Tired of the talk about commissions and buyerʻs agreements? As REALTORS®, we understand
how you feel. It has dominated the headlines of the entire real estate industry in the wake of
the proposed National Association of Realtors (NAR) settlement relating to broker comissions.
But, perhaps that was the problem... We werenʻt talking about it enough.
Resulting from the settlement, Buyers are now required to sign written agreements with their
real estate professional before touring a home, including a live virtual tour, in an effort to clearly
define agent compensation and responsibilities. However, a Buyer is not required to sign an
agreement just to view an Open House.
What exactly does that mean for the Buyer, Seller and Agent in your next real estate
transaction? It means a change in the conversation. Agents working with Buyers will address
both compensation and representation duties at the beginning of the home buying process.
Agents working with Sellers will discuss how this may affect certain contractual aspects of a
Buyerʻs offer to purchase. For many agents and clients, it will be business as usual.
However, the Buyer Representation Contract is not just about commissions. It aims to protect
and educate the Buyer by clearly defining responsibilities expected of their agent and
themselves. Itʻs also a committment to promote the interests of the Buyer with good faith,
loyalty and fidelity throughout the home buying process. Therefore, the Buyerʻs Representation
Contract is an important aspect when buying a home on Kauaʻi, Hawaii or anywhere USA.
As REALTORS®, we are bound by the Code of Ethics to have open and transparent
conversations about your options. That is why the NAR has provided the following consumer
guides to help answer FAQʻs, so Buyers and Sellers will be better prepared when itʻs time to
have the conversation.