Starting August 17, American home shoppers will be required to sign a contract with their real estate agent specifying the agent’s compensation. The Consumer Federation of America has outlined key elements that such buyer-broker contracts should contain to protect consumers’ interests. According to the federation, buyer-broker contracts should be in plain language, with a readable font size, and clearly state the expiration date, broker’s fee, and buyers’ right to terminate the contract at any time at no cost. The contracts should also ensure that fees for agent services are deducted from the commission if the buyer purchases a home, seller concessions are paid to buyers, and buyers are not bound to mediation or arbitration in case of a dispute. Additionally, the agreements should not pre-approve an agent’s dual representation and should require separate written approval in such cases. These guidelines aim to prevent contracts that are unfair to consumers and ensure transparency in real estate transactions. The requirement for buyer-broker contracts nationwide stems from a class-action settlement over real estate commissions. These measures are designed to empower homebuyers and safeguard their interests in the real estate market.
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Creating a user-friendly real estate contract for buyers – Daily News
