Buyer Brokerage Services Agreement
By Jim Palmer Jr.

Times have changed for buyers in the real estate industry!  Gone are the days when buyers could get any broker to jump and run to show them properties on a whim and without any real obligation to one particular broker. 

Landmark changes to the Washington Agency Law were codified this past January that significantly changes how brokers must engage with buyers.

Brokers are now forbidden by statute to provide any real estate services to any consumer without first having a signed Brokerage Services Agreement in place.  That means brokers cannot show a property to any buyer without first creating legal written agency.  Fragile unwritten agency relationships that were routinely abandoned by buyers in the past, must now be bolstered by formal written agreements.  

Even though the new standard Buyer Brokerage Services Agreement used by brokers state wide allows for Non-exclusive Agency as one of the options, experienced buyer brokers will likely opt to engage only with buyers who choose Exclusive Agency which guarantees that the broker will get paid when any sale is consummated.

In the past, many real estate buyers have been reluctant to obligate their loyalty to any one real estate agent.  One reason may be that they have had the listing information available at their fingertips and didn’t see the need to commit to one agent.  Under the new rules, brokers can offer access to MLS listings to buyers by creating automated email criteria and sending emails for available listings, but must create a Services Agreement prior to any showings or further real estate services.   

The new rules and new forms offer clarity for buyers in terms of disclosure of who pays the broker compensation and clarifies that buyers have options for negotiating lower commission rates with their broker.  That option was always available for buyers, but is now made more apparent to consumers by the new agreement form, which was the goal of legislators.

Sellers have traditionally always engaged brokerage services by a written listing agreement, but now Washington law makers have copied Idaho agency law which requires brokers to do the same with buyers.   Listing agreements between sellers and brokers have also been modified to create clarity for consumers by giving sellers and buyers a more clear understanding of their options for offering compensation to brokers.
Sellers can still choose to provide incentive to buyers, by offering a full compensation to buyer’s brokers, or sellers can opt to allow buyers to pay their own broker,and/or allow buyers to negotiate their broker’s compensation.