Everything you know about buyer broker agreements might be completely wrong. Starting August 17th, 2024, a new rule will require you to sign a written agreement with your real estate agent before you can tour any properties. This agreement outlines how much the agent will be paid if you decide to buy, whether it’s a percentage, a flat fee, or an hourly rate. While this sounds straightforward, there’s a potential catch—you could be locked into a long-term commitment without realizing it. Even if you just want to see one house, you could end up owing money to the agent even if you purchase a home through someone else.
Let’s break down the different levels of buyer broker agreements. A Touring Agreement is the least commitment and only applies to open houses or up to three showings, similar to a casual lunch date. A Non-Exclusive Agency Agreement takes things a bit further, where the agent owes you fiduciary responsibility and might assist with more than just touring. The most serious option is the Exclusive Agency Agreement—once signed, you’re committed to working with that agent, and if you buy a home with another agent, you could still owe money to the first one.
Before signing any agreement, be sure to ask these key questions: What properties does the agreement cover? How long does the representation last? Is this an exclusive agency agreement? What happens if things don’t work out between you and the agent? How much will you owe if you buy a home? And lastly, what other terms are involved? For open houses, the good news is you don’t need to sign a written agreement—signing in is optional, as per the National Association of Realtors.
Ready to find your dream home in Newport Beach? Don’t get caught up in confusing contracts—work with an agent who puts your needs first. Contact Jarett Richards for a free buyer consultation today! Call or text at 949-405-4455 to get started. Let’s make your home-buying journey seamless and stress-free.
