As previously cautioned (March 14 article “Is exclusive buyer broker agreement right For everyone?“), the conversation surrounding the newly mandated Buyer Broker Agreement was to be continued. Welcome back. As those with more experience and age typically pay closer attention to the finer details of a contract and possess a deeper understanding of the binding implications of a contract, it is less of a concern. It is for those who do not have this experience that my concern is heightened.

In Utah, the Exclusive Buyer Broker Agreement has been in place since 1996. In 2004, it became a required form as part of a real estate transaction. This was part of efforts to formalize the broker-client relationship and to ensure that buyers’ interests are properly protected throughout the process. In 2024, it became compulsory for all Realtors to have this form signed and in place prior to showing a property. As a result, it is imperative that the form is completely understood by the person signing it. It has the potential to lock someone into a relationship with an agent that may not be the right fit.

This contract includes the details of the duration of the agreement and the compensation structure as well as other obligations the buyer and broker have to one another. While the goal is well intended, to clarify the expectations of both parties from the start, it should be understood that the details of this agreement are all negotiable.

The duration of the agreement specifies the time frame the contract covers. If this is the first time ever meeting with the agent, this should be limited. It can even be for one day or even a specified hour of the day. The contract also has the option of specifying a certain address. It is a good idea, again, if meeting an agent for the first time, to specify only the specific address or addresses of the homes that are being shown that day. On the other hand, if you are already familiar with the agent and feel comfortable committing to a longer-term relationship, it would be perfectly acceptable to agree on a longer time period for the agreement.

The compensation portion of the contract lays out how the agent will be paid. The amount or percentage that is written in the contract is the MAXIMUM amount the agent will be paid. It is important to understand that this amount is negotiable.

As Realtors, we have every obligation to explain every detail of what our clients are signing. While this contract was created with good intentions for both buyer and broker (agent), it also has the potential to lock a buyer into an unwanted relationship. This is not only awkward for everyone, but counterproductive. It could potentially lead to frustration, lack of trust and an overall negative experience for both parties. For my loyal readers with connections to the young ‘uns, we’ve got some preaching to do.

Jen Fischer is an associate broker and Realtor. She can be reached at 801-645-2134 or jen@jen-fischer.com.