New Realtor Contract Rules: What Buyers Need to Know

On or around August 17th, 2024, the realtor network denied wrongdoing but agreed to pay $418 Million. Now the Realtor bosses have demanded that all realtors must get a contract signed with the buyer before showing the buyer homes. If realtors don’t comply, they risk being excised from the realtor union type group. Non realtors are not required to use this form.

Now, if a buyer request a showing from a realtor, the buyer will be presented with a form which must be signed. This form discloses a few different details.

1. The buyers agent is expecting to get paid a percentage such as 3% of sale price upon a satisfactory closing. The buyer must agree to pay if the seller does not agree pay. The buyer agent can choose to reduce this percentage in the future.
2. The buyer can pick which type of homes to see based on seller offerings. In some cases the seller is not agreeing to pay the buyer agents commission. If the buyer chooses to see homes where the seller is offering nothing, then the buyer is responsible for payment. If the seller is offering some type of rebate which is lower than 3%, the buyers agent can take the lower amount and give the buyer a break. Sellers who offer no buyer agent commission will get less showings because most buyers don’t want to be directly responsible to come up with cash.
3. The buyer and agent will choose the term, locations, and even specific addresses where the buyer agency form will or will not apply. Buyers can sign agency forms with more than one realtor at a time as long as non of the forms cover all areas and all homes. It would be a mistake for a buyer to sign with two realtors on a form which covers the same address. The buyer might end up responsible to pay two commissions.

At Prime Time Real Estate, Sarasota Florida, we recommend that all forms include the right to cancel this buyer broker form easily. However, once the home is found and the purchase contract is signed, other parties are involved and cancellation can become an option only at default.

This information is deemed accurate but is not guaranteed.