Buyer-Broker Agreement: Key Changes Explained
Are you legally required to sign a buyer-broker agreement before looking at houses? While many people, including Realtors, might tell you it’s a law, it’s not. The buyer-broker agreement is just a requirement from the NAR. This nationwide change results from a settlement with the NAR saying that you must sign a buyer-broker agreement to look at properties. In the Albuquerque metro area, this change went into effect on August 1 and August 17 on a national level.
This agreement is not a free pass to look at houses but a binding contract saying that you agree to pay your buyer-broker their commission going forward. For example, if you find the perfect home on the internet and you’d like to go and look at it, your broker will have you sign this document.
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Essentially, buyer-brokers will typically negotiate their commission when submitting an offer to the seller. The seller does not have to pay the buyer’s agent a commission. So, as a homebuyer, be sure you understand the document you're signing. If you signed to pay a certain commission, you are responsible for paying that buyer-broker's commission.
This is a major change for consumers. It’s more transparent, but it also means the process has changed. While some things, like open houses, won’t be different, it’s always a good idea to check with your Realtor to make sure.
If you have any questions, please contact our team at New Mexico Home Deals. We are well-versed in this new requirement. You can also reach us on Instagram or at (505) 234-5820. We’re happy to talk to you.