5 Surprising Truths About Florida's New Home Buyer Agreements

The headlines surrounding the National Association of Realtors (NAR) settlement have created a swirl of confusion for homebuyers. With a new requirement for buyer-broker agreements in Florida effective August 17, 2024, many are left wondering what this means for their home search. This article is a clear, no-nonsense guide designed to cut through the noise. Here are five surprising and impactful realities of this new landscape that every Florida homebuyer needs to understand.

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1. You're Not Locked In: The Shocking Flexibility of "Mandatory" Agreements

The term "mandatory agreement" often brings to mind a rigid, long-term contract with no way out. However, the reality is surprisingly different. While an agreement is now required before touring a home with an agent, the terms of that agreement are completely negotiable.

Under the new rules, NAR policy does not dictate the duration of the agreement. You and your agent can set a term for any length of time that suits your needs. This could be as short as a single day for one property tour, a weekend of house hunting, or a more traditional multi-month period.

A recent HomeLight survey of top agents highlights this flexibility in action. While 42% of buyers still opt for multi-month agreements, a significant portion are requesting much shorter terms, including:

• Per-property agreements for a single showing (21%)
• One-day (24-hour) agreements (5%)

This flexibility is your new strategic advantage. It allows you to "test drive" a working relationship with a real estate agent before committing to a long-term partnership, giving you more control over the process than ever before.

2. The Seller Can Still Help Pay: De-bunking the "Buyer Pays" Myth

One of the biggest fears circulating is that buyers must now pay all agent commissions directly out-of-pocket. This is a myth. While the written agreement makes you formally responsible for your agent's compensation, it does not prevent you from negotiating with the seller to cover this cost.

This is typically handled through seller concessions in your purchase offer, similar to how closing costs are often negotiated. Better yet, Florida has created specific legal forms to write this request directly into your purchase offer, such as the Compensation/Concession Addendum Related to Buyer’s Broker (CARB-1) or the Credit Related to Buyer’s Broker Compensation (CR-6 FF). These tools transform a possibility into a practical negotiation point.

Crucially, major financial institutions have adapted to this reality:

• Fannie Mae and Freddie Mac have confirmed that seller concessions can be used to pay buyer-broker fees. As long as this practice remains "customary," these payments will not be subject to the caps on Interested Party Contributions (IPCs).
• The Department of Veterans Affairs (VA) temporarily lifted its ban on veteran buyers paying for agent representation, effective August 10, 2024, ensuring VA loan users are not disadvantaged.

This flexibility is a critical piece of the puzzle. It provides a practical path for buyers, especially those with tight budgets, to afford professional representation without needing thousands of extra dollars in cash at closing.

3. "Touring" Has a Specific Trigger: The Truth About Open Houses

Many buyers worry they'll need a signed contract just to browse online listings or walk into an open house. This is not the case. The requirement for a written agreement is triggered by two specific conditions: an agent must be "working with" a buyer, and the agreement must be signed prior to "touring a home."

Here’s what those terms actually mean:

• "Working with" a buyer involves an agent providing brokerage services, such as identifying potential properties, arranging private tours, or negotiating on the buyer's behalf. It is distinct from an agent simply marketing their services or speaking with visitors at an open house they are hosting for the seller.
• "Touring a home" is defined as the moment the buyer or their agent physically enters a property for a showing. This also includes a live virtual tour provided by the agent.

This means you can attend an open house as an unrepresented buyer and speak with the listing agent without signing anything. In that scenario, the agent is working for the seller, not for you. This specific trigger gives you the freedom to explore the market casually and visit open houses without feeling pressured into a formal commitment before you're ready.

4. These Agreements Aren't Actually New (At Least in Florida)

While the nationwide mandate is a significant change, the concept of a written buyer agreement is not new to the Sunshine State. Florida Realtors has had an "Exclusive Buyer Broker Agreement" (EBBA) form available for agent use since at least 2016.

The recent updates to the Florida forms were not about inventing a new type of contract. Instead, the changes were primarily to incorporate the specific disclosure language required by the NAR settlement. This includes conspicuous statements clarifying that broker commissions are not set by law and are fully negotiable.

This history is significant for you as a buyer; it means Florida’s real estate professionals are adapting a familiar, time-tested process, not scrambling to implement an entirely new and confusing system. This foundation of experience should provide confidence to both agents and the buyers they serve.

5. Your Agent Can't "Steer" You: How the New Rules Actually Protect You

A common concern is that agents might now "steer" buyers toward properties where the seller offers a higher commission. The new rules actually make this less likely and strengthen existing ethical protections.

The NAR Code of Ethics has always prohibited steering—the practice of guiding clients toward or away from properties based on the compensation an agent will receive. The new written agreements reinforce this rule. Because your agent's compensation is now clearly defined in the agreement you sign with them, the amount of compensation offered by a seller or listing broker becomes irrelevant to what your agent earns from your transaction. This effectively removes the financial incentive for steering.

The NAR's consumer guide on this topic puts the agent's duty plainly:

"A REALTOR® has an ethical duty to tell a buyer about every home available for sale that meets their criteria. That means that REALTORS® will let you know about all available homes, regardless of whether the seller or listing broker is offering compensation to your buyer’s agent, and even if compensation offered by a seller or listing broker is less than what you agreed to pay your agent in your written buyer agreement."

Ultimately, this change forces the conversation into the open, creating a transparent system where your agent’s compensation is tied to their agreement with you, not to a hidden offer from a seller—precisely where that duty always should have been.

EXAMPLES: Florida Buyer Broker Agreement

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Conclusion: Your Guide to a More Transparent Home Purchase

These new rules aren't just procedural—they are a fundamental shift in power to you, the buyer. Your first major decision is no longer which house to see, but which professional to hire. Use the flexibility of short-term agreements to interview agents, test their skills, and ensure you have a true advocate before making the biggest purchase of your life.

Now that the rules place you firmly in the driver's seat, how will you approach choosing the right real estate professional to partner with on your home buying journey?