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 commissions are entirely negotiable and not set by law. Things to know as a home buyer or seller: • If you are a buyer and your agent is using an MLS, you must sign a written agreement with your agent before touring a home so you understand precisely what services will be provided and for how much. • Written agreements are required for both in-person and live virtual home tours. • You do not need a written agreement if you speak to an
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