Who pays the buyer's agent commission in Florida?

Who pays the buyer's agent commission in Florida?

Who pays the buyer's agent commission in Florida? There is a lot of talk and concerns about how the NAR settlement is going to change the way buyers’ agency works and that the seller side does not have to pay the buyer’s broker anymore.

The fact is that there will be forms and disclosure changes. Part of the settlement is that the co-broke percentage that has been in place forever will be removed from the MLS.

That doesn’t means’ that a seller cannot offer a buyer’s broker commission anymore – it is just not allowed anymore to be displayed on the MLS. In realty the buyer’s broker commission is not going away, it is just not displayed on the MLS anymore.

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What are your options?

Option 1: The seller can offer a buyer’s bonus and the buyer can decide to pay the buyer’s broker with the buyer’s bonus.

Option 2:  The buyer’s broker can contact the listing broker and asked if the seller is   offering a buyer’s broker commission. In the event that the seller side is not paying any commission to the buyer’s broker, the buyer has to pay the buyer’s broker commission. If the seller side decides to pay the buyer’s broker a commission, the seller’s broker and the buyers broker sign an agreement and the buyer has “not” to pay the buyer’s broker commission.    

Option 3: Steering a homebuyer away from a property where the seller’s side denies the buyers’ broker a commission is not an option for a buyer’s agent and buyer’s broker, it would be a violation. In this case it is the buyer’s sole discretion and right not to proceed and to pass on the property or to move forward with the purchase and pays the buyer’s agent/broker at closing.

Option 4: Contacting the seller’s agent directly doesn’t guarantees’ that the buyer doesn’t has to pay any commission. If the seller’s side is not willing to pay a buyer’s brokers commission, then the buyer has to pay the seller’s broker a buyer’s broker commission, who is now acting as transaction broker representing both sides.

In any event as of August 17^th 2024, all real estate agents and brokers will be required by law to have a signed EBBA agreement (Exclusive Buyers Broker Agreement) signed before showing any property to potential homebuyers – no exemptions. Until today a buyer’s broker agreement was not mandatory, it was an agent’s/broker’s choice – This will change as of August 17^th 2024 when it will be mandatory for all agents and broker.

How it will play out?

Currently the participating Realtor Board’s are still working on the required forms and disclosures and we don’t have all the answers yet. But we believe that once the dust settles, it will all play back. Keep in mind through-out real estate history we always had a certain percentage of home seller's who choose to sell their home without a real estate agent. In reality the “For Sale By Owner” Listings are not getting the same exposure and it lacks the required disclosure forms that protect a home buyer. At the end all depends on demand & supply and how much is a buyer willing and or able to pay for his or her real estate dream and how financial institutions are able to add the buyer's agent commission into the loan amount.

For more information, please feel free to contact us.

Best regards,

Kirsten Prizzi, Naples Real Estate Broker

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