BUYERS BEWARE: Make sure you have the Right Agent on Your Side

As mandated by the recent National Association of Realtors Settlement Agreement, Florida Realtors has introduced updated Exclusive Buyer Brokerage Agreements. Starting August 17th, 2024, all real estate brokers must ensure buyers sign an Exclusive Buyer Brokerage Agreement before touring any homes. These updated agreements replace the previous versions last revised in 2016, incorporating necessary disclosures from the NAR Settlement along with several additional changes.  Although this is not a LAW it is a mandate Nationwide.

Keep in Mind:

Kim Donahue has over 25+ years in the Real Estate Industry and was a Broker in Michigan.  This is truly nothing new.  Buyer’s Agent were always encouraged to sign Buyer Broker Agreements with Buyers they were working with to protect both themselves and their buyers.  I personally have always advocated for our buyers by ensuring either the seller or the Listing Brokerage was willing to pay our fees.  As always, all fees and commissions are negotiable this will never change.  We are prepared to negotiate heavily for our buyers to do all we can for them not incur fees that are unnecessary.  I personally am a Nationally Certified Expert Advisor and have been trained to support both buyers and sellers. Schedule a no obligation Buyer Consultation with our team today: www.ConnectWithKimandDave.com

How we have Protected Our Buyers and Will Continue to Do So:

New Construction: We have helped several buyers by negotiating on their behalf in some instances up to $30,000 off the list price and up to $20,000 in additional incentives along with negotiating to have the builder pay our Buyer Agent Fees.

Residential Resale Homes/Condos: We have helped several buyers by negotiating on their behalf closing cost credits, rate buy downs, seller concessions, furniture, repairs, etc.. including ensuring our Buyer Agent Fees were paid by either the Seller or the Listing Brokerage.

Both New Construction and Residential Resale: We protected our buyers on numerous occasions from purchasing homes that did not meet their standards or budget for repairs upon completing inspections.  We were able to walk them through the release and cancellation process to cancel that contract retain their Earnest Money Deposit and move on to a more solid investment for them.

There are many more stories.  My question to you is, with these changes:

Who would you want protecting you as a Buyer?

• An Experienced Agent who has served 1000's of Buyers
• An Experienced Agent who has proven skills in negotiations
• An Experienced Agent who can protect you and your money
• An Experienced Agent takes the time to understand your wants, needs, desires and budget
• An Expert Agent Advisor in the Market and Area you want to live in
• An Expert Team that has resources to help you as a Buyers

What is an Exclusive Buyer Brokerage Agreement?

An Exclusive Buyer Brokerage Agreement is a formal contract between a real estate broker and a potential homebuyer. At Kim and Dave Luxury Team, we work with four variations of this agreement, each tailored to different types of broker representation: single agent, transaction broker, single agent with consent to transition to transaction broker, and no brokerage relationship. Through this agreement, buyers commit to working exclusively with our team in their property search, in exchange for a commission paid to the broker. In return, we pledge to represent our buyers' interests, offering professional advice, market insights, and skilled negotiation to secure the best possible contract.

Revisions in the Agreements

The most notable changes to the revised agreements include:

• Negotiable Broker Commissions: The agreements now clearly state that broker commissions are not set by law and are fully negotiable. Additionally, brokers may not receive compensation from any source that exceeds the agreed amount or rate with the buyer.
• Clarified Compensation Provisions: Compensation received by the buyer’s broker from a seller or seller’s broker will now reduce any amount owed by the buyer. This clarification builds on a similar provision in the previous agreements.
• Retainer Provisions: The revised agreements specify that any retainer paid to the buyer’s broker upon execution of the agreement is in addition to the broker's earned compensation. The option to credit the retainer towards any amount owed has been removed.
• Property Section Updates: The revised agreements no longer specify the price range of the property sought by the buyer or whether the buyer is preapproved with a lender.
• Buyer’s Obligations: Buyers now commit to diligently making a good faith effort to perform contract terms and to close on the sale of any contracted property.
• Protection Period: A default protection period of 30 days has been added, with a blank space to adjust this duration if necessary.
• Arbitration Option: An option for arbitration of disputes has been included. If not agreed upon, disputes may be litigated in court. Previous agreements required arbitration.

What’s Next?

July will also see the release of several updated forms, including an Amended Showing Agreement, Amended Retainer Agreement, Amended Listing Agreements, a Modification to Buyer Broker Agreement, and additional forms for compliance with settlement requirements for existing agreements.

Final Thoughts

The revisions to the Exclusive Buyer Brokerage Agreements ensure compliance with the NAR Settlement Agreement. While many anticipated a significant overhaul, the changes are more about refinement than complete transformation. At Kim and Dave Luxury Team, we understand that these updates mean more paperwork, but we see it as an opportunity to further streamline our services. We’re committed to learning and mastering these new forms before the August 17th deadline to continue providing exceptional service to our clients.

By adopting these updated agreements, we aim to enhance our dedication to our clients, ensuring transparency and professionalism in every transaction. As always, Kim and Dave Donahue are here to guide you through the process with the expertise and care that you’ve come to expect from the Kim and Dave Luxury Team. Connect with us today:  www.ConnectWithKimandDave.com