NAR FAQ Sheet - Acknowledgement Form
Read each section thoroughly and complete this form.
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NAR FAQ SHEET Link
Agent Name
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First Name
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Area Code
Phone Number
Agent Email
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example@example.com
CalDRE#
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EXAMPLE: In Section (K) the Additional Terms, Include the following: “Seller has expressed the willingness to offer a 2% or $10,000 to Buyer's Broker at the close of escrow. See attached form SPBB.”Attach and include the form SPBB - Seller Payment to Buyer’s Broker - On section 3 Advisories And Addenda of the listing agreement mark Other and add the SPBB form to be part of the listing agreement.
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I confirm I have read the Listing Agent section.
SPBB - Seller Payment to Buyer’s BrokerThis form is signed by the sellers authorizing the listing agent to give to the buyer’s agents to show the selling agent how much the seller is willing to offer for compensation.
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I confirm I have read the Listing Agent section.
Modification of Terms - Listing AgreementThis form should be used to document a change in the listing agreement. Preprinted language allowed for changes to price and expiration date, and new preprinted language allowed for compensation to be changed.
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I confirm I have read the Listing Agent section.
If the seller were to counter the buyer’s request to cover their broker’s compensation, do they counter the compensation amount or do they counter the purchase price? Either one is ok. The seller may counter the purchase price, or the seller may counter back to reduce the compensation. If the seller chooses to counter the compensation to the buyer’s broker instead of the purchase price, then the counter should be specific by referencing the amount stated in the Seller Payment to Buyer’s Broker (SBPP). But there is no specific C.A.R. form for this.
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I confirm I have read the Listing Agent section.
Can I put offers of compensation on Open House flyers? YES
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I confirm I have read the Listing Agent table section.
Can I make offers of compensation on the phone? YES
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I confirm I have read the Listing Agent table section.
Can I send email blasts with offers of compensation in them? YES– being careful to indicate that it’s negotiable
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I confirm I have read the Listing Agent table section.
Am I REQUIRED to have a sign-in sheet at my Open Houses? YES– C.A.R. Form OHNA-SI (Open House Visitor Non-Agency Disclosure and Sign-In)
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I confirm I have read the Listing Agent table section.
Am I required to have BBA’s at my Open House? NO
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I confirm I have read the Listing Agent table section.
Can I work with buyers without having Buyer Broker Agreements signed with them? NO
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I confirm I have read the Listing Agent table section.
Can I post offers of compensation on social media sites like Facebook or Instagram? BE CAREFUL – making unilateral offers in private groups would be in violation, but a single posting of your own listing offering compensation would be ok
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I confirm I have read the Listing Agent table section.
Can I put offers of compensation in my off-MLS disclosure package? BE CAREFUL – if you link it from the MLS, this is an “indirect” link and will be in violation
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I confirm I have read the Listing Agent table section.
Can I hide the compensation offer in a text field? NO – and the MLS is obligated to scan these for possible violations of $2,500 to $5,000 and suspension of the agent forever
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I confirm I have read the Listing Agent table section.
Can I post an offer of compensation at my Open House? YES
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I confirm I have read the Listing Agent table section.
What about making a QR code that goes to my single property website where there is an offer of compensation? YES, as long as you don’t also have that link/site in the MLS, which would be a direct link violation
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I confirm I have read the Listing Agent table section.
Can I put the negotiated commissions in the comments of my listing when it closes (sold)? NO
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I confirm I have read the Listing Agent table section.
Should I join portals or websites that have networks hosting unilateral offers of cross-company compensation? NO - Not at this time – you would be violating the terms of the settlement and could face serious legal consequences without any protections if discovered
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I confirm I have read the Listing Agent table section.
OHNA-SI - Open House Visitor Non-Agency Disclosure and Sign-In One of the terms of the NAR proposed settlement is that agents “working with” a buyer need to have a buyer representation agreement before showing a property. The OHNA informs visitors that they are not in an agency relationship with the listing brokerage, and therefore not “working with” the brokerage. If the visitor already has another broker working on their behalf, then the listing agent would want to be informed of who the other agent is to avoid conflicts and to allow the listing agent to follow up without violating the Code of Ethics. The form doubles as a sign-form for visitors to an open house.
