{"id":24985,"date":"2025-06-17T15:19:25","date_gmt":"2025-06-17T15:19:25","guid":{"rendered":"https:\/\/www.anthonydidonato.net\/wordpress\/?p=24985"},"modified":"2025-06-17T15:19:28","modified_gmt":"2025-06-17T15:19:28","slug":"help-agents-explain-the-importance-of-written-buyer-agreements","status":"publish","type":"post","link":"https:\/\/www.anthonydidonato.net\/wordpress\/help-agents-explain-the-importance-of-written-buyer-agreements\/","title":{"rendered":"Help Agents Explain the Importance of Written Buyer Agreements"},"content":{"rendered":"\n

The Sitzer-Burnett verdict spotlights the need for more transparency when it comes to compensation. Help agents understand the importance of the written buyer agreement and how to communicate its value to their clients.<\/p>\n\n\n\n

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The October 2023 Sitzer-Burnett verdict<\/a> has reinvigorated the conversation around compensation and transparency among real estate professionals. The topic of written buyer agreements is top of mind in the real estate industry, and for good reason: due to the proposed settlement reached in the litigation brought on behalf of home sellers relating to broker compensation, all MLS participants providing services to a buyer will soon be required to enter into a written agreement before the buyer tours a property on the MLS.<\/p>\n\n\n\n

The legally binding contract provides protection and transparency for the agent and consumer alike. <\/p>\n\n\n\n

\u201cIt solidifies and quantifies the responsibilities of the broker to the buyer and the responsibilities of the buyer working with the broker,\u201d states Lynn Madison, a REALTOR\u00ae in Schaumburg, Il. and CEO of Madison Seminars.<\/p>\n\n\n\n

Rather than relying on a verbal conversation or assuming an understanding, a written agreement during a transaction spells out expectations, including the services provided to the buyer, the agency relationship, how the brokerage is compensated, and how that system serves the buyer\u2019s best interest.<\/p>\n\n\n\n

In recent months, more brokerages have been working to relay the importance of written buyer agreements to help ensure clarity and transparency between the broker and the consumer. Consumers deserve transparency and need to understand the full breadth of the services provided by buyer brokers, which means agents need to be able to communicate their value effectively. Given the coming practice changes, Madison feels that brokers should train their agents now on the use and significance of written agreements and how to present them to consumers.<\/p>\n\n\n\n

Make Sure Agents Understand the Buyer Representation Agreement<\/h2>\n\n\n\n

\u201cThey help the buyers, the sellers, the agents and the broker,\u201d says Gretchen Pearson, president and owner of Berkshire Hathaway HomeServices Drysdale Properties in Danville, Calif. Written buyer agreements have been mandatory for her 900 agents since the start of the pandemic.<\/p>\n\n\n\n

She started training agents on written buyer agreements before the pandemic hit, but when it did, real estate professionals in California were required to have buyers sign statements regarding exposure to the virus. Certain public health requirements had to be followed, like airing out the home for two hours before a property could be shown, and the statements acted as a binding contract stating the agents would adhere to those requirements.<\/p>\n\n\n\n

Pearson said the written agreements formalized the relationship and the responsibilities of each party. When regulations around the pandemic lessened, Pearson says it was a natural fit to continue using written buyer agreements even after the COVID protocols were no longer required.<\/p>\n\n\n\n

To help agents understand the importance of using these agreements, they need to understand them. Explain to agents that written buyer agreements are legally binding documents that are designed to protect both the consumer and the broker, and that they clearly outline the duties and responsibilities of both parties. With everything outlined clearly, the consumer will understand what they can expect the broker to do for them.<\/p>\n\n\n\n

When thinking through the use of written agreements, consider these points:<\/p>\n\n\n\n