The following information is valuable to all clients and associates. The National Association of Realtors will implement the new buyer-representation and buyer agreements (BRBC) August, 2024. The following information is a Q & A to help you understand how the new law works.

Q: Will an agreement between Buyer Agent and Buyer’s have to be signed?

A: Yes! Buyer will need to sign a contract with agents they are working with to make sure it complies with the “NEW” Buyer Agreement Representation settlement agreement.

Q: How is the new Buyer to Agent compensation system structured? (flat fee, hourly, percentage) 

A: Many new forms of compensation could evolve in addition to the traditional practice of basing commissions on a home’s sale price, other types of compensation could include flat fee payments or an a la carte menu covering services such as home tours purchase offers, negotiations and more.

Q: Does the settlement mean the standard 6% commission rate is gone?

A: The 107 – page settlement agreement does not specify any commission rates.

Q: Do I have to sign an agreement to attend an open house or tour a new development modeled homes? 

A: Buyers who want to be represented by a Realtor will sign an agreement which indicates they are walking into an open house with serious intention to buy and therefore establishing a professional relationship. Buyers have a choice, they can either sign a buyer representation agreement for that one particular property with the person who happens to be hosting that open house or the buyer also has the option to sign a piece of paper that says, I’m unrepresented, I’m just looking at the house. 

Q: Do I need to sign paperwork before I contact the Seller agent for a home listed in the MLS?

A:The listing agent is working for the seller in these instances and no agreement is required but unrepresented buyers should expect to sign something when showing up at an Open House. CAR has created an Open House and Non-Agency form for the agents to use as “a risk management tool” The form “makes it clear that the listing agent is solely working for the seller and all communications are for the seller’s benefit,” according to CAR legal team.

Q: Is there an open source buyer’s representation agreement?

A: CAR recently released an updated version of its buyer’s representation agreement to its members. Other Brokerages are drafting their own versions.

As the new Buyer-Representation and Buyer Agreements (BRBC) take effect in August 2024, it’s crucial for both buyers and agents to stay informed and prepared. These changes will reshape how real estate transactions are conducted, emphasizing the importance of clear agreements and transparent compensation structures.

At Elite Life Realty, Inc., we are committed to guiding you through these updates with ease and confidence. If you have any questions or need assistance navigating the new Buyer-Representation and Buyer Agreements, don’t hesitate to reach out to us. Contact Elite Life Realty, Inc. today to schedule a consultation and ensure you’re fully prepared for these changes. Let us help you make informed decisions with confidence.

INFORMATION LISTED ABOVE IS SUBJECT TO CHANGE

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