The Virginia Buyer Brokerage Agreement Explained: Fees, Term and Your Agent's Duties

The Short Answer

A buyer brokerage agreement is a written, exclusive agreement between you and a brokerage firm. It makes the firm your "standard agent" under Virginia law, sets how long the agreement lasts, and spells out how the firm is paid. The fee is negotiable, can be a percentage or a flat amount, and can be offset by seller concessions you choose to apply to it. It's usually the first document a buyer signs.

This guide is part of my series on the documents you'll sign buying or selling a home in Virginia, which walks through the main forms in the order they show up. It's the buyer-side counterpart to the seller's listing agreement, and you'll usually receive the Consumer Disclosure Information Form around the same time. After it come the disclosures and, once you find a home, the purchase agreement.

The Term

The agreement runs until a stated end date or until closing. Pick a term that fits your search. If you're PCSing and buying remotely, I usually suggest aligning it with your report date.

How the Fee Works

Negotiable. The fee is set in the agreement, as a percentage of the price or a flat sum.

Payable even without help on a specific home. Because the agreement is exclusive, the fee can be owed if you buy during the term, even if the firm didn't help on that particular house.

Optional retainer. A retainer may or may not be used, can be refundable or not, and may or may not be credited toward the fee.

Financing, including VA. The agreement asks whether you intend to use a VA loan. Many Hampton Roads buyers are military, and VA rules limit which fees a veteran can pay, so it's flagged up front. See my guide to VA loans in Hampton Roads.

Seller concessions. If you choose to apply seller concessions to the fee, they're credited toward it, and you pay any shortfall. Some sellers won't offer concessions, which the agreement acknowledges.

No hidden pay. The firm can't take compensation beyond the agreed fee without conspicuous written disclosure to you.

For how concessions interact with loan limits, see my guide to seller concessions and lender credits.

The Tail Period

A tail (protection) period can apply after the agreement ends for homes the firm showed you. It doesn't apply if you later sign a buyer brokerage agreement with another firm.

Your Agent's Duties

Your agent owes you loyalty, confidentiality, reasonable care, an accounting for any money handled, and disclosure of material facts, while still treating sellers honestly. In return, you agree to work exclusively with the firm, be reasonably available, and tell other agents and sellers that you're represented.

Dual Agency Choices

You choose whether to consent to dual agency, where the firm represents both you and the seller, with or without designated agents, or to decline it. The agreement explains what happens in each case, for example if you want to see a home my brokerage has listed.

Wire Fraud

The agreement includes a wire fraud alert. Scammers target closings with fake wiring instructions. Always verify by phone using a number you already know before sending money.

Frequently Asked Questions

Do I have to sign one before touring homes? Many brokerages require a written agreement before working with a buyer. Ask your agent how they handle it.

Can the fee be negotiated? Yes.

What if I'm not happy with my agent? Talk to the agent and their managing broker about how the agreement can end.

Next Steps

I explain every line of my buyer brokerage agreement before you sign. See how I work as a buyer's agent or reach out to me.

This article is general information about how these documents commonly work in Virginia, not legal advice. Forms are updated from time to time and every transaction is different, so read the version you're actually given and talk with a Virginia real estate attorney about legal questions.