New Compensation Addenda to the FAR/BAR Contract
BUYER AGREEMENT REQUIREMENTS
Per the NAR Settlement Agreement Buyer Agreement must have
Specific amount of compensation to be paid to the Buyer's Broker for services - this includes maximum compensation from all sources
If you intend to receive compensation the amount can not be 0
You can not collect more compensation from any source that exceeds what the Buyer has agreed to on the Buyer Agreement
You can not collect Compensation from a listing agreement that is specifically designated for a Buyer Representative if you do not have a Buyer Agreement with the Buyer bringing the offer
Two New Addenda to the FAR / BAR that create contract contingencies
FF Credit Related to Buyer’s Broker Compensation
Deals with Credit to Buyer for Buyer’s Broker Compensation
Buyer has entered into a separate brokerage agreement (not incorporated herein for reference – different parties) with BROKER NAME
At closing Seller agrees to credit buyer the sum described below which for disclosure purposes only the parties agree is related to Buyer’s obligation under the BBA to pay all or a portion of Buyer Broker’s compensation.
In the event that the credit exceeds the amount allowed by Buyer’s Lender, the parties specify what happens to the excess
1. Balance to buyer’s broker
2. Credit reduced to the maximum allowed by the lender
This form does NOT AMEND the BBA and your are not required to send BBA to sellers broker or seller
GG Seller’s Agreement with respect to Buyer Broker’s Compensation
Seller or Listing Broker decides to offer compensation within the listing agreement
This contract is contingent upon a fully executed Compensation agreement (either Broker to Broker or Seller to Broker) within x days. If it is not executed the buyer can cancel the agreement.
What about ethics and asking for compensation?
Buyer must ask for FF and GG – not a request from the Buyer’s Broker – it is their request to fulfill the obligation to pay the Buyer's Broker via the BBA.
REALTORS can not delay or withhold offer when attempting to negotiate compensation. In this situation this is a DECISION OF THE BUYER
Logistics
Add FF or GG in Other Addenda in the sales contract. Be sure to check it in Other and Write the Addendum information so that it is officially a part of the contract.
COMING SOON
CONDO Disclosures Update
FLOOD Disclosures – October 1, 2024
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