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I confirm I have read the Open House section.
RPA - California Residential Purchase Agreement And Joint Escrow Instructions Paragraph 3G(3)18 You have to Check this box to be paid from the seller and add the following form:SPBB - Seller Payment (Concession) For Buyer’s Broker’s Compensation
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I confirm I have read the Buyer Agent section.
Where in the RPA can the buyer write in their request for the seller to pay seller concessions? There are two places. In 3G(1)5E of the RPA, the seller agrees to credit the buyer for “closing costs” as a default. In 3G(3)18, the seller agrees to pay the buyer’s obligation to compensate their own broker.
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I confirm I have read the Buyer Agent section.
BRBC - Buyer Representation and Broker Compensation Agreement This form satisfies the obligation to have a written agreement with a buyer. The property to be acquired defaults to a single-family home, condo, or mobile with options for multi-family and other types (2B (1)).A general location for the property, either city or county, needs to be specified (2B (2)). Buyer preferences can be specified in paragraph 2C by attaching (BIPP) - Buyer Identification of Preferences and Priorities form. The buyer’s broker’s compensation is specified in paragraph 2E(1). The broker may receive payments from a seller that are credited against the buyer’s obligation.***Brokers are not allowed to receive any overage.****The buyer is advised of the risk of signing representation agreements with different brokers (2D and 7).
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I confirm I have read the Buyer Agent section.
Confirmation of Compensation: Reassert compensation obligation on the same page as the buyer's signature so only the last page of BRBC is needed to provide to the seller as proof in case the buyer asks the seller to pay the buyer’s broker in the purchase agreement (15).This agreement is valid for 3 months but can be extended.BRBC agreement date and the compensation to the agent can be adjusted up or down but with a full written agreement. Use form DM-LA.
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I confirm I have read the Buyer Agent section.
BCA - Broker Compensation AdvisoryThis one-page form explains how brokers can get paid in a transaction. Listing Agreements:Paragraph 1 discusses the seller side of the transaction and how payments to listing brokers do not get shared with buyer’s brokers. Buyer representation agreements: Paragraph 2 discusses the obligation to have a written compensation agreement with a buyer. Paragraph 3 addresses the ways a buyer’s broker may be paid. The two primary options are: (i) The buyer pays directly; and (ii) The seller pays pursuant to term in purchase agreement or single party agreement, if the seller is unrepresented.
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I confirm I have read the Buyer Agent section.
Property Showing and Representation Agreement This form creates a written representation agreement with a buyer. It is valid for only 3 properties, it creates a non-exclusive relationship and has a representation period not exceeding 30 days.
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I confirm I have read the Buyer Agent section.
MT-BR Modification of Terms – Buyer Representation Agreement This form should be used to document a change in the buyer representation agreement. Preprinted language allows for changes to expiration date and compensation. This form could be used in addition to the DM-BR if the broker believes that a previous BRBC was entered into at too low of a compensation rate.
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I confirm I have read the Buyer Agent section.
BIPP - Buyer Identification of Preferences and Priorities The BIPP helps the buyer’s agent know what is important to the buyer such as price range, number of bedrooms and baths, single story v. multi-level property, school district, “green” features, and accessibility features. Information in the form is confidential and may change over time.
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I confirm I have read the Buyer Agent section.
The buyer pays the compensation through a buyer representation agreement. - CAR FORMS TO USE Buyer Representation and Broker Compensation Agreement (C.A.R. Form BRBC) or Property Showing and Representation Agreement (C.A.R. Form PSRA)
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I confirm I have read the Buyer Agent table section.
The buyer negotiates for the seller to pay the compensation that the buyer owes the buyer’s broker according to the buyer representation agreement. - CAR FORMS TO USE Residential Purchase Agreement (C.A.R. Form RPA) and Seller’s Payment to Buyer’s Broker (C.A.R. Form SPBB)
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I confirm I have read the Buyer Agent table section.
