Learn about the new real estate forms you need to understand in 2024.

Addendum Regarding Brokers’ Fees

Residential Buyer/Tenant Representation Agreement - Long Form

Residential Buyer/Tenant Representation Agreement - Short Form

Compensation Agreement Between Broker and Owner

Compensation Agreement Between Brokers

The real estate landscape is shifting; we understand it can feel overwhelming. One major change is that as of August 17, we will no longer list commissions or co-broker fees in MLS. This is a significant adjustment, but it’s one we can navigate successfully together. We aim to make this transition as smooth as possible. So, let’s begin by understanding the essential forms and the order in which you’ll need to use them.

1. Buyer’s Agreement Forms. As a buyer’s agent, you must not show properties without discussing and signing agreements with your client. This agreement outlines how you get paid, your various duties, and the duration of your representation. While this has always been important, ensuring these agreements are in place is now crucial.

  • 1a. Residential Buyer/Tenant Representation Agreement (Short Form). The short form is a one-page document, effective from June 24, 2024, that simplifies the process of establishing your relationship with the buyer. It’s a great tool for representing a buyer when you haven’t had a lengthy discussion or consultation with them yet. It allows you to show a house while clearly stating how you will be compensated.
  • 1b. Residential Buyer/Tenant Representation Agreement (Long Form). The form is five pages long and offers more detailed protections for you as the agent. I recommend starting with the short form and then moving to the long form once you’ve established a solid relationship with your client.

“It’s essential to familiarize yourself with these forms so you can have clear conversations with buyers.”

2. Compensation Agreements. With co-broker fees removed from MLS, knowing how you’ll be paid is crucial. Different companies have different methods for disclosing compensation, and at Stagers Realty Partners, we’ve streamlined this process.

  • 2a. Compensation Agreement Between Brokers. This form specifies the fee arrangement between the listing broker and the buyer’s broker. It’s essential to have this form completed before showing a property or writing an offer to ensure you’re aware of the compensation agreement.
  • 2b. Addendum Regarding Broker’s Fees. Once an offer is made, you must attach this addendum to the contract. It details how both the buyer’s agent and the seller’s agent will be paid. Both parties must sign this one-page form, making it part of the contract and informing the title company of the payment structure.
  • 2c. Compensation Agreement Between Broker and Owner. If the listing broker isn’t paying a co-broker fee, you’ll need this form to negotiate payment directly from the property owner. This agreement, along with the addendum regarding broker’s fees, ensures that the title company knows how you’ll be compensated, whether by the listing broker or the property owner.

It’s essential to familiarize yourself with these forms and have clear conversations with your clients about the importance of signing a buyer’s agreement. This ensures that everyone understands the relationship and compensation structure before any property showings.

At Stagers Realty Partners, we’ve made it easy for you to find all the necessary forms on our website under the properties section. Just click on the “Compensation Agreements” link to access everything you need. We hope this overview has cleared up some of the confusion. Stay tuned for part two, where we’ll dive deeper into these topics and answer more of your questions. Feel free to contact me anytime—I’m here to help.