As of August 17, 2024, buyers must sign a written agreement with their buyer’s agent before touring homes.
This is a significant distinction resulting from the NAR (National Association of Realtors) settlement agreement. Real estate agents who use and list properties on a Multiple Listing Service must have written agreements with buyers before touring a listing.
The written buyer broker agreement 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.
- Compensation that is objective (such as $0, a flat fee, a percentage, or hourly rate) and not open-ended.
- A term that prohibits the agent from receiving compensation exceeding the amount agreed to in the agreement with the buyer.
- A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
Important exceptions: If a realtor is merely holding an open house or granting an unrepresented buyer access to a listed house, a buyer brokerage agreement is not needed. The requirement applies specifically when an agent is providing brokerage services to a buyer, which includes identifying properties, arranging tours, facilitating negotiations, or presenting offers.