Glossary

Buyer Representation Agreement

Also known as: buyer broker agreement, BRA, BRA

A contract between a prospective buyer and a broker establishing an exclusive, or non-exclusive, agency relationship, defining the broker's scope of authority, compensation, and duration, before the broker begins actively representing the buyer's interests.

In CRE, buyer representation agreements are less universal than in residential brokerage but are increasingly standard for institutional buyers and tenant-rep engagements, particularly where the buyer's fee is not simply absorbed through the seller's commission via co-brokerage. The agreement should specify whether representation is exclusive — the buyer works only through this broker for a defined property type or market during the term — and address what happens to the fee obligation if the buyer ultimately transacts on a property the broker never showed them, or if the seller declines to offer co-brokerage compensation, in which case the agreement may obligate the buyer to pay the broker directly. A clearly drafted buyer representation agreement also formally establishes the fiduciary relationship underlying a buyer's-agent designation, which matters if a dual-agency or procuring-cause dispute later arises.