What is it, why does this exist and what does it mean to the buyer?
What is it? The agreement is a legally binding agreement between a buyer and its real estate agent that legally establishes the relationship. This ensures the agent is representing the buyer’s interests and outlining the terms of compensation between the buyer and the agent. In layman’s terms, the contract says who will pay the buyer’s agent commission whether the transaction goes through or not.
Why does this exist? Back in August of 2024 and after some time in court, it was a nationwide court ruling that mandates that buyers sign this agreement before viewing homes to ensure their agent will be paid compensation. This agreement aims at transparency when it comes to how and who will pay the buyer’s agent commission and to establish and solidify the relationship between the agent and the buyer. You can see the agreement from the Florida Realtors page here
What does it mean to the buyer? The Florida Realtors has posted on its website its Exclusive Buyer Brokerage Agreement as the contract form for Florida Realtors to ask/encourage/require prospective buyers to sign before showing them a house for sale. Prospective buyers would think that’s great. I’d like a real estate agent who only represents buyers on my side, rather than someone on the seller’s side. But that’s not what “exclusive” means in this case.
