Understanding Buyer Brokerage Agreements in Florida
When Do You Need to Use a Buyer Brokerage Agreement (“BBA”)?
A Buyer Brokerage Agreement (BBA) is an agreement that comes into play once a licensed Real Estate Professional begins helping you as a buyer—things like showing you homes, answering questions, or guiding you through the process. You don’t need one if you’re just walking into an open house or touring a property on your own with the listing agent. But as soon as an agent starts providing professional services for you, the agreement is necessary. It’s also important to know that agents work for their brokerage, so the agreement is actually between you and the Broker who owns the brokerage (not just the individual agent).
What are some professional services that are typically included?
Helping you find specific homes
Arranging “showings” of the properties you love
Negotiating and presenting offers on your behalf
Helping you navigate the post contract process leading up to closing
Can the BBA Provide a “Percentage Range” for Commission?
No, a percentage range is NOT acceptable, the specific compensation must be written and it must be ascertainable.
Can the BBA be changed?
Yes, BBAs can be modified to reflect a different percentage of compensation to the Buyer’s Broker.
Does the seller get a copy of the BBA?
Neither the seller nor the their agent get a copy of the BBA. It is an agreement between you and the brokerage that represents you, but your Closing Agent will receive a copy to ensure that the commission is correct on the settlement statement at closing.
Examples:
If the Buyer signs a BBA stating they will pay their agent a 3% commission, but the Seller offers 2%, the Buyer must cover the difference of 1%. Alternatively, the parties can agree to amend the agreement.
A Buyer signs a BBA saying they will pay their agent a 2% commission and the Seller offers 3%, the Buyer’s Broker may only receive 2%, unless the BBA was changed to show the Buyer’s Broker may receive 3%. You cannot have a percentage range on your BBA.
The NAR rule changes that occurred in August 2024 outlines REALTORS obligations to increase transparency and protecting your interests during the process. The goal is guiding you smoothly through the process, helping avoid delays or costly surprises.
