Understanding Buyer Representation in Commercial Transactions

Q: I represent a buyer interested in purchasing an apartment complex containing 15-25 units. Do I need a Buyer Representation Agreement in place before I begin working with this buyer?

A: Most of the Oregon laws regarding Buyer Representation Agreements and most of the rules imposed by the NAR Settlement Agreement do not apply to commercial transactions or properties containing five or more dwelling units. Specifically, the Oregon law requiring a Buyer Representation Agreement does not apply to a 15-unit apartment complex. It may be in your best interest to enter into a Buyer Representation Agreement anyway, since it is great protection for both parties and sets realistic expectations.

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