The Florida buyer-broker agreement will become law in 60-plus days. Actually, the buyer-broker agreement will be law throughout the United States!
Regular readers know I’ve been sharing updates on how the National Association of Realtors (NAR) legal settlement will play out starting this July (date not confirmed).
Working with a buyer, it’ll no longer be as if we are “dating.” When it’s official, we’ll become “engaged” in a legal relationship. In other words, there will be full transparency of what the buyer-agent will do for their buyer, and what the buyer is expected to do, while under contract. That’s right, it’s a signed agreement.
Think of it this way: today a real estate agent allocates a lot of energy and time selling home sellers to list with them. It’s a full-blown presentation. In it, the negotiate the compensation to sell their home. Then they sign an agreement to get started.
At first, this may make you nervous. To ease your mind, there are currently 18 states where this has been law for years. In these states, the buyer-broker agreement (representation) is a normal way of buying real estate. And this July, it’ll be customary across the U.S.
Knowing this, here are a few things study’s show about the relationship between the buyer’s agent and the buyer today and why having a buyer-broker agreement will be important:
* An agent’s job is no longer about finding a property for the buyer. In today’s world, buyers do that via dozens of Apps, on their own time, then share with the agent
* Home Search tools on realtor websites are almost antiquated – no true value
* An agents job begins after showing a buyer multiple properties and the buyer chooses the one they want to buy
* A buyer wants their agent to ensure everything goes well during this huge event in their life
* An agents job is to mitigate, or alleviate, risks for their buyer throughout the transaction
Here are some buyer-broker agreement items to consider when this law goes into effect:
* Written agreements will be required before a buyer tours properties listed for sale in the MLS
* Through transparency and clear expectations, the buyer-broker agreement fosters trust and understanding for the consumer
* A buyer’s agent will use professional knowledge and skills to assist a buyer in negotiating for, and completing, the purchase of such property… and for what compensation
* A buyer’s agent will assist the buyer throughout the transaction and represent their buyer’s best interests
* The buyer will provide accurate and relevant personal information to buyer’s agent regarding buyer’s financial ability to purchase real estate
This is just a sample. I’ll share more soon.
Right now all across Florida, professional realtors are working with their brokers and legal representatives to formalize a buyer-broker agreement. There won’t be one standard buyer-broker agreement to use, like the standard As-Is Residential Contract for Sale and Purchase provided by The Florida Association of Realtors and the Florida Bar.
Each agent and broker will provide their own. They will be nuanced, but make no mistake – every realtor will present their buyer-broker agreement to their buyer before they begin working together. There will be no way out… unless a buyer decides to “go-it-alone.”
Of course home buyers will have choices. One is to represent themselves. One is to work with the listing agent. Both of these lack representation as we know it.
But if you choose to have representation, be prepared for your agent to present the buyer-broker agreement to you starting this July.
(Main photo: Delray Beach lifeguard #2. Red & purple flags on last Sunday’s windy, heavy-current day)
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