They were either paid directly by the seller, or the transaction was set up so that the seller provides a “credit” to the buyer for how much the real estate commission is, and then the buyer pays the commission. However, evolving regulations mean buyers may pay their agents directly, and the traditional practice of commission splits may evolve alongside other compensation structures. The commission the buyer agent would receive is now 100% negotiable with the buyer broker. The intricacies of changing regulations are just one of the many reasons buyers can benefit from having an agent dedicated to their interests alone.
BUYER BROKER AGREEMENT GREEMENT WHAT YOU SHOULD KNOW
Real estate agents who use and list properties for sale on a Multiple Listing Service (MLS)—a local marketplace used by real estate professionals (both buyer brokers and listing brokers) to share information about inventory in a particular area—will be required to enter into written agreements with buyers before touring a home. Those written agreements must include: • A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined. • Objective compensation (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”). • A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer and • A conspicuous statement that broker fees and
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