Under the 2024 NAR settlement rules, buyer agency agreements must be signed before an agent can show property to a buyer. The agreement specifies the duration, geographic area, property type, and compensation terms.
Before touring homes, a buyer signs a buyer agency agreement with Agent Smith specifying a 3-month term, 2.5% commission, and coverage for single-family homes in the Dallas metro area.
Post-2024 NAR settlement, buyer agency agreements are MANDATORY before showing property. Know the required elements: duration, scope, compensation amount, and how compensation can be paid.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
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