Working with a buyer's agent

What is a buyer’s agent?

Buyers’ agents are agents who work on behalf of a buyer and are paid by the buyer. A buyer’s agent must be a licensed real estate agent and must have an agency agreement with their client, the buyer. The fee or commission paid by the buyer may be a percentage of the purchase price or a fixed fee.

A buyer’s agent can’t negotiate the purchase of a property that is listed by their agency. Rule 9.14 says that a licensee must not act in a capacity that would attract more than one commission in the same transaction.

You can read more about buyer’s agents here.

Buyer’s agents and conjunctional arrangements

A buyer’s agent cannot negotiate a conjunctional sale arrangement.

In a conjunctional sale, the listing agent and the agent who has introduced a buyer are both acting for the vendor, and they negotiate to share the commission paid by the vendor. In a conjunctional arrangement, the agent who has introduced the buyer to the listing agent may be working with the buyer, but they are not working for the buyer because there is no agency agreement in place with the buyer.

When a prospective buyer is represented by a buyer’s agent

If you are the listing agent and a buyer’s agent approaches you about the property, we recommend that you let your vendor client know that the prospective buyer has a buyer’s agent.

Compared to other real estate markets globally, the buyer’s agent market is underdeveloped in New Zealand. Our goal is to see empowered consumers working with trusted real estate professionals. Buyers who have an agent are likely to be more empowered and better educated and informed in the real estate transaction process.