As the real estate industry continues to navigate multiple lawsuits regarding the requirement of sellers (through the Listing Brokerage) to offer compensation to a buyer’s brokerage, it is more important than ever to talk to your Broker about the Exclusive Buyer Representation Agreements.
This is Part I of a three-part series highlighting this Agreement.
Part I – Consumer Transparency
Anything Agents and Brokerages can do to clearly spell out terms of compensation will increase transparency with customers. An Exclusive Buyer Representation Agreement is a tool to explain how compensation is earned and outline the possible sources of compensation (e.g. cooperating broker via MLS).
The Agreement also clarifies both the broker’s obligations and a buyer’s obligations to be very clear on what is to be expected during the homebuying process.
Having your prospective buyer(s) sign an Exclusive Buyer Representation Agreement gives your client the assurance that if the Seller, either directly or through the Listing Broker, pays the agreed upon compensation, your client is not required to pay you any additional amount.