If the seller is unrepresented, the buyer’s broker can contract directly with the seller for payment. - CAR FORMS TO USE Residential Purchase Agreement (C.A.R. Form RPA) and Seller’s Payment to Buyer’s Broker (C.A.R. Form SPBB)
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I confirm I have read the Buyer Agent table section.
Under the BRBC, a buyer and broker can enter into an exclusive or non-exclusive relationship. What is the difference? There are two main differences. First, under a non-exclusive agreement (which the BRBC defaults to), a prerequisite to the broker earning compensation is that there must be “broker involvement” with the property. On the other hand, under an exclusive agreement, the broker has the right to compensation even if the buyer acts alone or with a different broker in buying a property during the representation period. Second, unilateral cancellation under a non-exclusive agreement is effective immediately upon receipt of the cancellation notice (unless otherwise agreed in the BRBC), while unilateral cancellation under an exclusive agreement is not effective until 30 days after receipt of the notice.
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I confirm I have read the Buyer Agent section.
How do I make the BRBC an exclusive agreement? The box in paragraph 2A(2) must be checked, but additionally, the buyer must initial the Exclusive Representation box (paragraph 15 of the BRBC).
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I confirm I have read the Buyer Agent section.
What does “broker involvement” mean under the BRBC? “Broker involvement” means any of the following: • The buyer physically entered and was shown the property by the broker; • The broker showed the property to the buyer virtually (e.g., via a videoconference or walk-through); • The broker submitted to the seller a signed, written offer from the buyer to acquire, lease, exchange, or obtain an option on the property; • The broker performed a market analysis related to the property or reviewed property-specific documents or disclosures with the buyer; or • The property was introduced to the buyer by the broker, or the property was one for which the broker acted on the buyer’s behalf. *Note that merely sending the buyer a list of properties is not deemed “broker involvement” without documented action on the part of the broker, for example: analyzing the property for the buyer specifically, assisting the buyer in the potential acquisition of the property, or communicating with the seller or seller’s agent about the buyer’s potential acquisition of the property.
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I confirm I have read the Buyer Agent section.
Who can cancel the BRBC, and how?Either the buyer or broker may unilaterally cancel the agreement by giving notice to the other, or it may be canceled by mutual agreement. No reason needs to be given for the cancellation. The Cancellation of Buyer Representation Agreement (COBR) may be used to provide notice. If the agreement is non-exclusive, a unilateral cancellation is effective immediately upon receipt of notice (unless otherwise agreed in the BRBC). On the other hand, unilateral cancellation under an exclusive agreement is not effective until 30 days after receipt of notice.
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I confirm I have read the Buyer Agent section.
Am I entitled to compensation if, after notice of cancellation of the BRBC, the buyer enters into a contract to purchase property for which there was “broker involvement” prior to the effective date of cancellation?It depends. Under the BRBC, yes, if the broker provides the buyer with a written list of those properties for which there was “broker involvement,” which must be delivered to the buyer within 5 calendar days after the effective date of cancellation. The Notice of Broker Involved Properties (NBIP) can be used for this purpose. But the answer is no if the broker does not deliver the list on time or if the property acquired was not on the list.
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I confirm I have read the Buyer Agent section.
Am I entitled to compensation if, after the end of the BRBC representation period, the buyer enters into a contract to purchase the property described in the BRBC for which there was “broker involvement?”Possibly. First, the parties must have agreed on a “continuation period.” This is an optional term under 2E(3) which must be filled in if the broker is to benefit by it. Second, prior to the expiration of the BRBC or any extension thereof, the broker must deliver to the buyer a written notice of those properties for which there was broker involvement. Once again, the NBIP can be used for this purpose.
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I confirm I have read the Buyer Agent section.
My buyer is refusing to sign the BRBC. Is there a simpler version of the BRBC? Yes. There is the PSRA - Property Showing and Representation Agreement form. It has many of the features of the BRBC but is much shorter and simpler. The main differences between the PSRA and the BRBC are: • The PSRA cannot last longer than 30 days • It can only be non-exclusive • It has space for identifying only three properties • It may be canceled at any time
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I confirm I have read the Buyer Agent section.
