If you desire representation in your real estate purchase, then you need to sign a buyer’s representatioin contract. Until you sign such a contract you will not receive any of the representation as presented in the Agency Relationships disclosure form except as noted.
Why signing a contract with your chosen Realtor is a good idea? Whether you are a buyer or seller you will want someone working in your best interests vs. the other party’s. Although the Realtor you are working with may be a great guy or gal, if they’re obligated by law to another party because you are not under contract with them then your best interests are not being looked after. Consider how consulting with the other party’s Realtor over purchase price, financing, inspections, earnest money, or just the best home might differ if you are not under contract. How will the information you discuss hurt your negotiation strength or be swayed. If you are under contract you are working with a Realtor obligated to your best interests and getting information for you instead of from you.
Minnesota law states the following in regards to The Buyer’s Broker Contract:
Subd. 2.Buyer’s broker agreements.
(a) Requirements. “Licensees shall obtain a signed buyer’s broker agreement from a buyer before performing any acts as a buyer’s representative and before a purchase agreement is signed.”