When the agreement has to be signed
NAR's Consumer Guide to Written Buyer Agreements says written buyer agreements became a nationwide requirement for many real estate professionals on August 17, 2024, as part of NAR's proposed settlement of litigation over broker commissions. A buyer will be asked to sign one before touring a home with their agent, in person or virtually.
Florida Realtors' NAR settlement FAQ applies the same rule to Florida members: written buyer agreements are required before a buyer tours a home, and that includes a live virtual tour for a buyer who is not physically there. The same FAQ says these are NAR rule changes for members, not new Florida laws, and that the settlement does not change Florida brokerage relationship law.
| Situation | Signed agreement needed first? | Source |
|---|---|---|
| You tour a home with a buyer in person | Yes, before the tour | NAR consumer guide; Florida Realtors FAQ |
| You give a live virtual tour to a buyer who is not there | Yes, before the tour | Florida Realtors FAQ |
| You take your buyer to another agent's open house | Yes | Florida Realtors FAQ |
| You host an open house as the listing agent and a buyer walks in | Not immediately | Florida Realtors FAQ |
| A buyer visits an open house alone or asks about your services | No | NAR consumer guide |
What the compensation line must say
This is the line that gets agreements sent back. NAR's consumer guide says compensation must be clearly defined, for example $0, a flat fee, a percentage, or an hourly rate, and that it is negotiable and not set by law. Florida Realtors' FAQ says the amount must be objectively ascertainable and that NAR policy does not set it. Texas Realtors add that it cannot be open-ended or a range, and that a buyer broker may not receive compensation from any source beyond the amount in the written agreement.
Brokerage commissions are not set by law and are fully negotiable. Broker may not receive compensation from any source that exceeds the amount or rate agreed to with Consumer.
| What you write | Does it pass? | Why |
|---|---|---|
| 3% of the total purchase price | Yes | One percentage of a known amount |
| $9,500 flat fee | Yes | One dollar amount |
| 2.5% to 3% | No | A range, which Texas Realtors say the line cannot be |
| Whatever the seller offers | No | Open-ended, with no figure the buyer can check |
Two more rules from Texas Realtors are worth keeping on your desk: do not amend a buyer agreement only to match a higher compensation offer, and do not create several agreements with one buyer to get around these requirements.
Showing agreement or full buyer agreement
Not every buyer is ready for a full relationship on day one. Florida Realtors' FAQ lists three forms, and each one does a different job.
| Florida Realtors form | What it does, per the Florida Realtors FAQ | When to use it |
|---|---|---|
| Property Pre-Touring Agreement | Provides a way to give the necessary disclosures | Before a first tour, when your brokerage uses it |
| Showing Agreement | Can create a buyer's compensation agreement based on showing specified properties | A buyer who wants to see one or two named homes first |
| Exclusive Buyer Brokerage Agreement | Sets up an exclusive relationship with a buyer, with a retainer fee and duties to the buyer | A buyer you will work with through the search, the offer, and the closing |
Fill it in, section by section
This walk-through follows the Florida Realtors Exclusive Buyer Brokerage Agreement, version EBBA-7tn Rev 7/24, which Florida Realtors posted on July 9, 2024. Florida Realtors publish more than one version of this agreement, so use the version your brokerage requires and check that the paragraph numbers match.
| Paragraph | What you fill in | Check before you send it |
|---|---|---|
| 1. Parties | Each buyer's name and the brokerage's name | Every buyer who will sign is named. Texas Realtors note the agreement is between the buyer and the broker, not the sales agent. |
| 2. Term | The start date and the Termination Date | The form ends at 11:59 p.m. on the Termination Date, and it continues if a purchase is pending then. NAR says the length is negotiable. |
| 3. Property | The type of property and the location | It matches what the buyer told you they want. |
| 6. Retainer | A retainer amount, only if you agreed on one | The form calls it non-refundable and in addition to any other compensation. Say so to the buyer. |
| 7. Compensation | One dollar amount or one percentage for a purchase, plus the lease and option lines if they apply | One clear figure, as in the table above. |
| 8. Protection period | The number of days after the Termination Date | The form uses 30 days if you leave it blank. Explain what it covers. |
| 9. Conditional termination | The cancellation fee | Agree on the amount with the buyer before they sign. |
| 10. Dispute resolution | Initials, only if the parties choose arbitration | Mediation comes first. Point out the initials so nobody skips them by mistake. |
| 12. Brokerage relationship | The Single Agent Notice, and the consent to transition to transaction broker if the buyer agrees | The buyer signs only the parts they agreed to. |
| 13. Other terms | Anything else you agreed on | If you said it, it is written here. |
| 14. Acknowledgment; modifications | Signatures and dates for the buyers, the associate, and the broker | Every party signs and gets a copy of each page. |
Explain it in 60 seconds
Send this before the showing, not at the front door. Fill in the brackets with the terms you agreed on.
Before we tour, I need a signed buyer agreement. It is a short contract between you and my brokerage. It says what I do for you: help you find homes that fit, set up showings, negotiate, and get you to closing. It also says what I am paid: [amount]. That amount is negotiable and is not set by law, and I cannot be paid more than what we write in it, from any source. It runs from [start date] to [end date]. If you want to end it early, here is how: [cancellation terms]. You can also ask the seller to pay some or all of it. Read it, ask me anything, and sign from your phone.
Do I have to sign to see a house?
To tour it with an agent, yes. NAR's consumer guide says you will be asked to sign before touring, in person or virtually. To visit an open house on your own, no.
What does it cost me?
The amount written in the agreement. NAR's consumer guide says you are responsible for paying your agent as the agreement says, and that you can still ask for, negotiate, and receive compensation from the seller or the seller's agent.
Am I locked in?
For the term written in the agreement. NAR's consumer guide says you and your agent can agree together to change the agreement, and that each agreement sets its own conditions for ending it, so read them. On the Florida Realtors form, the buyer can ask the broker for a conditional termination, with the cancellation fee written in paragraph 9.
Get it signed before the tour
- When a new buyer asks for a showing, send the 60-second explanation the same day, before you confirm the tour.
- Agree on the term, the compensation, the protection period, and the cancellation fee by phone or in writing.
- Fill your brokerage's current form with those terms, using the section-by-section guide above.
- Read the filled copy line by line against that guide before anyone signs.
- Send it for electronic signature to every buyer who signs. The Florida Realtors Exclusive Buyer Brokerage Agreement says electronic signatures are acceptable and binding. Use the signing tool your brokerage allows.
- It is done when every buyer, the associate, and the broker have signed, every party has a copy, and the signed copy is in your brokerage file. Then confirm the tour.
If you use Reddy, you can save your brokerage's buyer broker agreement once: send the PDF in chat or upload it in the Workspace, and set up its fields once in the Workspace. For a new buyer, ask in chat for a filled agreement. Reddy uses what you tell it and what the deal record already holds, asks for any missing value instead of guessing, and fills only the form's fields, never its printed text. The filled copy comes back to your chat to review. When it is right, ask Reddy to send it for signature: it shows who signs, up to two people, and emails each one a signing link only after you say send. Every party gets the signed copy by email. Before the first form goes out, the account owner reads a short statement about your brokerage's rules and accepts it, once. You still check every value, and you keep using the form your brokerage requires.
