As we approach the August 17th deadline for implementation of the practice changes, another batch of new forms as well as revisions to current forms have been released. If you have questions about the Buyer Broker Agreement, you can find more information in our recent blog post: Florida Realtors’ Revised Exclusive Buyer Brokerage Agreements are Now Available. The new and/or updated forms below are additional options available to Buyer’s Brokers.
Property Pre-Touring Agreement: florida realtors’
This is a new form that can be used as a precursor to a Buyer Broker Agreement. It allows for disclosure of the Broker’s commission structure, confirmation that the commission is negotiable, and confirms that the Broker’s compensation from ANY source cannot exceed any final agreement between the consumer and the Broker.
This agreement does not contain all of the contractual language nor set out the rights and responsibilities of either party. It would be most appropriate to use as preliminary educational item at the beginning for the relationship between a potential buyer/consumer and the Broker.
Showing Agreement: florida realtors’
This updated form outlines in much more detail what compensation is due from the consumer in the event that they opt to purchase a home shown to them by a Broker. The form includes:
- Broker’s ability to list one or more properties that the agreement applies to;
- Negotiated commission to be outlined similar to the other newly released forms; and
- Addition of a non-refundable retainer to allow a broker to collect a fee upfront prior to showing any home.
Both of these agreements are less comprehensive than a Buyer Broker Agreement, so ensure you have your potential customers sign the form best suited to your situation. Keep in mind neither of these forms create an exclusive relationship in the same manner as the Exclusive Buyer Broker Agreement(s).
Modification to Exclusive Buyer Broker Agreement/Showing Agreement:
This form can be used to update commissions and does contain the updated language regarding commissions being negotiable and a Broker not being able to receive compensation from any source that exceeds the amount or rate agreed to with the consumer. It also includes an “other” section that allows any other terms of the agreement between the parties to be modified, including any other fees/expenses due or specific terms previously agreed to. Keep in mind this document does need to be signed by both the consumer as well as the Broker and a signed copy returned to the consumer.
Revised Exclusive Listing Agreements:
The Listing Agreements were also updated and revised to comply with the settlement agreement. The biggest takeaway from those changes are:
- The percentage of a deposit that the listing broker is entitled to has been changed from a default 50% to a blank or 0;
- A Section related to buyer-broker compensation has been added to confirm whether compensation is (a) being offered from seller to buyer’s broker directly, (b) from seller’s broker to buyer’s broker directly, or (c) no compensation is being offered.
- Compensation, if offered, would be confirmed by a separate agreement between the party paying—the seller or seller’s broker and the buyer’s broker, or in the case where no compensation is being offered, it would be governed by the buyer’s broker agreement.
You can also check out our recent blog on FAQs, Frequently Asked Questions: NAR Settlement and New Buyer Broker Agreements in Florida, as an additional resource for commonly asked questions.
By understanding these new rules and integrating them into your business, you can ensure a smooth transition and avoid common mistakes moving forward. Stay informed, be prepared, and reach out to your trusted real estate attorney to help navigate these changes.
