NAR FIELD GUIDE 2.0
CONFIDENTIAL – FOR INTERNAL USE ONLY
The Buyer Broker Agreement
Using the Raveis Buyer Broker Agreement
• Compensation MUST include a specific X% for Buyer Broker Compensation; Ranges of compensation are not allowed
• Must be signed when working with a Buyer prior to touring any residential properties
• Must have a beginning and an end date (term of agreement)
• You can sign these, as long as it meets our requested compensation guidelines and there are no changes to the Terms (cross-outs etc.)
• You can change compensation amounts using the Raveis Amendment form – The Amendment must be signed by Manager
Remember you need to submit ALL Buyer Broker Agreements into Appfiles as you would a Listing Agreement by placing in Ready BBA Review status
Raveis Buyer Broker Agreement
• Must be signed when working with a Buyer prior to touring any residential properties (between 1-4 units)
• Not needed for Rental or Commercial transactions
• A Buyer calls you about YOUR Listing (or any Raveis listing) , you don’t need to have this signed (at that point); You are simply working for the Seller and showing the property as an Associate of Raveis
• If, while at the showing, or after, the Buyer wants to make an offer and work with you, you then need to have the Buyer sign the BBA as you transition into a working relationship
• You are hosting a RAVEIS Open House and a customer walks in to see the home, you don’t need to have a BBA signed (at that point) –show the property, business as usual
• If, while at the RAVEIS Open House, or after, the Buyer wants to make an offer and work with you, you then need to have the Buyer sign the BBA as you transition into a working relationship
Unrepresented Buyers
• Any Buyer that doesn’t want representation, even after you explain the benefits of working with you, and wants to make an offer on your listing will need to sign a No Brokerage Relationship Disclosure
• Whenever you are performing services for a Buyer who wants to be unrepresented you must have them sign this Disclosure as your duties are limited and this must be disclosed to the Buyer, required by FL law.
Using the Amendment to Buyer Broker Agreement
• You can change the BBA compensation amount, Protection Period, Termination Date, and “Other” using this Raveis Amendment form
• Example; If you have the BBA signed for 2.5% and a Seller is offering 3%, you can ask your Buyer to amend your agreement to 3%
• Likewise, you can amend the original amount downwards to fit the situation
• Only your SM can sign this form if you are changing the BBC during a transaction
COMPENSATION AGREEMENT
Compensation Agreement - LISTING
• A Compensation Agreement has been created to replace the MLS offer of compensation.
• All Sales Associates are required to use the Compensation Agreement to confirm the amount of BBC your Seller is offering the BBA (per the Listing Agreement).
• Written confirmation using the Compensation Agreement should be made available to co-brokers when they ask. You can sign these.
• We strongly recommend using the FAR agreement - “Compensation Agreement – Seller’s Broker to Buyer’s Broker” when you confirm the BBC your Seller is offering to co-brokers.
• Verbal, Text, and Email communications to co-brokers about BBC are allowed but are NOT binding.
• Make sure the BBC you enter on the Compensation Agreement matches your Listing Agreement.
• Some of the older FAR Listing Agreements and NABOR Listing Contracts list BBC by the type of brokerage relationship (Transaction, Single Associate, No Brokerage Relationship) - Make sure you check your Listing Agreement to be sure the offer of compensation extended to a Buyer Broker is consistent with your Listing Agreement.
Compensation Agreement - BUYER
• Verbal, Text, and Email communications to a Listing associate about BBC are allowed but are NOT binding. Written confirmation using the Compensation Agreement should be obtained before your Buyer submits a written offer.
• We strongly recommend using the FAR agreement - “Compensation Agreement – Seller’s Broker to Buyer’s Broker” when confirming the BBC being offered by the Seller (See page 18). Note that it is optional to include your Buyers names on this form.
• Naples only: As a Buyer Broker, you may also accept the NABOR Broker Compensation Agreement - Listing Broker to Buyer’s Broker but you MUST be sure the names of your Buyer(s) are inserted.
• The amount being confirmed must match the Compensation on your BBA. You can’t accept more than what’s agreed to in writing with your Buyer.
