Buyer Education • Know Your Rights
Your Agent Works for You
Understanding buyer representation and what it means for your Rhode Island home purchase.
The Basics
What Is a Buyer Agency Agreement?
A buyer agency agreement is a contract between you and your real estate agent that formally establishes the relationship. It defines what services your agent will provide, the geographic area covered, the term of the agreement, and how your agent will be compensated.
Most importantly, it means your agent is legally obligated to act in your best interest — not the seller's. This is called a fiduciary duty, and it includes honesty, loyalty, confidentiality, and full disclosure of anything that could affect your decision.
Prior to August 2024, buyers often worked with agents informally. Following the NAR settlement, buyer agency agreements are now standard practice across the industry — and they actually protect you more than they benefit us. Having your representation clearly documented means there are no surprises about who your agent is working for.
The Core Principle
Without a buyer agency agreement, no agent is legally required to represent your interests.
When you tour a home using the listing agent, that agent represents the seller — not you. A buyer agency agreement ensures someone is in your corner from the very first showing through closing day.
What You Get
Why Buyer Representation Matters
Without an agreement, an agent legally cannot show you homes or negotiate on your behalf. With one, you get all of this — with compensation that's transparent, negotiable, and typically structured into the purchase price.
Fiduciary Duty
Your agent is legally required to act in your best interest — not the seller's, not the brokerage's. This includes honesty, loyalty, confidentiality, and full disclosure of anything that affects your decision.
Expert Negotiation
Your agent negotiates price, repairs, closing costs, and contingencies on your behalf — with the full picture of comparable sales, market conditions, and the seller's motivations.
Local Market Knowledge
We know Rhode Island's neighborhoods block by block — price trends, school districts, flood zones, planned developments, and which streets to avoid. This context is invaluable when you're making a six-figure decision.
Paperwork Handled
Purchase and sale agreements, addenda, contingency removals, disclosures — your agent prepares, explains, and manages every document, and coordinates with attorneys, lenders, and inspectors on your behalf.
Your Advocate at Every Stage
From the first showing through the final walkthrough, your agent is in your corner — managing inspection negotiations, navigating appraisal gaps, and making sure nothing falls through the cracks on the way to closing.
No Conflicts of Interest
The listing agent works for the seller. Without your own representation, no one is obligated to tell you the home has been sitting for 90 days, that three offers already fell through, or that a new road is planned nearby.
The Part Everyone Asks About
How Does Compensation Work?
This is the question we hear most often, and the answer is simpler than you might expect: your buyer's agent commission can typically be negotiated into the purchase price of the home, which means it gets financed as part of your mortgage — not paid separately out of your pocket at closing.
Here's how the most common scenario works: you and your agent agree on a commission rate upfront and document it in the buyer agency agreement. When you make an offer on a home, the commission can be structured as a seller concession — essentially, you offer slightly more for the home, and the seller uses a portion of that to cover your agent's fee. Net result: it comes out of the transaction, financed over the life of your mortgage.
Sellers can also choose to offer buyer's agent compensation directly — many still do, because it increases their buyer pool. This is negotiated openly in every transaction.
Commission Agreed Upfront
You and your agent agree on a rate before you start looking. It's documented in your agreement — no surprises.
Negotiated Into the Offer
When you make an offer, the commission can be structured as part of the purchase price — financed with your mortgage.
Closed at Settlement
Your agent is paid at closing from the transaction proceeds. You don't write a separate check.
Common Questions
Buyer Representation FAQ
Do I have to pay my agent out of pocket?
Can the seller pay my agent's commission?
What if I find a home on my own — do I still need an agent?
Is the commission negotiable?
What changed after the NAR settlement in 2024?
What happens if I decide not to buy?
Ready to Get Started?
Find Your Home with Expert Representation
A free 30-minute buyer consultation answers every question you have about the process, what you can afford, and what we find for you — no commitment, no pressure.