One more blog post about the coming changes to the realtor environment.
Regardless of how the commission lawsuits are resolved, there will be a push – and possibly a mandate – for buyers to pay their agent directly. Agents will want buyers to sign an agreement to that effect.
Above is a copy of the verbiage on page one of the standard agreement.
If a buyer agrees and signs this form, and then finds a home on his own, he can ‘cancel this agreement by giving written notice to the other’. But only as long as THE BOXES CIRCLED IN RED AREN’T CHECKED.
Will buyers read the agreement before signing, and be reluctant to check the two boxes?
Otherwise the form is reasonable, with the agent being covered for any properties they recommend to the buyer with analysis (paragraph B1).
All that matters is whether the agent will insist on the two red-circled boxes being checked. I think a buyer will pause at agreeing to exclusive representation, but non-exclusive should be acceptable.
I doubt that I’ll use the form at all, unless Compass requires it. Why bother if you can cancel any time?
Happy Thanksgiving!
