Following the

NAR settlement,

the

National Association of REALTORS® (NAR)

mandates that written buyer agreements, such as the

Buyer Representation and Broker Compensation (BRBC) agreement,

must be signed before agents tour homes with clients.

These agreements must be clearly defined.

courtesy of

National Association of REALTORS®

Key NAR Requirements for BRBC Agreements

Timing:

Agreements must be signed before any home tour (in-person or virtual)

Compensation Transparency:

the BRBC must specifically state the amount or rate of compensation, which cannot exceed what is agreed upon in the contract.

No Open-Ended Terms:

compensation cannot be open-ended, such as "whatever amount the seller is offering".

Negotiation:

the terms, including compensation, are fully negotiable and can be changed.

Applicability:

applies to MLS-listed properties, effective August 17, 2024.

Consistency:

the BRBC should not allow the broker to receive compensation from outside sources that exceed the agreed-upon amount in the agreement.

courtesy of

National Association of REALTORS®

NAR has long advocated for written agreements to clarify the agent-client relationship, ensuring both parties understand the services provided, compensation structure, and roles.

National Association of REALTORS® Consumer Guide to Written Buyer Agreements

BRBC