Is a buyer required to deliver the Buyer Financial and Personal Information form (BFPI)? Yes. It’s not optional. Every buyer should provide one. However, the timing of delivery can be changed. By default, the BFPI must be delivered within 5 days of signing the BRBC. The BFPI requires the buyer to provide relevant personal and financial information including proof of funds needed to complete the purchase of a property and satisfy the obligation to pay the broker, and a preapproval/prequalification letter, to assure the broker of the buyer’s ability to acquire property.
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I confirm I have read the Buyer Agent section.
Do I need to work for a buyer who does not have the funds to pay me? No. As stated above, if the buyer does not qualify financially, then the broker may cancel in writing. But buyers who know they lack the funds to pay their broker should check the applicable box in paragraph 2G(2) of the BRBC. There are two boxes, one indicating that the buyer does not have sufficient funds to pay the broker and a second box indicating that the buyer intends to obtain a loan that does not allow the buyer to pay compensation to their own broker. If either box is checked, the broker is given permission to seek compensation from the seller as stated in paragraph 9B(2) of the BRBC and use paragraph 3G(3) of the RPA to ask the seller to pay. If the buyer’s broker is not able to arrange for full compensation through the seller or other sources, the broker may withdraw from the transaction. In that case, even though the buyer’s broker would not be entitled to compensation if the buyer completes that purchase, the broker should be relieved of any potential liability if the buyer pursues the transaction because the broker would no longer represent the buyer on the potential purchase. The BRBC would still be valid however if the buyer pursues other properties that fit the parameters of the BRBC. If the buyer’s broker intends to withdraw from the transaction, the broker should do so in writing provided to the buyer, the seller, and the seller’s broker as soon as possible, and preferably before the buyer enters into a binding contract with the seller.
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I confirm I have read the Buyer Agent section.
If I don’t pay a buyer's broker, will agents show my house?Agents are legally required to show homes as directed by their buyers regardless of compensation. Your choice regarding buyer broker compensation is best discussed with your listing agent to determine the right decision for you.
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I confirm I have read the FAQ by Sellers section.
Could I pay my listing agent more than the buyer's agent gets paid? Absolutely. You can negotiate the fees and services with your listing agent separately from what the buyer may request or pay their buyer’s agent.
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I confirm I have read the FAQ by Sellers section.
What if I don’t want to pay a fee to the buyer's agent?Benefits of Offering Buyer Concessions:✔Enhance attractiveness to a broader range of buyers ✔ Potentially quicker sale by appealing to buyers’ financial considerations ✔ Stand out in competitive markets by addressing buyer needs up frontMaking an Informed Decision Concessions can be a powerful tool in the right circumstances. 50% of recent sales had a form of buyer concession.Lack of buyer concessions may lead to:●Lower sales price and more days on the market. ● Buyer offers may be lower to offset closing costs such as buyer broker fees, replacement/repair costs, etc. ● Fewer buyers may be willing to make acceptable offers resulting in more days on market. 2 Limited pool of interested buyers. For example, FHA and VA borrowers may be impacted by concessions and credits from the sellers to offset paying for buyer representation. ● Relocation clients may be impacted by how buyers' representation will be provided and compensated.
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I confirm I have read the FAQ by Sellers section.
What changes on August 17? Beginning August 17, all agents will need to use a buyer representation agreement to show you properties. This practice is already in place in many markets and will now apply across the country.
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I confirm I have read the FAQ by Buyers section.
What is a buyer representation agreement? The buyer representation agreement defines the scope of work your agent is going to provide including the contract duration, services, and compensation. This means you will know the services and costs upfront with the agent you’ve chosen to represent you.
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I confirm I have read the FAQ by Buyers section.
Will I have to pay my agent out of pocket? Not necessarily. There will be a variety of options available to you. For example, many buyers will ask the seller to credit them at the close of escrow to pay their buyer broker fees while others will ask the sellers to pay their buyer broker fees directly.
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I confirm I have read the FAQ by Buyers section.
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