Which type of agreement is a buyer brokerage agreement?

A buyer brokerage agreement is indeed classified as an employment contract. In this type of agreement, a real estate broker is engaged to represent the interests of the buyer in the transaction. The agreement establishes a fiduciary relationship between the broker and the buyer, outlining the responsibilities and expectations of each party. This relationship is integral as it ensures that the broker is legally obligated to act in the best interests of the buyer, providing guidance and support throughout the home-buying process.

This contrasts with other types of agreements. For instance, a sale and purchase contract is focused on the specifics of the real estate transaction itself rather than the representation of parties. A listing agreement, on the other hand, is used to engage a broker to sell a property and primarily represents the seller’s interests. An option contract frequently gives one party the right to purchase a property within a specified timeframe but does not establish an employment relationship or representation like a buyer brokerage agreement does. Overall, identifying a buyer brokerage agreement as an employment contract aligns with its purpose of creating a professional working relationship aimed at protecting the client's interests in a real estate transaction.