What to Know About Buyer Broker Agreements

by Crescent City Living

Buyer Broker Agreements Required Starting August 15, 2024

Beginning August 15, 2024, all real estate agents will need a signed Buyer Broker Agreement before showing any properties. This is required by both the National Association of REALTORS and Louisiana law. But what does this mean for you as a home buyer?

What is a Buyer Broker Agreement?

A Buyer Broker Agreement is a contract between you and your real estate agent. It lays out the services your agent will provide and how they’ll be paid. This agreement helps make sure everyone is clear on what to expect during the home-buying process.

Why Is This Happening?

In the past, buyers typically didn’t pay their agents directly. The listing broker usually handled those fees. But with this new rule, that’s changing, and it will impact how you choose, hire, and pay your agent.

What’s in the Buyer Broker Agreement?

At Crescent City Living, we’ve always been committed to helping you find the right home, attend property showings with you, provide market advice, assist with offers and negotiations, and guide you through closing. We’ve always got your back, and that won’t change.

The only difference now is that we’ll have a written agreement with our buyer clients, just as we’ve always had with our sellers. Here’s what our contract will include:

Exclusive Partnership: You agree to work only with your agent for a set period.
Payment Details: How and how much your agent will be paid.
Contract Duration: How long the agreement will last.
Termination Clause: How either of us can end the agreement.

How Does Your Agent Get Paid?

In the past, buyer agents were paid by the seller through their listing agent. Now, buyers will be responsible for paying their agents. But don’t worry—you can still ask the seller to cover some or all of these costs as part of your offer. It’s all negotiable.

Can You Hire an Agent for a Short Term?

Yes! You can negotiate the length of your agreement with an agent, from as short as one day to several months or more. You can also negotiate how the agent will be paid, whether it’s a percentage of the sale price, a flat fee, or something else. In Louisiana, contracts can be amended in writing, so you can extend or end the agreement if needed.

What Should You Do Next?

We recommend interviewing a few buyer agents before you start your home search since you’ll need to sign an agreement before touring any properties. Don’t just pick the first agent you see—find one that’s right for you.