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WHY AM I BEING ASKED TO SIGN A WRITTEN BUYER AGREEMENT ?
If you are a homebuyer working with an agent who is a
REALTOR®, that means you are working with a professional who is ethically
bound to work in your best interest. Beginning August 17, 2024, after
you have chosen the professional you wish to work with, you will be required to sign a
written buyer’s agreement.
Here’s what you need to know about these agreements:
What is a “written buyer’s agreement”? What does it do? A
written buyer’s agreement is an agreement between you and your real estate professional that
outlines the services your real estate professional will provide to you, and what you will be paid
for those services.
Why am I being asked to sign an agreement?
Written buyer agreements
became a nationwide requirement for many real estate professionals as part of the National Association of REALTORS®’s
proposed resolution of broker commission disputes . The requirement went into effect on August 17, 2024.
Are these agreements new? In some places, yes.
Many states have required them
for years, while others have not. As a result, it is entirely possible that you
or others you know have not used them in the recent past. Today,
they are a nationwide requirement for many real estate professionals.
Are these agreements negotiable? Yes!
You should feel empowered to negotiate
any aspect of the agreement with your real estate professional, such as the services you
want to receive, the length of the agreement, and compensation, if applicable.
Compensation between you and your real estate professional is negotiable and is not
set by law. In the written agreement, compensation should be clearly
defined (e.g., $0, flat fee X, X percentage, X hourly rate), and not open-ended or
in a range. Only sign an agreement that reflects what you and your real estate professional have agreed to
.
How do I benefit from these agreements? These agreements clearly state what
services you (as a home buyer) expect to receive from your
real estate professional and how much you will be paid for them. These agreements clarify
the terms and minimize any potential confusion at the beginning of your
relationship with your real estate professional.
When should I sign an agreement?
You will be required to sign a
written buyer’s agreement with your real estate professional before you visit a home with them, either in
person or virtually. If you simply attend an open house on your own
or ask a real estate professional about their services, you do not need to sign
a written buyer’s agreement.
REALTORS® are members of the National Association of REALTORS®
Does this mean I have to pay my real estate professional out of pocket?
Not necessarily. While you are responsible for paying your
real estate professional as outlined in your agreement, you do have the ability to request,
negotiate, and receive compensation for your real estate professional from
the seller or their agent.
Do the agreements dictate a specific type of relationship I must have with my
real estate professional? No, you may enter into any type of
business relationship with your real estate professional that is permitted by the law of the state where you live.
Can I change or terminate a contract? Yes. You and your real estate professional
can mutually agree to change your contract. Contracts may have
specific conditions under which they can be terminated, so read the
contract language and talk to your real estate professional if you want to change or terminate your
contract.
Practices may vary based on state and local law.
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