What is the main reason for a broker to use an Exclusive Buyer Brokerage Agreement?

The primary reason for a broker to use an Exclusive Buyer Brokerage Agreement is to ensure payment of commission after representation. This type of agreement creates a contractual obligation between the buyer and the broker, whereby the buyer agrees to work exclusively with the broker in their property search.

By establishing this exclusive relationship, the broker is secure in the knowledge that they will receive a commission for their services if the buyer purchases a property during the term of the agreement. It provides a layer of protection for the broker's efforts and investments made during the buyer's search process. This commitment not only incentivizes the broker to provide high-quality service but also ensures that the buyer is represented effectively throughout the home-buying process.

In contrast, other options do not accurately capture the fundamental purpose of this agreement. Binding the buyer to a purchase does not represent the main objective, as the agreement focuses on representation rather than purchase obligation. Simplifying the sales process is a beneficial outcome but not the primary motive behind the use of this agreement. Allowing buyers multiple options is contrary to the exclusive nature of the agreement, which focuses on a singular relationship between the broker and the buyer.