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Why Use Exclusive Buyer Representation Agreements? Part 1

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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 learn the benefits of Exclusive Buyer Representation Agreements.  This is Part I of a three-part series highlighting this underutilized Agreement.

Part I – Consumer Transparency

Anything Agents and Brokerages can do to clearly spell out terms of compensation will increase transparency with consumers.  An Exclusive Buyer Representation Agreement is the perfect 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 journey.  Additionally, it guarantees compensation if a buyer contracts to acquire a property within 120 days after the Agreement expires.

Having your prospective buyer(s) sign an Exclusive Buyer Representation Agreement gives your customer the assurance that if the Seller, either directly or through the Listing Broker, pays the agreed upon compensation, your customer is not required to pay you any additional amount.

Access realMLS’s Exclusive Buyer Representation Agreement in Flexmls under Menu > Forms/Info > realMLS Buyer Representation Agreements. Look for Part II of this series soon where we will explore the “Buyer Benefits” of the Exclusive Buyer Representation Agreement.

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