As of August 17, 2024, homebuyers working with a REALTOR® are required to sign a written buyer agreement before touring a home. This agreement ensures clarity and transparency between you and your agent, outlining the services your agent will provide and how they will be compensated. The written buyer agreement serves as a formal contract that protects both parties, defining the scope of the agent's responsibilities and avoiding potential misunderstandings.
What Exactly is a Written Buyer Agreement?
A written buyer agreement is a contract between you and your real estate professional that outlines the services you will receive, such as identifying potential properties, negotiating offers, and assisting with paperwork. The agreement also specifies how your agent will be compensated, whether through a flat fee, percentage of the purchase price, or another method. These terms are fully negotiable, and it’s important that you feel comfortable with the agreement before signing.
Why Are These Agreements Now Required?
The written buyer agreement requirement was introduced as part of the National Association of REALTORS® (NAR) settlement related to broker commissions. The goal is to enhance transparency and ensure both parties understand their roles in the homebuying process. In the past, some states required written agreements, but now, they are a nationwide standard, bringing uniformity to the process.
How Can You Benefit from a Written Buyer Agreement?
The primary benefit of a written buyer agreement is clarity. By clearly laying out the services your agent will provide, along with their compensation, the agreement helps prevent any potential disputes down the road. This agreement ensures that you and your agent are on the same page from the start, fostering a smoother and more transparent transaction process.
Are These Agreements Flexible?
Absolutely. You can negotiate the terms of the agreement, including the services provided and the compensation structure. Additionally, the agreement can be changed or even exited if both parties agree. If you have any concerns or questions about the agreement, it’s important to address them early on to ensure you are comfortable moving forward.
If you’re ready to start the homebuying process or need guidance on written buyer agreements, contact me through www.labradarealty.com, email albert@labradarealty.com, or call 786-290-3594.