A brokerage agreement can also be called a “Finder`s Fee Agreement” or a “Referral Agreement”. It is a legal document that defines the conditions under which a real estate agent provides goods and services to a buyer. The broker represents the buyer when purchasing goods or services from a seller. Before pursuing a sales contract for a home, a home buyer will usually sign a brokerage contract with a real estate agent. The agreement precisely defines who works on behalf of the buyer. This document is advantageous if the buyer or real estate agent wants an obligation of the other party. A real estate agent will not want to devote his time and energy to a buyer who could turn around and hire another broker if he agrees to buy a house. And a buyer wants to know that the real estate agent has the time and motivation to help them find the right home. Is it a good idea to sign a brokerage contract? And you should sign an agreement with the first broker you entered into? As a buyer, you need to sign a lot of paperwork and documents before you can buy a home….