What does a buyer's agency agreement typically inform the buyer about commissions?

A buyer's agency agreement typically informs the buyer about the broker's ability to represent both the buyer and the seller, particularly in situations where dual agency may be allowed. This situation occurs when the same broker represents both parties in a transaction, meaning the broker has a responsibility to ensure fairness and transparency to both the buyer and the seller simultaneously.

In a dual agency scenario, the broker must disclose their role to both parties and obtain consent from both the buyer and the seller, ensuring that all parties are aware of the potential conflicts of interest that may arise. This is an important concept in California real estate as it affects the commission structure and the loyalty that the broker owes to each party.

While buyers often assume their agent exclusively represents them, understanding the possibility of dual agency is crucial when navigating real estate transactions. It helps buyers make informed decisions about their representation and any associated commissions based on how their agent operates within these relationships.