As the deadline approached for implementing changes related to buyer broker compensation offers, brokers and agents were focused on disclosing seller’s offers. However, the transition from property viewing to making an offer presented a new challenge that many had not anticipated.
Nationwide, real estate professionals are grappling with how to incorporate buyer agent compensation requests and seller offers into purchase and sales agreements. Some have chosen to address this issue right from the beginning of the buyer-agent relationship.
One example is Leading Edge Real Estate in Boston, where broker-owner Linda O’Koniewski has introduced a buyer agency agreement with a professional fee section. This section outlines the buyer’s agreement to pay their agent and includes options for the buyer to request the seller to cover this fee or pay it out of pocket.
While most buyers prefer to have the seller cover the buyer agency compensation, some opt to pay it themselves, which can make their offer more appealing. It is crucial for agents to follow the buyer’s instructions to ensure they get paid, as the previous system of MLS enforcement is no longer in place.
Joanie McIntire, president of the New Hampshire Association of Realtors, emphasizes the importance of including information about compensation in purchase and sales agreements to avoid misunderstandings and ensure clarity during negotiations.
Prior to recent changes, buyer agency fees were typically included through cooperative compensation, but this practice has shifted with the requirement for explicit agreements outlining agent payment. In Florida, the implementation of compensation agreements has become necessary following the NAR settlement.
Lenders are also facing challenges due to the inconsistent inclusion of buyer agent compensation requests, leading to transaction delays and confusion at the closing table. Despite the complexities, real estate professionals agree that including this information in purchase and sales agreements is essential to avoid surprises and ensure transparency.