FAQs: What You Need to Know Buyer Broker Agreements
Answers to common questions Realtors have about buyer broker agreements related to the NAR settlement.
- What is a “written buyer agreement?” What does it do?
NAR Settlement: Forms, Resources, Webinars from Florida Realtors
A written buyer agreement is an agreement between you and a real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services.
- What is the difference between the buyer agreements offered by Florida Realtors®?
Florida Realtors® offers 3 buyer agreement forms:
A Property Pre-Touring Agreement provides a way to provide the necessary disclosures the settlement to a consumer prior to showing property. This form also provides basic information regarding broker compensation.
A Showing Agreement may be used to create a buyer’s compensation agreement based on the showing of specified properties identified in the agreement .
An Exclusive Buyer Brokerage Agreement may be used when a broker wishes to act as a buyer’s agent and be paid compensation by the buyer. This form establishes an exclusive relationship with a buyer and provides for a retainer fee and duties to the buyer.
3. How are Buyer Broker Agreements enforced?
All contracts are negotiable, including the Florida Realtors® buyer compensation forms. These agreements are intended to provide clarity for the services practitioners provide to their buyers. Keep in mind it is up to the broker, not the sales associate or broker associate, to enforce the agreement. If a dispute arises pertaining to enforcing any agreement, then it would be up to the courts to determine the outcome. Some agreements may require mediation or arbitration but that will depend on the specific form.
4. How do we work with another agent if they are not willing to negotiate the compensation?
There are no laws requiring compensation be offered or negotiated by a seller or listing brokerage. However, there are duties in Article 3 of the Code of Ethics for Realtors to cooperate with other brokers even when compensation is not offered. Remember that the buyer is the party agreeing to pay compensation in a buyer compensation form. The buyer can negotiate compensation terms in their offer with the seller, much like they have always done with closing costs and other seller concessions.
5. I’m looking for guidance on what to charge buyers and tenants for retainer fees.
Compensation is fully negotiable and not set by law. Any compensation directives are a broker’s independent business decision so it would be up to you to speak with your broker for what that means specifically.
6. Will the buyer’s agent form change?
A revised Florida Realtors® Exclusive Buyer Brokerage Agreement form was posted on July 9, 2024, along with a revised Showing Agreement. The most recent revisions of all Florida Realtors® forms are available for use by members via Form Simplicity.
7. How is this going to affect buyers who have enough money for the house and such, but not enough to pay additional fees to a buyer's agent?
This will depend on your individual buyer and their unique financial situation. The buyer should communicate with their lender before making an offer, so they know what their options are, if any. Once the buyer knows what is available to them, then let your buyer direct you in their choices.
8. Will buyers negotiate directly with a listing agent to avoid paying a broker on the buying side?
Maybe. However, this is just like the buyer calling the name that is on the sign listing the property for sale. Buyers have always had that choice.
9. How do we discuss compensation with listing agents?
Everyone will need to start communicating directly with the listing agents. This may be done through a phone call, text message, email, etc.
10. What’s an effective way to explain the changes we are facing to the consumer?
NAR has resources for consumers that explain the terms of the settlement agreement from the NAR Burnett lawsuit. You can provide consumers with links to NAR for more information as well as the Consumer Guides that explain the buyer agreements further at https://www.nar.realtor/the-facts/nar-settlement-faqs.
11. What changes has the new agreement brought?
Effective August 2024, you are no longer able to place compensation information of any kind in the MLS. In addition, as a member of NAR, you are required to sign a Buyer Broker Agreement and disclose how you will be compensated. This is a new rule change that went into effect from NAR in August, based on the settlement.
The practice change requiring written agreements with buyers is triggered by two (2) conditions: 1) it only applies to MLS Participants "working with" buyers and 2) the written agreement must be entered into prior to "touring a home."
12. If I list a property and the seller wants to offer compensation to a buyer’s agent, how can I share this with buyer agents?
You are able to market and promote this information on social media, company websites, etc. From what has been provided by NAR:
MLS Participants and Subscribers may communicate offers of compensation to buyer brokers or other buyer representatives on their own websites for only listings of their own brokerage. (See Settlement FAQ 53 as of May 2025 https://www.nar.realtor/the-facts/nar-settlement-faqs).
13. How can we request to be paid? Who would pay the buyer agent compensation?
Have this discussion with your buyer. The purpose of the written Exclusive Buyer Broker Agreement is not only to specify your compensation but also outline your duties to the buyer. Remember compensation is fully negotiable and not set by law. There are multiple ways to request compensation, you just have to negotiate.
