Showing agreement VS Exclusive buyer brokerage agreement

/ Miami Real Estate Market / By

When it comes to the real estate market in Florida, it’s essential for buyers to understand the various agreements that may come into play during the buying process. One such agreement is the showing agreement, which plays a unique role in the property purchase process. In this article, we will explore the practice of Realtors having their clients sign showing agreements in Florida, what these agreements entail, and how they differ from exclusive buyer brokerage agreements.

Showing Agreements in Florida

A showing agreement is a document sometimes used by Realtors in Florida to formalize their relationship with prospective buyers. Essentially, it is a prelude to a potential real estate transaction. When a buyer signs a showing agreement with a Realtor in Florida, they are entering into a mutual understanding. The primary components of a showing agreement can be summarized as follows:

  1. Buyer’s Agreement to Utilize Realtor’s Services: By signing a showing agreement, the buyer agrees that if they become interested in purchasing or renting a property that their Realtor has shown them, they will utilize the professional services of that specific Realtor throughout the transaction process.

  2. Commission Agreement: The showing agreement establishes that if the buyer decides to purchase a property they have seen with their Realtor, the Realtor will earn a commission as compensation for their services. This commission is typically paid by the seller of the property, but the showing agreement clarifies the Realtor’s right to this compensation.

  3. Duration: These agreements often specify the duration for which the agreement is valid.

  4. Exclusivity: Unlike exclusive buyer brokerage agreements, showing agreements do not typically grant exclusivity to the Realtor. This means that the buyer can still work with other Realtors or pursue properties independently during the agreement’s term.

Exclusive Buyer Brokerage Agreements in Florida

In contrast to showing agreements, exclusive buyer brokerage agreements offer a more comprehensive and exclusive relationship between the buyer and their Realtor. Here are the key distinctions between these two types of agreements:

  1. Exclusivity: Exclusive buyer brokerage agreements grant the Realtor exclusive rights to represent the buyer in the purchase of a property within a specified timeframe. During this period, the buyer typically agrees not to work with other Realtors.

  2. Compensation: While showing agreements focus primarily on the commission the Realtor will receive if a property is purchased, exclusive buyer brokerage agreements often outline the Realtor’s commission structure in more detail.

  3. Duration: Exclusive buyer brokerage agreements usually have a longer duration compared to showing agreements. They can cover a specific period or even extend until a particular property is purchased.

  4. Scope: These agreements may specify the types of properties or locations the Realtor will help the buyer explore.

  5. Termination: Exclusive buyer brokerage agreements may have more stringent termination clauses, often requiring written notice and possibly payment of compensation to the Realtor if terminated prematurely.

Conclusion

In Florida, it is a common practice for Realtors to have their clients sign showing agreements when they begin working together. These agreements clarify the relationship between the buyer and the Realtor, ensuring that the Realtor is compensated for their services if the buyer decides to purchase a property they have viewed together. It’s important for buyers to understand the distinctions between showing agreements and exclusive buyer brokerage agreements, as the latter offers a more exclusive and comprehensive representation of the buyer’s interests. Whether a showing agreement or an exclusive buyer brokerage agreement is suitable depends on the buyer’s preferences and the specific dynamics of the real estate transaction. 

In Miami, your real estate project begins here

Arnaud HOMBURGER
Beachfront Realty Miami

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