Understanding Buyer Agreements: What Every Homebuyer Needs to Know About the New Requirements

As of August 17, 2024, new real estate regulations require homebuyers to sign a Buyer Agreement before working with an agent. Many buyers are still unaware of these changes and may feel hesitant about signing. However, this agreement is now a legal requirement and plays a crucial role in ensuring transparency and professional representation in your home search.

If an agent does not require you to sign a Buyer Agreement, consider it a red flag! Professional, ethical agents will follow the law and explain your options clearly. Let's break down the different types of Buyer Agreements you may encounter so you can confidently navigate the home-buying process.

Buyer agreements establish a transparent business relationship between agents and buyers

Why Buyer Agreements Matter

Before diving into the types of Buyer Agreements, let’s talk about why they exist.

• Clarifies Responsibilities – The agreement outlines what services your agent will provide and what they expect in return.

• Ensures Professional Representation – It guarantees that you have an agent legally committed to acting in your best interest.

• Defines Compensation – While many buyers assume the seller always pays the agent’s commission, this agreement ensures transparency in case the buyer has to cover some or all of it.

• Protects Both Parties – It sets clear expectations, reducing misunderstandings and potential disputes.

Now, let's look at the three types of Buyer Agreements you may be asked to sign.

1. The Showing Agreement

A Showing Agreement is the most basic form of a Buyer Agreement. It is specific to a particular property or a group of properties you are touring on a given day.

• Best for: Buyers who are early in the process and not yet committed to a single agent.

• What it covers: If you decide to purchase one of the properties included in the agreement, your agent is entitled to a commission.

• What it doesn’t cover: Any future home tours outside of the listed properties.

This agreement is often used when buyers request to see homes with an agent but aren’t yet ready to sign a long-term commitment.

2. The Property Pre-Touring Agreement

A Property Pre-Touring Agreement applies to any home you view with an agent. Unlike the Showing Agreement, it is not limited to just a few homes but covers all properties you see with that agent.

• Best for: Buyers who are working more closely with an agent but still want flexibility.

• What it covers: If you purchase any home that your agent shows you, they are legally owed a commission.

• Important clause: If the seller does not offer to pay the agent’s commission, the buyer may need to cover it themselves. However, this is always disclosed upfront.

This agreement ensures that if an agent invests time and effort in helping you find a home, they will be compensated fairly for their work.

3. The Exclusive Buyer Broker Agreement

This is the most comprehensive agreement and provides full commitment between the buyer and the agent.

• Best for: Buyers who are serious about purchasing and want dedicated, long-term representation.

• What it covers: All homes in a broader geographic area for a specified period (e.g., three to six months).

• Exclusive relationship: You agree to work only with that agent during the term of the contract.

This agreement benefits both parties—buyers receive dedicated service, and agents can confidently invest time and resources in helping them find the right home.

What Buyers Need to Know Before Signing

Now that Buyer Agreements are required, you should go into the process prepared and informed.

Here’s what to keep in mind:

✅ Read the Agreement Carefully – Understand the terms, duration, and obligations before signing.

✅ Ask Questions – A good agent will gladly explain the agreement and address any concerns.

✅ Negotiate Terms – Some agreements allow flexibility in duration and geographic coverage.

✅ Know Your Rights – You should understand how to terminate an agreement if needed.

✅ Understand Compensation – Discuss whether the seller is expected to cover the commission or if you might need to negotiate or pay it yourself.

Final Thoughts: Why This Matters for You

The new Buyer Agreement requirement is designed to protect both buyers and agents, creating a more professional and transparent home-buying experience. If an agent does not require you to sign an agreement, it could indicate a lack of professionalism—or even a willingness to bend the rules.

A great agent will educate you on your options and make sure you feel comfortable with your decision. If you have any questions about Buyer Agreements or are ready to start your home search in Tampa, Florida, I’m here to help!