HOW THE FORMS HANDLE COMPENSATION

What Do the Actual Forms Say?

Read the agreement. Follow the money.

Talking points:

• The EBBA-7tb is the buyer agreement for transaction brokerage.
• The EBBA-7sa covers single-agent representation.
• The ERS-20tb is the transaction-broker listing agreement.
• Compensation terms appear in multiple paragraphs of the listing agreement.
• Consumers may have difficulty understanding how all the provisions work together.

My proposal: Identify the relationship clearly and consolidate compensation provisions so buyers and sellers can see the complete arrangement.

What If the Buyer Has No Agent?

Does the consumer save money?

Talking points:

• A buyer may decide not to hire a buyer’s agent.
• The buyer may expect that the decision will save money.
• Depending on the listing agreement, the listing brokerage may still be entitled to compensation that does not depend on a separate buyer’s brokerage being involved.
• The result depends on the actual agreement and the services provided.

Key questions:

• Does the seller save money?
• Does the buyer receive a financial benefit?
• Can the listing brokerage retain compensation the consumer expected would not be paid?

My proposal: The agreement should state clearly what the listing brokerage receives when a buyer has an agent and when the buyer does not.

Could the Showing Agreement Create Pressure?

Does the buyer understand the compensation agreement?

Talking points:

• Buyers may sign showing or buyer-broker agreements before touring homes.
• They should understand the agreed fee and who is responsible for paying it.
• Agents should not mislead buyers by claiming that compensation must be paid to the listing brokerage if the buyer does not agree to pay the buyer’s agent.
• Compensation should be explained accurately, without pressure.

Key question: Are consumers making informed decisions, or are complicated agreements making it harder to understand the alternatives?