Buyer Brokerage Services Agreement

Posted June 10, 2024 in Real Estate Trends

tracie demars, Clark County WA real estate agent

As of January 1st, 2024, the Buyer Brokerage Services Agreement is now a REQUIRED form in the state of Washington for Realtors to provide real estate services to a buyer. While there have been Buyer Agency Agreements around for the past decade or so they have not been required before.

I have a Buyers & Sellers Pamphlets available, and the following is copied from the Buyers Pamphlet.

As of January 1st, 2024, this is now a legally required form. This form gives your Realtor the legal right to represent the buyer.

Section 1: Area
What areas is the buyer looking into?

Section 2: Term
How long is the contract between the buyer and Realtor?

Section 3: Agency (A, B, & C)
A is to acknowledge receipt of the Real estate Brokerage in Washington pamphlet.

B is the Realtor who is representing you as your buyers Realtor. Sometimes you think you are hiring a Realtor, but getting shipped to another Realtor on their team.

C is the relationship (be careful here)

**If the Exclusive box is checked this is a serious engagement, and just like any other serious engagement there are strings attached that can cost you money/fees if you want to dissolve the relationship prior to contract ending

**If the Non-exclusive box is checked, this is light dating, and is easier to dissolve prior to the contract ending and usually with no money/fees strings attached. 99% of Realtors are going to have the Exclusively Dating Option automatically checked when going over this contract. If you are not comfortable with a serious engagement, and are only interested in light dating still, then you will need to keep your eyes open for this to make changes.

Section 4: Limited Dual Agency
If you sign this portion you are agreeing to a dual agency situation. Please understand what Dual Agency means to your right to your own representation. Is it a dual agency, or will you be an unrepresented buyer? You can decline to sign section 4 if you don’t want/or agree with Dual Agency.

Section 5: Compensation (be careful here)
As a buyer you need to understand how your Realtor is being compensated and paid for their time and assistance.

Section 6 talks about if seller is offering a BAC (buyer agent commission) and how it is paid. Line A details if the offered BAC compensation is equal to the compensation that was in Section 5, Paragraph A. Line B details options if the offered BAC is more than Buyers Realtor minimum Compensation. Line C details the options for when the offered BAC is LESS than the Buyers Realtor minimum fee/compensation.

Section 7 talks about when compensation is due. Compensation is due when the purchase closes in most cases. No one gets paid unless the keys get exchanged. In some instances, there are fees paid if the transaction doesn’t close, or if a listing cancels. That is between the Realtor and their seller and/or buyer client.

Section 8 Showings, Listings & VA financing.
Just because every buyer has the right to pay their own Realtor, not everyone has the ability to pay for their own representation. This section gives the buyers the option to tell their Realtor to not show them any home where a BAC is not being offered by the sellers/sellers Realtor.

Section 9 Buyer is responsible for buyers due diligence when purchasing a home.

Section 10 Inspections are always recommended. Buyer has the right to hire the licensed inspector they want.

Section 11 details the distressed home conveyance. This is a transaction where a buyer purchases a property from a distressed homeowners (as defined by Chapter 61.34 RCW) which allows the distressed homeowner to continue to occupy the property, and promises to convey the property back, or promises an interest in, or portion of the proceeds from the resale of the property (unless otherwise agreed in writing).

Section 12 Fair Housing.

Section 13 Attorneys Fees.

Section 14 Other. This is a box where other terms can be negotiated.

If you are thinking about buying and have been presented with this form by your Realtor, know what you are signing, and what it means before you sign.

I am always happy to help! Call, email or text me anytime!