In the ever-evolving realm of real estate, the discussions surrounding commissions and the resulting confusion seem to be never-ending. Amidst this landscape, we find ourselves tackling a topic that holds more relevance than ever – the Louisiana Realtor recommended draft of the Buyer Agency Agreement.
Jim Keaty, with nearly two decades of experience at Keaty Real Estate, breaks down this crucial tool, emphasizing its potential significance in the face of recent developments within the National Association of Realtors (NAR) and ongoing class action lawsuits.
The Louisiana Landscape: Mandatory or Not?
As of now, the Buyer Agency Agreement is not a mandatory form in Louisiana. However, chatter within the industry suggests the possibility of making it mandatory or introducing a similar document to address commission-related confusion.
Jim Keaty emphasizes, “While not mandatory, it is a crucial tool that we should all consider using, or at least one that your broker does approve.”
Exclusive Agreement and Designated Agent
The agreement provides an exclusive arrangement, meaning the buyer works solely with the named broker or the designated agent during a specified period. This exclusive nature aligns with Article 16 of the Realtor Code of Ethics.
While non-exclusive agreements are acceptable, it’s vital to discuss the differences during negotiations. Although Louisiana law doesn’t mandate the use of a Buyer Representation Agreement, industry experts highly recommend it.
Navigating Compensation Negotiations
Jim Keaty delves into the compensation aspects, reiterating that compensation for real estate services is negotiable. The agreement outlines various methods and conditions, allowing both parties to contract for appropriate compensation.
He highlights, “Before we start, compensation is always negotiable,” emphasizing the flexibility inherent in the agreement.
Jim Keaty underlines Section 9 as arguably the most important, addressing compensation options and scenarios. Section 10 specifies the term of the agreement, while Section 11 details termination rights, allowing buyers to terminate with written notice.
Elevate Your Real Estate Transactions
In the dynamic world of Louisiana real estate, the Exclusive Buyer Representation Agreement emerges as a valuable ally, enhancing professionalism, trust, and clarity in transactions. As you navigate the complexities of the industry, consider this agreement as a powerful tool in your arsenal.