One of the more recent National Association of REALTOR’s ® Consumer Guides focuses on buyer agreements. NAR explains that if you’re a homebuyer working with an agent who is a REALTOR®, it means you are working with a professional ethically obligated to work in your best interest. A written buyer agreement is an agreement between you and your real estate professional outlining the services they will provide you, and what they will be paid for those services.
Written buyer agreements became a nationwide requirement for many real estate professionals as a part of the National Association of REALTORS®’ proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.
In Maryland, written buyer agreements are not new. Some states, like Maryland, have required them for years, while many other states had not. Regardless, they are now a nationwide requirement for many real estate professionals.
NAR further explained that buyers can negotiate any aspect of the agreement with their real estate professional, such as the services received, the length of the agreement, and the compensation. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended or a range.
In Maryland, the buyer agreement is entitled “Exclusive Buyer/Tenant Residential Brokerage Agreement”. You will be asked to enter into this written buyer agreement before “touring” a home with them, either in-person or virtually. In addition, buyer agreements in Maryland require a specific termination clause.
While you are responsible for paying your real estate professional as outlined in the buyer broker agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or the seller’s listing brokerage.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
