Locking It Down: The Scoop on Buyer Representation Agreements

You’ve been grinding, showing homes, setting up deals, and holding buyers’ hands through every step of the process—but without a Buyer Representation Agreement (BRA), you're technically doing it all for free. It’s your safety net. Not only does it lock in your commission, but it’s now a requirement if you’re a member of the National Association of Realtors (NAR). So, let’s talk about what that means for you and why it’s more important than ever to get this signed upfront.

What Is a Buyer Representation Agreement?

At its core, a BRA is your contract with a buyer that formalizes your relationship. It’s the buyer’s promise to work with you exclusively—and your assurance that you’ll get paid when they buy a home. Without it, you’re vulnerable to a buyer bailing on you or closing with another agent after all your hard work. This agreement legally protects both sides and makes sure that everyone is clear about what’s expected.

What’s the Big Deal with the NAR Requirement?

Here’s where things get official: In 2024, NAR updated its rules to require agents to have a signed BRA (or similar written agreement) before showing property to a buyer. It’s no longer optional or just a “best practice”—it’s mandatory. This is part of their push for more transparency and professionalism in the industry. As a result, every time you work with a buyer, you’ve got to get this agreement signed. No exceptions.

What does that entail?

1. Written Agreement: You now need something in writing that spells out your relationship with the buyer—verbal agreements don’t cut it anymore.

2. Compensation Transparency: The agreement should clearly outline how you’ll be compensated. Typically, the seller pays the buyer’s agent commission, but if that’s not enough, your agreement must specify how the shortfall is handled.

Why Do You Need a BRA?

Let’s be real: the real estate game is competitive, and buyers aren’t always loyal. A BRA locks in your client and ensures you get paid for your time and expertise. Without it, the buyer could jump ship at the last minute, and all those hours spent could go to waste. Now, with NAR making it a requirement, you’ve got another reason: compliance. No BRA, no showings. Period.

What Does a Buyer Representation Agreement Include?

• Scope of Services: Specifies what type of properties you're helping the buyer find (single-family homes, condos, investment properties, etc.).

• Compensation: Typically a percentage of the purchase price. The agreement clarifies how you'll get paid, whether it's directly from the seller or if there’s a gap that the buyer will need to fill.

• Term Length: How long the agreement lasts—usually tied to a specific time frame or transaction.

• Responsibilities: Outlines both your duties and the buyer’s. For example, how often you'll communicate, and the buyer’s duty to inform you about any properties they’re interested in.

The Benefits of the New NAR Rule

Here’s why the NAR mandate is actually a good thing for you:

1. Protects Your Commission: The agreement locks in your role as the agent, ensuring you get paid for the work you put in.

2. Sets Expectations: The buyer knows exactly what to expect from you—and what you expect from them in return.

3. Streamlines the Process: Buyers are more likely to stay committed, which means less chasing and more closing.

4. Compliance Is Key: You're legally covered and compliant with NAR's new guidelines, so no risk of being caught without a proper agreement in place.

When Should You Introduce It?

Ideally, you should introduce the BRA as soon as you start working with a buyer—especially if they’re serious. You don’t have to bring it up in the first conversation, but definitely after a couple of showings. Let the buyer know that this agreement is as much for their benefit as it is for yours—it shows you're committed to them and vice versa.

In the fast-paced world of real estate, getting a Buyer Representation Agreement isn’t just about locking in your commission—it’s about doing business the right way. Thanks to NAR, it’s now required, so there’s no skipping this step. Get it signed, lock down that client, and ensure you get paid for every bit of value you bring to the table. Let’s face it, your hustle deserves it!

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