The New Standard: Written Buyer Agreements

If you are planning to buy a home in Greater Boston, the rules of the game have changed. As of August 17, 2024, written buyer agreements are a nationwide requirement. Before you step foot in a property for a tour, you’ll need to have a formal agreement with your Realtor®.

Why it matters: This isn’t just paperwork—it’s a roadmap for your partnership. It defines exactly what your agent will do for you and exactly how they will be compensated.

The Big Picture 🖼️

Written agreements ensure transparency. They eliminate “guessing” about fees or services, allowing you to focus on finding the right home in the competitive suburban or city markets.

What You Need to Know:

• It’s Negotiable: Everything in the agreement is up for discussion—the length of the contract, the specific services provided, and the compensation rate.
• No Open Ends: Compensation must be a clearly defined dollar amount or percentage, not a vague range.
• Timing is Key: You must sign before touring a home (in-person or virtually). You do not need one just to visit an open house or chat about services.
• Who Pays? While the agreement says you are responsible for the fee, you can still negotiate for the seller to cover that cost as part of your offer.
  

  Download the NAR Guide Here

Sample of a Massachusetts Association of Realtors Buyer Broker Agreement

The  Massachusetts Association of Realtors Form 701, titled the “Exclusive Buyer Agency Agreement,” establishes a formal, legally binding relationship between a prospective homebuyer and a real estate brokerage.

Under this contract, the broker commits to using “reasonable efforts” to locate and negotiate for property on the buyer’s behalf, while the buyer agrees to work exclusively with that broker for a specified duration. A critical component of the agreement is Section 4, which details Broker’s Compensation, emphasizing that fees are not fixed by law and are fully negotiable; it outlines options for service fees, hourly rates, or success-based commissions.

Furthermore, the document protects the broker’s interests through a “protection period” and a requirement that the buyer refer all property inquiries to them, while simultaneously clarifying that the broker is not an inspector or attorney and that the buyer maintains a duty of personal due diligence regarding property conditions.

Download MAR Exclusive Buyer Agency Agreement Form # 701

 

The Bottom Line 📉

These agreements protect you. They ensure you are working with a professional who is ethically bound to put your interests first. Don’t view it as a hurdle—view it as security.

You can read the full question and answer (FAQ) on the National Association of Realtors web site here

Have questions about how this works in Norfolk or Suffolk County? Reach out to me directly. I’m here to simplify the process and get you into your next home.

Michael Mahoney
617-615-9435
Mike@Mmahoney.com

---