Not all Brokerages follow our model. Some Brokerages will not provide a Compensation Agreement. They will ask that your Buyer includes a request for a Seller Concession for BBC along with the Purchase and Sale Agreement - This is their right.
In these instances, your Buyer should include the new Concession Rider/Addendum requesting a credit for BBC (see slide 19).
We ask that you DO NOT write Concession language on your Buyer’s offer since we now have a board form for this.
We DO NOT recommend using the new Compensation Rider/Addendum as this creates an unwanted contingency
CONCESSIONS & COMPENSATION
Compensation Vs Concessions
• Concessions enable Sellers to indicate that they are willing to provide something of monetary value to a Buyer – This is called a Seller Concession (Credit)
• Seller Concessions (Credits) are not to be confused with Co-broke Compensation (Commission)
1. Compensation is earned and paid to a Co-broke by the Buyer (Buyer Broker Commission) or, if included in a Listing Agreement, paid by Seller to the Listing Broker, and shared with the Buyer’s Broker
2. Concessions are offered from a Seller to a Buyer and are inclusive of monetary Credits that may be used for a variety of purposes (i.e.. Appraisal Fees, Closing Costs, HOA Fees, Condo Fees, Special Assessments etc.)
• The mention of a Seller Concession and/or the existence of concession fields in an MLS are determined by the individual MLS, and NOT ALL MLSs allow the same practices – make sure you know what your MLS permits
• If your MLS permits Concessions, they can’t be limited to, or conditioned on, payment of the Buyer Brokerage Compensation
• Certain MLSs include a drop-down menu for specific types of concessions; These fields are optional – consult with your Seller
• Certain MLSs allow wording for Concessions to state “Seller is offering Concessions for Closing Costs” (Buyers can use this to pay your BBC)
Compensation & Concessions
• When assisting Buyers, you should confirm the offer of BBC PRIOR to your Buyer making an offer; Use the FAR form - Seller’s Broker to Buyer’s Broker Compensation Agreement
• In the absence of receiving a signed Compensation Agreement between Brokerages due to any of the scenarios below, or if the BBC is LESS than the compensation due from your Buyer in the BBA, your Buyer MUST negotiate a Seller Concession or request Seller to pay your BBC or be responsible for paying the agreed upon BBC.
1. Listing Brokerage (Seller) is not offering BBC
2. Listing Brokerage will not sign a Compensation Agreement (Example - eXp)
3. Your Buyer pushes you to submit the offer prior to you getting written confirmation of the Seller’s offer of BBC
Recommended - Negotiating a Concession (Seller Credit to Buyer):
• Your Buyer will need to include a Concession Rider (FAR) or Addendum (NABOR) along with your Buyer's written offer.
Negotiating Compensation (Seller's Broker to Buyer's Broker):
• Your Buyer will need to include a Compensation Rider (FAR) or Addendum (NABOR) along with your Buyer's written offer.
