What’s a Buyer Service Agreement?
A Buyer Service Agreement is an agreement between the Buyer’s Firm/Agent and the Buyers in a real estate agency relationship.
The document outlines the rights and responsibilities for both parties and provides transparency about how the Buyer’s Firm/Agent is going to be compensated. In many ways, it is similar to the contract that a Seller signs outlining rights, responsibilities and compensation. That document is called a ‘listing contract.’
Over the past few years, consumers around the country have elevated the issue of commission transparency via class action lawsuits and the Buyer Service Agreement has risen up as one of the simplest ways for consumers to have clear and concise expectations around their agency relationship. At issue has been the lack of transparency around cooperative compensation. Cooperative compensation is the commission model where the Seller pays a Listing Firm/Agent and the Listing Firm/Agent shares the compensation with their “cooperating” Buyer’s Firm/Agent.
As of January 1, 2024, Washington law requires this document be in place before “or as soon as reasonably practical after…commences rendering real estate brokers services.” Oregon is reviewing similar legislation in the upcoming session and we expect to see this law approved and enacted in Oregon in the coming year.
At Think, when we hear of a way to enhance clarity, transparency and consumer protection, we don’t wait to implement it. We believe our clients deserve to be educated and empowered in their decision making and we want to have those conversations with our clients at the beginning of the agency relationship.
As always, you can count on us to stay ahead of the pack and up to the minute on the laws, rules and trends that help us deliver exceptional outcomes for you!