and buyer tour a home. It’s important to remember that buyer brokers cannot accept compensation from any source that is more than the amount agreed to between the buyer broker and buyer. Seller Concessions Seller concessions can help the buyer cover certain transaction costs, including fees for buyer broker services. Other uses may include loan origination costs or property repairs. Seller concessions can still be communicated on an MLS. However, such concessions cannot be conditioned upon or tied to payment to a buyer broker. What Is A Buyer Agency Agreement? A buyer agency agreement, sometimes called a buyer representation agreement or a buyer-broker agreement, is a contract between a home buyer and a real estate agent outlining the terms and conditions of their working partnership. The agent could also be a REALTOR® (a real estate professional member of the National Association of REALTORS®) or a broker. How Does A Buyer Agency Agreement Work? Upon signing the contract, the home buyer agrees to work with the real estate agent until they purchase a property the agent proposes or the contract expires. If a real estate transaction occurs, the agent receives a commission based on the home sale price. The buyer, seller, or both pay the commission at closing. A buyer agency agreement provides some transparency for the buyer and the agent, so both parties know exactly what to expect from the other throughout their partnership. Source National Association of REALTORS® (NAR) 8/24
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