APPFILES & RESOURCES
NAR Settlement for Customers - Optional
National Association of Realtors Settlement (“NAR Settlement”) 8/16/24
• This is a brief overview of the NAR Settlement changes so that your Sellers AND Buyers can understand the recent changes
• We recommend leveraging this form when you are establishing rapport with new customers and to accompany the introduction of the BBA
Listing Forms
FAR – Listing Agreements
Exclusive Right of Sale Listing Agreement (2024 Florida Realtors)
• Line 145 (a) is encouraged and keeps BBC between Brokers, consult with your Seller
Vacant Land Listing Agreement (2024 Florida Realtors)
• Ensure lines 140 through142 are discussed with Seller to cover all Buyer Broker types
NAPLES– Listing Agreements
Listing of Residential Improved Property Exclusive Right and Authority to Sell Contract (NABOR 7/12/24)
• Ensure line 147 is discussed with Seller to cover all types of Buyer Brokers
Listing of Residential Vacant Land Exclusive Right and Authority to Sell Contract (NABOR 8/2/24)
• Ensure line 119 is addressed with Seller to cover all types of Buyer Brokers
Buyer Forms (All Florida)
William Raveis Forms – Buyer Agreement
Exclusive Buyer Brokerage Agreement (8/12/24)
• Section V (Broker’s Compensation) – (E) This election box is expressly for “Seller Concessions” and not BBC. Sellers can still offer to pay BBC even if they are not communicating the Seller’s offering of a Concession(s)
• You are allowed to sign these forms as long as they fall within our requested compensation guidelines and are free of mark-ups or cross-outs
Amendment to Exclusive Buyer Brokerage Agreement (8/12/24)
• Use this form to change any terms of the original BBA, including the BBC
• Any BBC changes made to an existing BBA will require Sales Manager sign -off
No Brokerage Relationship Forms
FAR Brokerage Relationship Forms
No Brokerage Relationship Disclosure (FAR 7/6/2006)
Naples Brokerage Forms
Brokerage Relationship Disclosure Form Notice of No Brokerage Relationship (NABOR 7/15/2024)
Florida law mandates these forms be signed by any customer who requests to have No Brokerage Relationship
Broker Compensation Agreements
FAR Compensation Agreements
Compensation Agreement – Seller's Broker to Buyer's Broker (FAR CABB-1 8/20/24)
• Prior FAR Exclusive Right of Sale Listing Agreements allowed your Seller to offer variable compensation amounts by Buyer Brokerage Relationship type –Language added in “Other Terms” is a reminder to ensure the compensation you’re are confirming matches the compensation in the FAR Listing Agreement
• Initial the Arbitration fields (#6), initial the bottom of each page, and sign at the end of the form of Page 2.
(We do not recommend the use of the NABOR
form)
Compensation Addenda
FAR/BAR Residential Sales Addenda
Comprehensive Rider to the Residential Contract For Sale And Purchase (GG- FAR 2024)
• NOT recommended, but if used, we recommend checking the box for Seller’s Broker and Buyer’s Broker, keeping commissions between brokers . This form creates a contingency requiring a separate Compensation Agreement be executed.
Naples – Sales Contract Addenda
Addendum to Sales Contract Compensation (NABOR 2024)
• NOT recommended, but if used, check the box for Listing Broker to Pay Buyer’s Broker, keeping commissions between brokers
Make sure to check the box in the Sales Agreement to incorporate the addenda or rider into the Sales Agreement
Concession Addenda
FAR/BAR Residential Sales Addenda
Comprehensive Rider to the Residential Contract For Sale And Purchase (FF- FAR 2024)
• We recommend checking the box The Balance of the credit will be paid by Seller directly to Buyer Broker
Naples – Sales Contract Addenda
Addendum to Sales Contract Concessions (NABOR 2024)
• We recommend checking the box for credit Towards Buyer’s Broker’s Compensation
Make sure to check the box in the Sales Agreement to incorporate the addenda or rider into the Sales Agreement
• Great news, Raveis.com will display BBC for all Raveis listings (next to MLS #)
• At this time, NABOR, Marco Island & Beaches MLS allows for language directing buyer brokers to a URL in the Confidential Remarks section
• We recommend you use language that directs them to your personal or team profile page on Raveis.com
• Example: “For more details on this listing please visit –johndoe.raveis.com”
BBC Display on Raveis.com
Buyer Broker Compensation will be displayed on Raveis.com for Raveis Listings only
• Your Raveis “RTC” will enter Buyer Broker Compensation into ROMIO (once the listing is activated in MLS) AND they have a signed BBA in Appfiles; ROMIO will feed the display of BBC on Raveis.com (see diagram next page)
• Check to see that the Buyer Broker Compensation displayed on Raveis.com (for each of your listings) is correct
• If your listing is in MLS, and your Seller does not approve of having the offer of a Buyer Broker Compensation displayed on Raveis.com , request an email
• Note there is a disclaimer after each display of Buyer Broker Compensation on the Raveis website that states “Buyer Broker Compensation is for display purposes only and must be confirmed in writing directly from the Listing Broker”
We hope you find this resource helpful, but if you have any questions after reviewing it, we strongly encourage you to contact your Sales Manager