The Buyer Brokerage Agreement, Explained (And Why You Should Feel Good Signing It)

If you are getting ready to tour homes in Las Vegas, there is one piece of paper that comes first. It is called the Buyer Brokerage Representation Agreement, and it is now required nationally before an agent can walk you through a property.

I know how it feels to be handed a contract before you have seen a single house. So let me do the opposite of what most agents do. Instead of sliding it across the table and pointing at the signature line, I am going to show you the entire form, section by section, and tell you exactly what to look at.

Here is the cover sheet I hand every buyer before we start.

Cover sheet only. The three pages that follow it are the Greater Las Vegas Association of REALTORS standard form, unaltered.

First, the most important thing to know

The form is not mine. It is the GLVAR standard agreement, revised 10.24, used across the valley. Nothing in it has been edited, added, or removed. If you compare my copy to the one another agent hands you, the language will be identical.

What changes from agent to agent is what gets written into the blanks. That is the part worth your attention, and that is the part that is negotiable.

Page 1: what we are looking for, for how long, and what it costs

The box at the top: Exclusive or Non Exclusive

You choose. Exclusive means you are working with me and not with another agent. Non Exclusive means you are not locked in. Both boxes are on the form because both are legitimate options.

Section 1: Properties

This defines the scope. We check the property types (residential, investment, commercial, vacant land, custom build, new home) and we write in the cities and geographic area. For most of my clients that means Las Vegas and Henderson, and often a specific list of guard gated communities.

There is also a second option further down page 1: we can skip the broad geographic area entirely and name specific addresses. If you want to see one home before you commit to anything broader, we do that. It is built into the form.

Section 2: Length of Agreement

A start date and an end date, written in by us. The agreement runs until that date at 11:59 p.m., or until a transaction closes, whichever comes later.

There is no rule that says this has to be six months or a year. If you want a short term while we get to know each other, say so. I would rather earn month two than trap you in it.

Section 3: Buyer Broker Compensation

Read the language in this section carefully, because it says something important in plain type: the Broker Fee is not set by law or by any REALTOR association and is fully negotiable.

The fee can be written three ways, and the form lets us check whichever applies:

1. A percentage of the gross purchase price
2. A flat dollar amount
3. A dollar amount applied toward something specific

Two more things live in this section. The fee is due at closing, not upfront. And there is a blank for the number of days the agreement survives after it ends. If you go under contract on a home I personally showed you within that window, the fee is still owed. That number is a blank on the form. We fill it in together.

Page 2: who pays, what I do, and what you agree to

Section 4: Collecting the fee from the seller

This is the section most buyers do not know exists. You may ask the seller to pay my fee, in whole or in part, either as a credit to you at closing or paid directly to me. At your instruction, I write that into your offer and I negotiate it with the seller.

The form also says I will not keep any amount from any source that exceeds what we agreed to in Section 3. If the seller offers more than our agreed number, the extra does not come to me.

Section 5: Disclosures

Two honest acknowledgements. First, there are situations where a brokerage ends up representing both sides, and if that comes up I have to get your written consent on a separate Consent to Act form. Second, I may represent other buyers who are looking at similar homes. In a market of roughly seventy guard gated communities, that is simply true, and the form says it out loud.

Section 6: What I actually owe you

This is my side of the deal, in writing: locate and present suitable properties, tour and prepare detailed analysis on the ones you care about, help you prepare and negotiate a contract, cooperate with the seller side, and perform other services as you need them.

Section 7: Your side of the deal

Work exclusively with me unless page 1 says otherwise. Furnish the documents that make you a credible buyer, like a pre approval letter and proof of funds. Be reachable. Act in good faith.

One item here catches people off guard, so I want you to see it before you sign it. Section 7e, new homes and lot sales.Many new home builders, open houses, and for sale by owner sellers will not compensate a broker unless the broker is with you on your first visit. If you walk into a builder sales office alone, you may owe the fee yourself. Bring me on the first visit and this never becomes an issue.

Section 8: For best experience

Read this one closely. It says do not sign more than one buyer broker agreement covering overlapping time, because that can expose you to paying two fees. There is also a blank asking how many active non exclusive agreements you are already party to. If you are working with another agent, tell me. It goes on the form and it protects you.

Sections 9 and 10: Fair housing and wire fraud

Section 9 is the equal housing opportunity policy. Section 10 is the wire transfer warning, and it matters more than most buyers realize. Real estate wire fraud is sophisticated and it targets exactly this kind of transaction. My brokerage will never send you wire instructions by email. If you ever receive instructions that appear to be from me, call me at the number you already have and verify before you move a dollar.

Page 3: the exit ramp

Section 13: Additional Terms

Blank lines. Anything we agree to that is not already covered goes here. A shorter term, a narrower area, a specific fee arrangement, a trial period. This is where a good agreement gets tailored to you.

Section 14: Cancellation

Here is the sentence I want every buyer to read before they worry about signing:

Either party may cancel this agreement, effective upon delivery of written notice to the other party, unless Buyer is under contract to purchase the Property.

Either party. Written notice. Effective on delivery. The only time you cannot walk away is when you are already under contract on a home, which is exactly when you would not want to.

That is the whole answer to the fear. This is not a cage. It is a working arrangement with a door in it.

So why sign it before seeing homes?

Three reasons.

It is required. No agent can tour you through a property without it. Anyone who offers to skip it is not doing you a favor.

It makes my obligations enforceable. Before this form existed, a buyer agent's duties were mostly a handshake. Now Section 6 is written down and I am accountable to it.

It puts the money conversation first instead of last. You will know my fee, who might pay it, and how it works before you fall in love with a house. That is a much better order of operations than finding out at the closing table.

How I like to do it

I do not ask for a long exclusive commitment from someone I met yesterday. Here is what I usually suggest:

• Just curious? We name specific addresses in Section 1 and keep it to those homes.
• Ready to look seriously? We write a short term in Section 2, define the communities you actually care about, and revisit when it expires.
• Ready to buy? We go full scope, and I go to work.

Bring your questions before you initial. Nothing on that page is a formality, and cancellation is far simpler in week two than in escrow.

Jennifer Franco Broker Salesperson, The Nonnie Group Guard Gated Specialist,

Las Vegas Native Nevada License BS.0146613 702 848 HOME

jfranco@nonniegroup.com guardgatedhomes.com

This article explains a standard association form for general information. It is not legal advice. For advice on your specific situation, consult a Nevada attorney.