08/17/2024
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All buyers looking to purchase any residential property moving forward this Saturday MUST sign a βBuyer Representation Agreementβ before walking into a property.
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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.
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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 REALTORβs compensation. The compensation/commission stated is the MAXIMUM amount your broker/agent can receive from the transaction.
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Well, yesβ¦but actually, maybe noβ¦
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.
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Historically, Sellers paid the Listing Broker a commission, which was then shared with the Buyerβs Broker. However, this led to a misunderstanding that βThe Seller pays the Buyerβs Agent,β which isnβt 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 Buyerβs Agents arenβt guaranteed compensation like before.
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The agreement will outline the termination process, so itβs crucial to interview and hire your Buyer Representation carefully.
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1οΈβ£ The length of the agreement is determined by you and your agentβit can be as short or as long as you both agree.
2οΈβ£ Keep in mind that specifics can vary from state to state, so be sure to clarify the terms before signing.
π€ πππππππππ & ππππππππππππππChoosing 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]
