New National Association of Realtors (NAR) rule mandates written agreements after a Court's Decision

• The settlement provides that MLS participants working with buyers must enter into written representation agreements with those buyers.

• MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home. 

 
 
 If you want us to best represent your interest, help you locate the perfect property, negotiate the best deal possible, be with you during every step of the process, then we would need to establish a Buyer Agency relationship. Technically speaking, until your relationship with the agent is defined, as described in the below Buyer Agency Agreement, "your" agent can't give you all the background information such as how much comps sold for in the area you are looking in, disclose any inside info on listings that are not public record, or even negotiate in your behalf (pricing discounts, upgrades , incentives. etc.). The Buyer Agency Agreement allows the agent to work for the buyer, without it in place, the agent would merely be a Transactional Broker, or simply put, a "customer service" rep. .The agreement below outlines that fiduciary relationship you would need to gain the most complete service. Please review, and please ask any questions, for we are there to help you in every way possible.

 
Sample
Alabama REALTORS® 2024                       Buyer Agency Agreement

NOTICE: This is a legally binding contract. If there are any terms of this document which you do not understand, consult an attorney before signing. This Buyer Agency Agreement (“Agreement”) is entered into and effective as of this ______ day of ___________________, 20_____ between Buyer(s) __________________________________ (“Buyer”) and Company , Lokation Real Estate, by and through Broker/Agent  Dan Elliott ,  (collectively, the “Parties”).

 

The Parties hereby agree as follows: 
1. Appointment of Buyerʼs Agent: Buyer appoints Broker/Agent ______________ of Company ___________________ as Buyerʼs exclusive Broker/Agent for the purpose of locating real property for purchase on terms acceptable to Buyer, as indicated by an offer to purchase or other agreement that is accepted by a seller. Broker/Agent accepts the appointment, on the terms and conditions below, and agrees to represent Buyer diligently within the areas of Broker’s/Agentʼs expertise.
 
2. Effect of Exclusive Buyer Agency Agreement: By appointing Broker/Agent as Buyer's exclusive real estate agent, Buyer agrees to conduct all negotiations for property through Broker/Agent and refer to Broker/Agent all inquiries received from other agents or prospective sellers during the term of this Agreement. Buyer understands that commission payable to Broker/Agent under Paragraph 10 of this contract shall be deemed earned upon Buyer's purchase of real estate regardless of whether Broker/Agent was directly involved in the transaction leading to such purchase. This would include properties seen through open houses, for sale by owners, or other situations when Broker/Agent was not directly involved.
 
3. Notices All correspondence under this Agreement, including amendments thereto, shall be in writing and shall be delivered to:
Buyer Mailing Address: ___________________________
City/State/Zip: ________________
Home Phone: ________________
Cell Phone:____________ 
Email: ______________________
Broker/Agent Mailing Address: ________________________
City/State/Zip:__________ 
Work Phone: ___________ 
Cell Phone: ____________
Email: _____________________
 
4. Real Property Description and Location:

    Buyer’s general description of possible, suitable properties include:

__________________________________________________________________________________________________________________________________________________________________  
5. Parties’ Responsibilities: During the term of this Agreement, the Parties agree to the following: a. Broker/Agent agrees to: i) assist Buyer in locating and viewing suitable properties, ii) assist Buyer in negotiating to purchase property selected by Buyer, and iii) assist Buyer in monitoring closing procedures and deadlines. b. Buyer agrees, as set out above, to: i) conduct in good faith all negotiations for property exclusively through Broker/Agent, ii) hold Broker/Agent harmless from any claims resulting from incomplete or inaccurate information provided by Buyer, iii) provide agreed upon earnest money when required by a purchase agreement; and iv) compensate Broker/Agent as provided in Paragraph 10. Authorized for use by Doris Armstrong © 2024 Alabama REALTORS®. All rights reserved. Page 2 of 3 Alabama REALTORS® 2024 Buyer Agency Agreement
 
6. Dual Agency and Conflict of Interest: Buyer acknowledges that it is possible that the Company of the Broker/Agent may represent both the seller and Buyer in the same transaction. This is called Limited Consensual Dual Agency and can only occur with the written consent of both Buyer and the seller. This means that since the Company has two clients in the same transaction, there may be a limitation on the Broker/Agent’s ability to represent either party fully and exclusively. Buyer  will consider  will not consider a Limited Consensual Dual Agency. Should Buyer and the seller authorize Broker/Agent to act as a “Limited Consensual Dual Agent,” Buyer agrees that the Limited Consensual Dual Agency Agreement shall be executed by Buyer and made an integral part of the Purchase Agreement.
 
