What agreement is needed to establish a legal relationship between a buyer and a real estate agent in Georgia?

In Georgia, to establish a legal relationship between a buyer and a real estate agent, a buyer agency agreement is essential. This agreement formally defines the relationship, outlining the responsibilities and duties of the agent to the buyer. It ensures that the agent represents the buyer's interests throughout the real estate transaction, establishing a fiduciary duty that includes loyalty, full disclosure, and the obligation to negotiate on behalf of the buyer.

The buyer agency agreement also serves to clarify compensation arrangements, typically detailing how the agent will be paid, whether through a commission from the seller or directly from the buyer. This clarity helps avoid potential conflicts and misunderstandings later in the process.

While exclusive listing agreements and service agreements can be important in other contexts—like when a seller is working with an agent to sell a property—a buyer agency agreement specifically creates the legal framework necessary for buyers to work with agents in Georgia. A sales agreement, on the other hand, pertains to the actual purchase of the property and is executed after the buyer and seller have agreed on terms, further distinguishing it from the relationship-established agreement.