As a REALTOR® working with buyers in Florida, it's crucial to establish the right agreements from the outset. These agreements clarify the relationship between you and your buyers, protect your time and effort, and ensure you're properly compensated for your work. With the ever-changing real estate landscape, being proactive in having your buyers sign the appropriate agreements is more important than ever, especially when writing offers.
Below is an overview of the key Buyer Broker Agreements you should be familiar with. Each serves a specific purpose and can be strategically used depending on the needs of your buyer. We've also provided links to each document so you can access them easily.
1. Exclusive Buyer Broker Agreement, Transaction Broker
• Overview: This agreement is perfect for situations where you represent the buyer but want to maintain a neutral position between the buyer and seller. It limits your fiduciary duties but ensures fair and honest treatment to both parties. View Agreement
• Key Features:
• Limited confidentiality
• No loyalty or obedience obligations to the buyer
• When to Use: Use this agreement when your buyer prefers less representation or when you're representing both sides of the transaction.
2. Exclusive Buyer Broker Agreement, Transaction Broker
• Overview: This agreement offers full fiduciary duties, including loyalty, confidentiality, and obedience, ensuring you are fully committed to representing your buyer's best interests throughout the transaction.
• Key Features:
• Full fiduciary duties
• Exclusive loyalty to the buyer
• When to Use: This is ideal for buyers who want comprehensive representation, especially when writing offers in a competitive market. View Agreement
3. Showing Agreement
• Overview: This short-term agreement is great for buyers who are just starting out or want to see only a few properties before committing to a full buyer-broker agreement. It gives you the flexibility to show properties without a long-term commitment.
• Key Features:
• No long-term commitment
• Basic representation during property showings
• When to Use: This agreement is for new or casual buyers who are in the early stages of their home search. View Agreement
4. Pre-Touring Agreement
• Overview: Similar to the Showing Agreement, the Pre-Touring Agreement allows you to show properties while protecting your time. This agreement is particularly useful if your buyer is still deciding on their long-term commitment to working with you.
• Key Features:
• Limited Commitment
• Protects your time and investment
• When to Use: This is best for buyers who want to start viewing properties but aren't ready to commit to a full representation agreement yet. View Agreement
Important Reminder: Confirming Compensation
Before submitting an offer, always check with the listing agent to confirm whether there is a compensation agreement in place with the seller or the listing brokerage. This ensures clarity on how your commission will be handled and prevents misunderstandings that could affect your compensation.