7. Disclosure of Buyer's Identity: The Broker/Agent  does  does not have Buyer’s permission to disclose Buyer's identity to all property owners and other third parties.
 
8. Buyer’s Hold Harmless: Buyer hereby agrees to hold Broker/Agent harmless from any losses or damages arising from this Agreement, provided Broker/Agent is not at fault, including, but not limited to attorney's fees reasonably incurred by Broker/Agent.
 
9. Inspections: Buyer understands that Broker/Agent is not an expert on matters of property condition, structural integrity, hazardous substances, property boundaries, square footage, electrical systems, and other areas requiring specialty expertise. Broker/Agent and Company recommend contacting professionals licensed in these areas to determine any issues with a property. If Buyer has legal or tax questions, an attorney or accountant should be consulted prior to signing.
 
10. Brokerage Fee: Buyer agrees to pay the Company:
a. An upfront fee of $   N/A   as partial consideration for the employment of the Broker/Agent; and
b. A fee of 3 % of the gross purchase price, at the time of closing or leasing of any property during the term of this Agreement. This fee will also apply to property for which Buyer signs a purchase agreement within 60 days after this Agreement expires or is terminated, if the property was shown or presented in writing to Buyer by Broker/Agent during the term of this Agreement. The Broker/Agent is directed by Buyer to first seek compensation through the transaction. Any fee paid through the transaction will be credited toward the fee owed to Broker/Agent under this paragraph. However, Buyer expressly acknowledges that (s)he shall remain liable to Broker for any remainder of the compensation due to Broker/Agent under this Agreement.
c. Legal Notice: Failure to complete fee blank in Paragraph 10(b) may be a violation of Alabama real estate license law and may cause the validity of this Agreement to be called into question.
 
11. Termination: This Agreement shall commence on the last signing date below and will not terminate until the sooner of __________________ (date) or the closing of a property by Buyer. Buyer may cancel this Agreement by written notice of termination, subject to the provisions of Paragraph 10, if applicable. If the Company or Broker/Agent gives written notice of termination of this Agreement to Buyer, Buyer shall be under no obligation to the Company except for obligations existing at the time of Termination.
 
12. Failure to Close: Should a seller fail to close with no fault on the part of the Buyer, fees payable pursuant to Paragraph 10(b) shall not be due. If Buyer is at fault, the full fee under Paragraph 10 will be due immediately from the Buyer.
 
13. Other Potential Buyers: Buyer acknowledges that Broker/Agent may represent other potential buyers/clients who may be interested in purchasing similar properties. Buyer understands that Broker/Agent will not disclose to either party the terms or conditions of the other buyer(s).
 
14. Nondiscrimination: Federal law, state law, the REALTOR® Code of Ethics, and this Agreement prohibit discrimination in the sale or lease of real property on the basis of race, color, national origin, religion, familial status, disability, sex, sexual orientation, or gender identity. Failure by either Party to abide by this provision is cause to terminate the Agreement.
 
15. Legal Advice: Buyer understands that this Agreement affects Buyerʼs legal rights. Broker/Agent and the Company are not licensed to practice law and cannot give legal advice. Buyer should obtain independent legal representation if Buyer does not understand the legal effect of any part of this Agreement. Authorized for use by Doris Armstrong © 2024 Alabama REALTORS®. All rights reserved. Page 3 of 3 Alabama REALTORS® 2024 Buyer Agency Agreement
 
16. Entire Agreement: This contract constitutes the entire Agreement between the Parties, and any other Agreements, whether written or oral, have been merged and integrated into this Agreement.
 
17. Brokerage Services Disclosure: Buyer hereby acknowledges that Broker/Agent has provided Buyer with written disclosure forms for signature describing the alternative types of brokerage services available and the specific types of brokerage services that are provided by Broker, known as the Real Estate Brokerage Services Disclosure (RECAD), as required by Alabama law.
 
The undersigned have read and approve this Agreement and acknowledge receipt of a copy.
 
____________________________________________                           _______________
             Buyer’s Agent/Broker                                                                                               Date
 
_______________________________________________                    _______________
                      Buyer                                                                                                                    Date
 
_______________________________________________                       _______________
                      Buyer                                                                                                                       Date