Buyer agency agreements are required now. If you are a homebuyer working with an agent who is a Realtor, it means you will be working with a professional who is ethically obligated to act in your best interest. As of August 17, 2024, you will be asked to sign a written buyer agency agreement. This after you have chosen the professional you want to work with. Here is what you should know about these agreements.
What is a “written buyer agency agreement? What does it do?
Written buyer agency agreements is an agreement between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for their services.
Why am I being asked to sign an agreement?
Written buyer agency agreements have become a nationwide requirement for many real estate professionals as part of the National Association of Realtors proposed settlement of litigation related to broker commissions. The requirement is effective as of August 17, 2024. So, unfortunately an additional step will be placed into the responsibility of Realtors, as the Buyer Agency agreements are required.
NOTE: Read the NAR (National Association of Realtors) in-depth explanation, Written Buyer Agreements 101
Are These Agreements New?
In some places, yes. Many states (like North Carolina) have required them for years, while some (like New Jersey) have not. As a result, it is entirely possible you or others you know have not used them in the recent past. Regardless, they are now 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 the compensation. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., a flat fee, a percentage or an hourly rate). The fee should not be a range. Only sign an agreement tat reflects what you have agreed to with your real estate professional.
How Do I Benefit From These Agreements?
These agreements clearly lay out what services you (as a homebuyer) expect your real estate professional to provide, and what your real estate professional will be paid. These agreements make things clear. They will aslo reduce any potential confusion at the outset of your relationship with your real estate professional.
When Do I Need To Sign An Agreement?
You will be asked to enter into a written buyer agency agreement with your real estate professional before touring a home with them, either in-person or virtually. If you are simply asking a real estate professional about their services, you do not need to sign a written buyer agreement. If visiting an Open House you will be asked if you are being represented or will have to sign an agency agreement just for that house visit.
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 by your agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.
Do Agreements Dictate a Specific Type Relationship I Need To Have With My Real Estate Professional?
No. Accordingly, you are allowed to enter into any type of business relationship with your real estate professional allowed by state law.
Can I Change or Exit an Agreement?
Yes. You and your real estate professional will mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited. Read the text of the agreement and speak with your real estate professional if you would like to change your agreement.
To learn how Real Estate Experts works with buyers, look at our other Blog posts. And, please feel free free to Contact Me to discuss!
