Texas Real Estate State Practice Exam

A buyer's representation agreement establishes an agency relationship between the buyer and the real estate agent. This type of relationship means that the agent acts on behalf of the buyer, representing their interests in the real estate transaction. The agreement outlines the responsibilities and obligations of both the agent and the buyer, including the agent's duty to provide loyalty, disclosure, and confidentiality to the buyer.

This agency relationship is crucial because it empowers the agent to negotiate on behalf of the buyer, provide advice, and seek properties that meet the buyer's needs. The agreement typically specifies the duration of the representation, the compensation structure, and any specific services the agent will provide.

In contrast, other types of relationships, such as a seller-agent relationship or a property manager-tenant relationship, involve different parties and responsibilities. The broker-client relationship, while important in a general sense, does not specify the nature of the specific agency duties owed to a buyer in the context of a buyer's representation agreement.