08/17/2024
🛑𝐀𝐓𝐓𝐄𝐍𝐓𝐈𝐎𝐍 𝐏𝐎𝐓𝐄𝐍𝐓𝐈𝐀𝐋 𝐇𝐎𝐌𝐄 𝐁𝐔𝐘𝐄𝐑𝐒 🛑
‼️ 𝐄𝐅𝐅𝐄𝐂𝐓𝐈𝐕𝐄 TODAY ‼️
All buyers looking to purchase any residential property moving forward this Saturday MUST sign a “Buyer Representation Agreement” before walking into a property.
🏡 𝐂𝐀𝐍’𝐓 𝐘𝐎𝐔 𝐉𝐔𝐒𝐓 𝐒𝐇𝐎𝐖 𝐌𝐄 𝐓𝐇𝐄 𝐇𝐎𝐔𝐒𝐄?
Starting August 17th, no REALTOR will be able to unlock a door without you first signing the agreement. This is non-negotiable and is part of a legally binding settlement for all REALTORS.
📃 𝐖𝐚𝐢𝐭…𝐖𝐇𝐀𝐓 𝐃𝐎 𝐈 𝐇𝐀𝐕𝐄 𝐓𝐎 𝐒𝐈𝐆𝐍?
The Buyer Representation Agreement is a contract between you, as the Buyer, and your REALTOR. It outlines the details of your relationship, roles and responsibilities, and the REALTOR’s compensation. The compensation/commission stated is the MAXIMUM amount your broker/agent can receive from the transaction.
💵 𝐒𝐎, 𝐁𝐔𝐘𝐄𝐑𝐒 𝐍𝐎𝐖 𝐇𝐀𝐕𝐄 𝐓𝐎 𝐏𝐀𝐘 𝐂𝐎𝐌𝐌𝐈𝐒𝐒𝐈𝐎𝐍?
Well, yes…but actually, maybe no…
The agreement states that the Buyer is responsible for commissions; however, there are situations where others, including the Seller or the Listing Broker, may cover this cost. Reach out to your agent if you have questions about your specific scenario.
📜 𝐇𝐎𝐖 𝐃𝐈𝐃 𝐖𝐄 𝐆𝐄𝐓 𝐇𝐄𝐑𝐄?
Historically, Sellers paid the Listing Broker a commission, which was then shared with the Buyer’s Broker. However, this led to a misunderstanding that “The Seller pays the Buyer’s Agent,” which isn’t entirely accurate. This misconception resulted in a class-action lawsuit, driving these changes. With the new NAR settlement, Agents/Brokers cannot advertise ANY compensation via the MLS, meaning Buyer’s Agents aren’t guaranteed compensation like before.
🤔 𝐖𝐇𝐀𝐓 𝐈𝐅 𝐈 𝐃𝐎𝐍’𝐓 𝐋𝐈𝐊𝐄 𝐌𝐘 𝐀𝐆𝐄𝐍𝐓? 𝐂𝐀𝐍 𝐈 𝐆𝐄𝐓 𝐎𝐔𝐓 𝐎𝐅 𝐓𝐇𝐈𝐒 𝐀𝐆𝐑𝐄𝐄𝐌𝐄𝐍𝐓?
The agreement will outline the termination process, so it’s crucial to interview and hire your Buyer Representation carefully.
📝 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬:
1️⃣ The length of the agreement is determined by you and your agent—it can be as short or as long as you both agree.
2️⃣ Keep in mind that specifics can vary from state to state, so be sure to clarify the terms before signing.
🤝 𝐀𝐋𝐈𝐆𝐍𝐌𝐄𝐍𝐓 & 𝐂𝐎𝐌𝐌𝐔𝐍𝐈𝐂𝐀𝐓𝐈𝐎𝐍👍Choosing a professional REALTOR is more critical than ever to successfully closing on your next property purchase. Lots
of changes are happening behind the scenes. This new rule with the Buyer Representation Agreement is just one aspect of the NAR settlement, which is rapidly changing the real estate industry nationwide. Be sure to talk to any potential agent about their knowledge of the new rules and process.
[credit Jamie Proctor]