14. Where on the MLS listing can a listing agent disclose how much of a buyer's agent compensation a seller is paying?
Nowhere – at all. Compensation will not be allowed anywhere in the MLS. Here is the information as provided by NAR:
Effective August 17, MLS Policy will eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation on an MLS to buyer brokers or other buyer representatives. This includes offers of compensation from the seller in notes, remarks, or any other MLS field.
15. How do I find speaking points about presenting the Exclusive Buyer Broker Agreement?
Florida Realtors® has released webinars on the Florida Realtors® Exclusive Buyer Brokerage Agreements. There is also additional information on the NAR website. Your broker may be another source of talking points. You can find Florida Realtors webinar at this link https://www.floridarealtors.org/news-media/video-library/learning/webinar-lets-talk-buyer-broker-agreements.
16. How is our brokerage relationship affected by signing an EBBA or any buyer agreement? Does this make me a single agent? Am I still considered a transaction agent?
The NAR settlement does not change Florida brokerage relationship law. The need for a written buyer agreement does not change what you know about brokerage relationships.
There are four versions of the Florida Realtors® Exclusive Buyer Brokerage Agreement, which include the distinct brokerage relationships. You can choose which form to use that suits your needs.
17. How can I get an ABR (Accredited Buyer’s Representative) designation?
Reach out to your local association to see if and when they are offering the class. Also go to the NAR Website at: https://www.nar.realtor/education/designations-and-certifications/accredited-buyers-representative-abr.
18. How will the ABR designation apply to the new laws?
There are no new laws. NAR made rule changes for members, effective last August. As a member of NAR, you will no longer be able to place compensation information of any kind in the MLS. In addition, as a member of NAR, you will be required to sign a written buyer agreement and disclose how you will be compensated. The ABR course is designed to provide you with education to help you learn how to work directly with buyers. For more guidance on ABR post settlement, refer to NAR on how this course may have been updated.
19. Are we not allowed to have Sellers continue paying the compensation as they have been?
That is a business decision for each individual seller. Sellers can offer buyer brokerage compensation if they choose to and in the amount of their choice because compensation is fully negotiable and not set by law.
20. If a buyer won’t pay me is it best to transition to being a listing agent?
This would be a personal business decision whether or not you choose to work exclusively with buyers or sellers.
21. Will you need to have a buyer compensation agreement signed with anyone who wants to walk through an open house?
It depends. If you are a listing agent hosting an open house a buyer agreement is not immediately required. If you are working with a buyer taking them to an open house a written buyer agreement is required. Let’s look to the relevant NAR FAQs for insight:
Per NAR FAQ #73 it states:
The “working with” language is intended to distinguish MLS Participants who provide full or limited brokerage representation or services for the buyer (including transaction brokerage)—such as identifying potential properties, arranging for the buyer to tour a property, performing or facilitating negotiations on behalf of the buyer, presenting offers by the buyer, or other services for the buyer —from MLS Participants who simply market their services or just talk to a buyer—like at an open house or by providing an unrepresented buyer access to a house they have listed.
- If the MLS Participant is working only as an agent or subagent of the seller, then the Participant is not “working with the buyer.” In that scenario, an agreement is not required because the participant is performing work for the seller and not the buyer.
- Authorized dual agents, on the other hand, work with the buyer (and the seller).
- A written buyer agreement is required prior to a buyer “touring a home.” An MLS Participant “working with” a buyer can enter into the written buyer agreement at any point but must do so by no later than prior to the buyer “touring a home,” unless state law requires a written buyer agreement earlier in time (See FAQ 74 “What does it mean to tour a home?”). (Updated 8/6/24)
FAQ# 74 What does it mean to tour a home? states:
- Written buyer agreements are required before a buyer tours a home.
- Touring a home means when the buyer and/or the MLS Participant, or other agent, at the direction of the MLS Participant working with the buyer, enter the house. This includes when the MLS Participant or other agent, at the direction of the MLS Participant, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present.
- A “home” means a residential property consisting of not less than one nor more than four residential dwelling units.
FAQ #77. If an MLS Participant hosts an open house or provides access to a property, on behalf of the seller only, to an unrepresented buyer, will they be required to enter into a written agreement with those buyers touring the home?
- No. In this case, since the MLS Participant is only working for the seller, and not the buyer, the MLS Participant does not need to enter into a written agreement with the buyer.
FAQ #78. Are written buyer agreements required when listing agents talk with a buyer on behalf of a seller only or as subagents of the seller?
- No. An agreement is not required because the participant is performing work for the seller and not the buyer.
FAQ #79. Are written buyer agreements required when MLS Participants perform ministerial acts?
- Yes. The obligation to enter into a written buyer agreement is triggered just prior to an MLS Participant taking a buyer to tour a home, regardless of what other acts the MLS Participant performs for the buyer.
