BUYING WITH CLARITY

Before We Tour: Your Buyer Brokerage Agreement, Explained

What this agreement covers, when it’s needed, and what it could cost.

If you bought a home a few years ago, you may not remember signing an agreement before seeing properties. It’s reasonable to ask why you’re being asked now—and what signing could cost you. I want you to understand the agreement before I send it, so there are no surprises.

I’m Adi Rakanovic, a Realtor with Lipply Real Estate. Here is how the agreement I use is intended to work.

Why do I need to sign before seeing a home with you?

This is not just an Adi or Lipply policy. Since August 2024, an MLS participant working with a buyer must have a written buyer agreement signed by the buyer before touring a home with that buyer—in person or by live virtual tour. That applies whichever MLS-participating buyer’s agent you choose. The services, length of the agreement, and compensation are negotiable.

What am I agreeing to?

The form I use is an Exclusive Buyer Brokerage Agreement with Lipply Real Estate. It identifies the property type and area, start and end dates, what the brokerage and buyer will do, and how the brokerage may be paid. We’ll fill in and discuss those details together.

How does buyer-broker compensation work?

The agreement is for 3% compensation to Lipply Real Estate for its services. Buyer-broker compensation is negotiable and not set by law. I will review the exact amount with you before you sign.

Will I have to pay my agent out of pocket?

In my experience, the vast majority of sellers I encounter in our market still offer compensation to the buyer’s agent. A seller or listing broker may pay some or all of the amount in our agreement. Seller-paid compensation can reduce what you owe under the agreement. Before we pursue any property, I will discuss with you any possible remaining amount, so you can decide whether to move forward.

Lipply’s separate $495 brokerage fee applies when a purchase closes. It goes to Lipply Real Estate—not to me—and is outside my control.

What is the $495 fee? Is there a retainer?

Lipply Real Estate charges a $495 brokerage fee separate from percentage-based buyer-broker compensation. It helps cover brokerage administrative work, technology, and related transaction costs. I do not charge a retainer or upfront fee to sign the buyer agreement.

No buyer-broker compensation or $495 brokerage fee is due unless the purchase closes. If a purchase does not close, you owe nothing for my work on that transaction.

Can I stop working with you?

You can cancel anytime for free. If you want to stop working together, tell me, and we will address the end of the relationship in writing. There is no cancellation fee. The agreement includes provisions involving a property already under contract and a possible protection period for a home introduced during our work together. I will explain those terms before you sign.

What should I check before signing?

  • Are the property type, location and start/end dates what we discussed?
  • Does the agreement state the 3% buyer-broker compensation we discussed?
  • How would seller or listing-broker compensation reduce what I owe, and will any possible remaining amount be discussed before we pursue a property?
  • Does the completed agreement reflect that no buyer-broker compensation or $495 brokerage fee is due unless the purchase closes?
  • Can I cancel anytime for free?
  • Do I understand the protection-period and dispute-resolution terms?

Questions before signing?

Send them to me.

This page explains my proposed working arrangement in general terms. It does not replace the agreement you sign or legal advice. For advice about your legal rights or obligations, consult a Florida real-estate attorney.

General background: NAR consumer guide; NAR MLS policy.