Real Estate Buyer’s Agent Agreement
There are many advantages to having a real estate buyer’s agent agreement, especially when purchasing property in a foreign country. For the potential buyer, it makes navigating what can be a complicated process much easier. In a foreign country where there are different business practices as well as banking and property regulations, a broker becomes a critical ally.
The Number 1 Reason for a buyer agent Agreement. Is the lack of MLS and dual agency conflicts in Costa Rica. (see the blog on this) make transactions dangerous to say the least for any potential buyer. This agreement clarifies who the broker is representing, you or the seller.
Costa Rica makes it easy for foreigners to purchase property but the process can be complicated. The guidance of an expert is really essential to successfully navigating the process and avoid pitfalls. A formal agreement should create clarity between both parties, set expectations, and define the terms of the business engagement.
A buyer’s agent will assist with the following:
- Negotiating price, terms and conditions
- Prepare purchase contract
- Setting closing date
- Pre-closing prior documents that will be required by the attorney
- Review home inventory
- Check property zoning laws
There are two types of broker relationships:
A non-exclusive agreement usually has no time period. The prospective buyer enlists the help of an agent on a non-exclusive basis to assist in the search for a property. Under such an agreement, the buyer is free to engage other agents in the search process. The buyer does not have to pay the agent commission if the broker is paid by another party such as the seller. The buyer may purchase a property through another broker not introduced by the first broker. The question here is who is representing you. Is the agent representing the seller or you the buyer.
An exclusive agreement ranges between three months to a year. During this time, the prospective buyer engages the exclusive services of an agent in their search for a property. Under these terms, the purchaser can only work with the broker under contract. The advantages of such an agreement is the broker is motivated to work harder to find the perfect match for the buyer. The fees are still paid by the seller. No fees to the buyer.
In Costa Rica, there are many advantages to a broker’s agreement for foreign buyers. The broker fills the role of a much-needed liaison and provides vital assistance in navigating the world of real estate. They can explain business regulations as well as property and banking laws. A broker also costs less than accumulating a per hour attorney fee and they tend to be more knowledgeable about the real estate market and efficiently help you find the right real estate match and the broker represents your interests.
While brokers are not required in Costa Rica, they are highly recommended especially for foreigners purchasing real estate. As a foreigner, you will encounter different laws as well as cultural expectations of how business transactions take place, an agent will help you navigate the process smoothly to ensure a successful purchase.
Contact me anytime to discuss these issues and how we can help you find the best solution to your real estate needs in Costa Rica. We have sample contracts for your review.
Exclusive Homes Costa Rica is a full-service real estate company that helps buyers and sellers acquire and retail property. Exclusive Homes is locally owned and operated by Shawn Ferguson and Dennis Lara and offers experience and expertise at development and management of residential vacation properties, as well as commercial, office, and mixed-use developments in Costa Rica.