xxBuyer Broker Agreements more information
*Please note that this website is in start-up mode and is aimed primarily at Arizona real estate. We intend to expand to other states progressively.
A class action lawsuit that was filed and won against the National Association of Realtors changed things.
Understanding Buyer Agent Commissions
Before an agent can show properties, buyers must sign a buyer-broker agreement. This agreement outlines the commissions and fees the buyer’s agent will charge. Recent changes in industry practices now require commissions to be negotiated separately rather than offered through MLS services. As a result, buyers and their agents must confirm commission terms with the seller before viewing properties.
If the seller doesn’t cover the buyer agent’s commission, the buyer may be responsible for paying it, depending on the terms of the buyer-broker agreement. Before previewing homes with an agent, ensure you fully understand the agreement you’re signing and the financial obligations involved. Many agents typically charge a 2% to 3% commission on the sales price.
Understanding Buyer/Agent Broker Agreements
Need to Know
As of August 17, 2024, many real estate professionals nationwide will be asking buyers to enter into a written agreement prior to touring a home. Here’s what you should know:
No. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.
No. In this case, since the agent is only there at the direction of the listing broker or seller, the agent is not required to have a written agreement with the buyers touring the home.
After you begin "working with" an agent and at any point before you tour your first house together.
A buyer is "working with" an agent as soon as the agent begins to provide services, such as identifying potential properties and arranging tours. Agents who are simply marketing their services or speaking to a buyer—at an open house or by providing a buyer access to a house they have listed—are not considered to be working with the Buyer.
Under the terms of the settlement, a "tour" is when a buyer who is working with an agent enters a home that is for sale or directs their agent to enter the home on their behalf. This includes when the Buyer's agent provides a live, virtual tour to a buyer not physically present.
Clarity and transparency. Written buyer agreements lay out the services your real estate professional will provide and what they will be paid. Buyers should not sign anything that includes terms they do not agree with or do not understand. You are in the driver's seat with these agreements, which are fully negotiable.
NAR has created a dedicated resource on written buyer agreements here.
Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home. Please visit facts.realtor for more information and resources.
Two Different Buyer Broker Forms
The AAR (Arizona Association of Realtors) currently provides two different but similar Buyer Broker forms. The first (recommended) is more specific, the second is more general. Forms dated August 2024.
- Buyer-Broker Exclusive Employment Agreement: This comprehensive agreement outlines the terms of the exclusive relationship between the buyer and broker, detailing services, compensation, and the duration of the agreements (click blue links to see actual copies of AAR forms). Arizona Association of REALTORS®
- Buyer-Broker Agreement to Show Property: This is a more limited agreement, focusing specifically on showing properties to the buyer. Arizona Association of REALTORS®
The Buyer-Broker Exclusive Employment Agreement is a more inclusive option, providing room to include additional terms and conditions tailored to your specific needs.
We recommend using the first form as it allows you to clearly outline expectations and responsibilities in your agreement with your agent. For guidance, we offer a list of suggested terms on our Buyer Broker page to help you customize the agreement effectively.
It is highly recommended to use phrases similar to the ones suggested on our Buyer Broker page, to assure legal rebates for negotiated commissions.