- An MLS Participant performing only ministerial acts—and who has not taken the buyer to tour a home—is not working with the buyer and therefore does not yet need to enter into a written buyer agreement. (Updated 7/23/24)
22. Will listing agents charge a lower compensation to seller?
This may happen, as all compensation is negotiable and not set by law. The terms of each brokerage’s listing agreement with the seller are negotiable amongst the parties.
23. Can you mention anywhere in a MLS listing that the owner and listing agent are compensating buyer’s agents?
No information on compensation of any kind can be placed in the MLS. Per NAR:
Effective August 17, 2024, MLS Policy will eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation on an MLS to buyer brokers or other buyer representatives. This includes offers of compensation from the seller in notes, remarks, or any other MLS field.
24. What happens if a prospective buyer wants to see a home and refuses to sign a buyer compensation agreement?
We are seeking clarification from NAR on what the outcome would be if the buyer refuses to sign a Buyer Broker Agreement, per the settlement agreement and rule change.
If the buyer refuses to sign a buyer compensation agreement you could offer the buyer to use a different form. Otherwise, you may defer to your broker on how to proceed.
25. What will happen to VA buyers with Exclusive Buyer Broker Agreements and compensation?
This is an evolving issue. NAR is awaiting a reply from the VA.
26. What about VA loans and the prohibition on buyers paying compensation directly?
The Department of Veterans Affairs (VA) announced that it has temporarily lifted its ban on buyers paying for real estate agent representation. Veteran buyers now have more options, ensuring they can have professional access to representation in their home buying process. The VA’s policy took effect on August 10, 2024.
The VA is evaluating the need for a formal rulemaking process on this issue.
NAR advocated for this change as we want to ensure veterans maintain access to the VA home loan program, which has been a significant tool in helping service members achieve the American dream of homeownership.
NAR recently submitted a letter to the VA urging them to make this revision to their policies. (Updated 7/8/24)
27. Would Fannie Mae and or Freddie Mac allow for Seller's concessions to cover Buyer's Broker transaction fees?
Yes – most recently both Fannie Mae and Freddie Mac published explicit confirmations that buyers whose agent is compensated by the seller will continue to have access to financing through those institutions. Furthermore, so long as it remains "customary" for the seller to pay commissions, those fees will not be added to the interest party contributions (IPC) and subject to the caps on IPCs.
However, neither of these agencies will allow the buyer to finance a commission into the mortgage at this time.
28. Can real estate commissions be financed?
Financing commissions is not feasible under the current structure of the residential mortgage finance system, and there is no clear short-term legislative or regulatory fix.
29. What MLS policies have changed?
The following MLS policies have changed:
- Eliminate and prohibit any requirement of offers of compensation in the MLS between listing brokers or sellers to buyer brokers or other buyer representatives.
- Eliminate and prohibit MLS Participants, Subscribers, and sellers from making any offers of compensation in the MLS to buyer brokers or other buyer representatives.
- Require the MLS to eliminate all broker compensation fields and compensation information in the MLS.
- Require the MLS to not create, facilitate, or support any non-MLS mechanism (including by providing listing information to an internet aggregator’s website for such purpose) for Participants, Subscribers, or sellers to make offers of compensation to buyer brokers or other buyer representatives.
- Prohibit the use of MLS data or data feeds to directly or indirectly establish or maintain a platform of offers of compensation from multiple brokers or other buyer representatives.
- Reinforce that MLS Participants and Subscribers must not, and MLSs must not enable the ability to filter out or restrict MLS listings that are communicated to customers or clients based on the existence or level of compensation offered to the cooperating broker or the name of a brokerage or agent.
- Require compensation disclosures to sellers, and prospective sellers and buyers.
Require MLS Participants working with a buyer to enter into a written agreement with the buyer prior to touring a home.
30. Do we have to sign a buyer compensation agreementfor every property?
No, one agreement can cover multiple properties. It depends on what agreement is used and the terms of the agreement. For example, an Exclusive Buyer Brokerage Agreement may cover all properties during a specific timeframe versus a Showing Agreement where the property needs to be identified on the form.
31. Can the amount of compensation on the Buyer/Broker Agreement be indicated as a range?
Per NAR FAQ #87, it states:
- No. Under the settlement, any compensation agreed to in the written buyer agreement must be objectively ascertainable and not open-ended.
- For example, a written buyer agreement cannot have a commission that is “buyer broker compensation shall be whatever amount the seller is offering to the buyer” or "between X and Y percent."
- Importantly, NAR policy will not dictate the amount of compensation agreed between buyers and buyer brokers (e.g., $0, X flat fee, X percent, X hourly rate). (Updated 7/15/24)