New Form Streamlines Broker Compensation Agreements

ORLANDO, Fla. — A series of recent form revisions introduces mostly technical updates, along with one notable addition affecting residential transactions: a new compensation form.

With the number of recent form changes, members may wonder why another compensation form was needed. This new document does more than add another option — it replaces two existing compensation forms.

In the summer of 2024, two compensation forms were created: the Compensation Agreement – Seller to Buyer’s Broker (CASB-1) and the Compensation Agreement – Seller’s Broker to Buyer’s Broker (CABB-1). Accompanying modification forms — Modification to Compensation Agreement – Seller to Buyer’s Broker (MCA-2) and Modification to Compensation Agreement – Seller’s Broker to Buyer’s Broker (MCA-1) — allowed parties to adjust the agreements as needed.

In theory, these four forms were to be used to make choices simpler. But in 2025, there was a greater demand to have one form that addressed both sellers and seller’s brokers who may be offering compensation based on the Florida Realtors® Exclusive Right of Sale Listing Agreement. Thus, the Compensation Agreement – Seller or Seller’s Broker to Buyer’s Broker (CASSB-1) was created. The single form takes the CABB and CASB forms and merges them together. The CABB and the CASB have now been retired and no longer available on Form Simplicity.

Along with the CABB-1 and CASB-1, the modification forms accompanying the CABB and CASB, the MCA-1 and MCA-2 have also been retired. Florida Realtors does not recommend using them any further. However, if you have transactions happening with these forms that predate the new form’s availability, they are still valid and enforceable.

This new form gives the parties the option in the first paragraph to choose if Seller or Seller’s Broker is offering compensation to a Buyer’s Broker. There are two checkboxes allowing the parties to select the appropriate party offering compensation. Note: there is no default if a box is not checked, therefore the parties will need to be diligent to check one of the boxes in Paragraph 1. If nothing is selected or filled in there could be enforceability issues later should there be a dispute about compensation.  

In Paragraph 2 there is also a checkbox to choose whether the “Property is listed by Seller’s broker” or if the “Property was not listed”. This checkbox is to determine if the seller signed a listing agreement or if they signed something else. For example, if a seller signed the Florida Realtors Commission Agreement, then the parties may choose the box that says, “Property is not listed” since no listing agreement was signed creating an exclusive listing relationship with the broker.

Another notable change in this form is in Paragraph 4. Term. The default duration of the CASSB-1 has been shortened to 15 days from 30 days, making this agreement shorter if you leave the blank empty. Parties can always negotiate a longer or shorter term by utilizing the blank.

Paragraph 6 for Dispute Resolution and Arbitration will appear a lot longer than in the previous forms because it accounts for options for how parties will resolve disputes based on who is offering compensation.  If the Seller is offering compensation, then the parties could choose to mediate their dispute then pursue litigation; the seller could choose arbitration in lieu of litigation. If the Seller’s Broker is offering compensation, then based on the National Association of Realtors® Code of Ethics and Arbitration Manual the Brokers will submit to binding arbitration to resolve their dispute. 

In addition to the CASSB-1 there is a new modification form called the Modification to Compensation Agreement - Seller or Seller’s Broker to Buyer’s Broker (MCSB-1). This form mirrors the new form if the parties negotiate new changes to the compensation agreement. Both forms are in Form Simplicity and live for your use.

Latest Updates to Real Estate Forms and Manuals (Link to

https://www.floridarealtors.org/tools-research/form-updates)

As always, the Florida Realtors Legal Hotline is available to assist you with your questions.

Heather Rhodes is Associate General Counsel.

Note: Information deemed accurate on date of publication.

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