In Florida, a Buyer Broker Agreement is a contract between a homebuyer and a real estate brokerage.
The Buyer Broker Agreement sets the terms of their working relationship, especially regarding representation and compensation. Now, in Florida, agents must have buyers sign a BBA before showing properties, especially those listed in the Multiple Listing Service (MLS). This change comes from the NAR settlement, which aims to boost transparency and clarify buyer roles in real estate deals.
Key Points:
Exclusive Representation: The agreement often sets up an exclusive relationship, where the buyer agrees to work only with the brokerage for a certain period.
Compensation: The agreement specifies how the buyer will pay the broker—either a percentage of the sale price, a flat fee, or both.
Negotiating Compensation: Commissions are negotiable. The agreement will outline how the broker’s fee is set and paid.
Seller’s Role: While sellers may still contribute to the buyer’s agent’s compensation, it’s no longer automatically included in MLS listings. Buyers should be sure the terms of compensation payment are satisfactory.
Protection Period: This section ensures the brokerage gets paid if the buyer purchases a property they were shown within a specific time after the contract ends.
Conditional Termination: Buyers can terminate the agreement under certain conditions, possibly with a termination fee.
Important Tips for Buyers:
Read Carefully: Make sure to read the agreement carefully before signing.
Ask for Legal Help: If you’re unsure about any terms or if your agent is unable to explain them clearly, get a second opinion.
To sum up, the Florida Buyer Broker Agreement defines the relationship between a buyer and their agent. It covers representation, compensation, and key terms of their partnership.
