning to buy or sell a property, make sure to hire a reputable broker who can guide you through the entire process and help you get the best deal possible.