Tenant Rep/ Buyer
Agency Agreement

Tenant Representation/Buyer Agency

Tenant Representation and Buyer Agency are interchangeable terms that refer to an arrangement in which a real estate agent works on behalf of the tenant or buyer to find a property to lease or buy. Wisconsin law states that without any other agreement, real estate agents work for the landlord or owner. The only way to change this relationship is by using a state-approved form called a Tenant Representation Agreement (or Buyer Agency Agreement). With this form a tenant or buyer establishes that a real estate agent is working on his or her behalf, not for the landlord or owner.

While any real estate agent can show you properties, without a tenant representative relationship the agent cannot offer advice, do comparative analysis, make recommendations, or negotiate on your behalf since his or her obligation is to the landlord or owner.

By using a tenant representative you are assuring that you have someone on your side with the same type of knowledge about the real estate market, terms, and language that the landlord or owner has on his or her side.

In most circumstances there is no cost to the tenant or buyer. The fee that the landlord has already agreed to pay to the listing agent is simply split with the tenant representative. This means that the services are provided to the tenant or buyer at no additional expense. There are a couple of instances in which the landlord might not pay a fee, or the fee may be added to the rent rate or purchase price. In those situations the tenant or buyer may choose to pay the agent directly.

To learn more about the advantages Tenant Representation can provide, click here to read Annette's article* from In Business magazine, April 1998.

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