When You Need a Written Buyer’s Agency Agreement

Things consumers should know after 8/17/24.: 

1. If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.
2. Written agreements are required for both in-person and live virtual home tours.
3. You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
4. Agent compensation for home buyers and sellers continues to be fully negotiable.
5. When finding an agent to work with, ask questions about their services, compensation, and these written agreements.

Can a Buyer still see homes without signing anything?

So, for a REALTOR® to tour a home with a buyer, they need a signed agreement with an agent prior to an in person or video viewing (FaceTime, Skype, Zoom, etc.) of a property. You do not need a written agreement if the buyer contacts the LISTING Agent directly, who works for the seller and not for you the buyer.

If a REALTOR® offers to show you a home WITHOUT a written agreement, and they are not representing the seller, they could be in violation of the rules.

What types of compensation will a Buyer owe their REALTOR®?

Compensation is ALWAYS negotiable. Some agreements will be written for compensation to be a percentage (X%) of final sales price paid at closing. Other agreements will be for a set dollar amount ($X) to be paid at the time of closing.

Alternative agreements could be “A La Carte” charging for each service they provide. Examples would be ($X) to show a home, ($X) to write a contract, ($X) to go to inspections, ($X) to write up a resolution, ($X) to go to closing, etc. Some agents will require those charges be paid in advance of or at the time the service is being provided.

Can you ask the Seller’s to pay the compensation a Buyer owes their REALTOR® ?

The short answer is yes. Compensation is ALWAYS negotiable. Contracts to purchase can be written asking the seller to pay part or all of a buyer’s compensation owed to their agent. Make sure you talk to your REALTOR® about what you owe and how that can be written into an offer with the seller.

Be sure to confirm what compensation you will owe when the offer is written, before you sign it. Confirm again, what compensation you owe to your agent when an agreement is reached on a contract, before you sign it. You don’t want any surprises when you get to the closing table.

Keep in mind, REALTOR® are providing a service to help a buyer with what could be the largest financial decision they make in their life. Make sure you choose an agent that will provide you with the best services that meet your needs.