Buyer Broker Agreements

In compliance with the NAR settlement, Lake Country Board of REALTORS® updated its policies on Buyer Broker Agreements (BBAs), effective August 5, 2024.

What is Required?

All members of the Lake Country Board of REALTORS® Multiple Listing Service are now required to have a signed Buyer Brokerage Agreement (BBA) with their customers before they can tour a property. 

To clarify, property touring occurs when a buyer and/or the agent from the brokerage working with a buyer physically enters a home, or when the agent physically delivers a live virtual tour where the buyer isn’t present. In this case, a home is defined as a residential property of one to four dwelling units. Please note: a Buyer Broker Agreement is not required for any other property class, including rentals.

Requirements of a BBA

A Buyer Broker Agreement formalizes the working relationship between you and your client, outlining roles, responsibilities, and expectations. It establishes an exclusive relationship, protects both the client and the brokerage, and fosters transparency and trust. The National Association of REALTORS® requires the following components in any Buyer Broker Agreement:

• The specific amount or rate of compensation and how it will be determined must be disclosed. The amount must be specific, easily verifiable, and not open-ended.
• A clause prohibiting the brokerage from receiving more compensation services than the agreed amount or rate in the BBA.
• A clear statement that broker fees and commissions are not set by law and are fully negotiable.

Compliance with Buyer-Broker Agreements

While the Lake Country Board of REALTORS® will not collect Buyer Broker Agreements, we must ensure that they exist and contain all required components. Similar to listing contracts, we will request a copy of the original agreement if improper use is reported.

More to Explore

Lake Country Board of REALTORS® is proud to support you in the important work you do. We work diligently to keep you informed about how these changes will impact your business and ours. Please explore our resources, designed to support you and your real estate business through these changes.