Back HomeNAR August 17th Deadline. What Florida Buyers Need to Know.
As required by the recent National Association of Realtors Settlement Agreement, starting August 17th, 2024, all real estate brokers providing brokerage services to a buyer will be required to have the buyer execute an Exclusive Buyer Brokerage Agreement before touring any homes.
Buyers should know that after Aug. 17:
· If you are a buyer and your agent is using an MLS, you will need to sign a written agreement with your agent before touring a home so you understand exactly 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 are just speaking to an agent at an open house or asking them about their services.
· Agent compensation for home buyers and sellers continues to be fully negotiable.
An Exclusive Buyer Brokerage Agreement is a contract between a real estate broker and a potential homebuyer. Florida has 4 different variations of the Agreement. The Agreements differ by the type of representation provided by the Broker, including single agent, transaction broker, single agent with consent to transition to transaction broker, and no brokerage relationship. Under each Agreement, the buyer commits to working exclusively with the Broker in their search for a property in exchange for a commission paid by the buyer to the Broker, with certain caveats. In return, the Broker agrees to represent the buyer’s interests, providing professional advice, market insights, and negotiation skills to secure a contract for the buyer.
Florida’s Exclusive Buyer Agreements:
- Exclusive Buyer Brokerage Agreement–single agency:
This agreement may be used when a broker wishes to act as a buyer’s agent and be paid commission by the buyer. It establishes an exclusive, single agency representation with a buyer and provides for a retainer fee.
- Exclusive Buyer Brokerage Agreement–transaction agency: This form may be used when a broker wishes to act as a buyer’s agent and be paid commission by the buyer. It establishes an exclusive, transaction agency representation with a buyer and provides for a retainer fee.
- Exclusive Buyer Brokerage Agreement–no brokerage relationship:
This form may be used when a broker wishes to act as a buyer’s agent and be paid commission by the buyer. It establishes an exclusive, no brokerage agency representation with a buyer and provides for a retainer fee.
- Exclusive Buyer Brokerage Agreement–transition from single agency to transaction agency: This form may be used when a broker wishes to act as a buyer’s agent and be paid commission by the buyer. It establishes an exclusive, single agency representation with a buyer and provides for a retainer fee, with a right to transition into transaction agency.
- Showing Agreement (SA-3x): This form may be used to create a buyer’s commission agreement based on a one-time showing of property.
The form of representation a buyer or seller selects will bind the entire brokerage and not just an agent/licensee working at the firm. A buyer wanting single agent representation binds the entire brokerage to a single agent relationship.
Florida does not permit dual agency so if there is a home listed by the same firm, the single agent would have to slide back, with your consent, to being a transaction broker.
Many brokerage firms do not permit single agent representation as a company policy for several reasons. The possibility of selling “in-house” properties is hampered if single agency is utilized to any extent. Less talked about and a more significant reason why larger brokerages only all transaction brokerage is the fact that higher levels of service require a higher level of knowledge by all agents in their firm. The lack of experience is a source of higher liability to the brokerage.
Kim N. Bregman