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Written Tenant Broker Agreements are Required
Starting 8/17/24 MLS participant Realtors® and National Association of Realtors (NAR®) members must abide by new rules in order to maintain membership in those organizations. Realtors® who are working with a tenant must have a written tenant brokerage agreement before showing any property to a potential tenant (in-person or virtual.) This also applies to tenants looking for rentals. It’s the law in Illinois.
There have been procedural changes to how we do business, but the end result is pretty much “business as usual.” That is, most buyers are going to be financing their broker commissions by paying more for the properties than they would have if no broker was involved.
What is a Buyer Broker Agreement?
Buyer brokerage agreements identify exactly what services a Broker will provide to the Buyer, along with how the agent will be compensated. It also ensures transparency and helps Buyers understand their financial responsibilities. The point is, any buyer wanting to use a Realtor® to buy or lease a property must have a signed contract with that Realtor®. There are some important FAQs related to this.
Buyer FAQs:
Q: How will I pay my Broker when I need all my money for the down payment?
A: Sellers are aware that Buyers are concerned about their financial obligations which includes earnest money, the down payment, the closing costs and now – paying their Realtor. That’s why most Sellers are willing to pay the Buyer Broker fees (and sometimes even closing costs) as part of the overall purchase price.
Q: How will Realstar help me with my Broker obligation?
A: We will make every effort to collect the compensation of the Buyer Brokerage fee from the Seller. This starts during offer negotiations via the addendum Seller Agreement to Pay Buyer’s Broker Compensation. This document becomes part of the final sales contract – there for everyone to see.
Q: Are there other Buyer Broker fees I have to pay?
A. Not when you choose Realstar. We don’t charge a retainer fee like other Brokers. We don’t add on junk fees like other Brokers. We only get paid upon a successful purchase and closing, and we only get paid the one agreed upon fee. Your lender will talk to you about loan related fees and other closing costs.
Q: The Seller agreed to pay my agent, can I still get some closing cost help?
A. Yes. We have seen sellers pay Buyer’s broker commission and thousands more to help offset overall buyer costs. Of course, the total amount a seller is willing to cover is dependent on the final sales price. Discuss options with your Realtor® and your lender.
Realtors® remain committed to being the trusted advisor to homebuyers and provide their expertise to guide them in navigating the complex path to the largest and most significant financial transaction in their lives. More information can be found at facts.realtor