Buyer Owes $24K After Breaching a Buyer Broker Agreement: Here’s What You MUST Know
- marketing928870
- 2 days ago
- 2 min read
Under the new NAR rules, this agreement isn’t just paperwork it’s a binding contract that creates a legal relationship between you and the brokerage representing you. And in New York, it’s required before a buyer tours any property with an agent or broker.
If you’re planning to buy a home, especially in Queens or Long Island, here’s what you need to know before signing.
What Signing an Exclusive Buyer Representation Agreement Really Means
Once you sign, you’re officially hiring a brokerage to represent you from the very first showing all the way through closing. This agreement outlines responsibilities on both sides, but it also protects the brokerage’s time, expertise, and work on your behalf.
Here’s what you’re agreeing to when you sign:
1. You Must Work Exclusively With That Broker
The agreement defines the property type, price range, and geographic area you’re searching in. Within those limits, you cannot work with another agent during the contract period.
2. They Handle All Showings, Offers & Negotiations
Your broker becomes your dedicated representative. They schedule showings, write offers, negotiate terms, and guide you every step of the way.
3. You May Be Required to Pay the Broker Fee
If you buy, lease, or otherwise acquire a property that your broker introduced to you during the agreement term, you are responsible for the negotiated Broker Fee even if the seller does not contribute to it.
4. You Could Still Owe Money Even After Switching Brokers
Many agreements include a “protection period.”If you purchase a home your original broker showed you during that period, even with a new agent, you may still owe the original Broker Fee.
This is exactly how one buyer ended up facing a $24,000 bill after closing with a different agent.
Why This Matters in Today’s Market
With the latest NAR changes and New York's written-agreement requirement, buyers must fully understand their obligations before signing anything.
The Exclusive Buyer Representation Agreement is a valuable tool it creates transparency, loyalty, and a clear working relationship but breaking it can cost you.
Your Takeaway: Know Before You Sign
Buying a home is one of the biggest financial decisions you’ll ever make. Make sure you understand the terms, ask questions, and work with professionals who prioritize transparency and education.
If you're unsure about your agreement, speak with your attorney or a qualified advisor.
Disclaimer
Disclaimer: This post is for general informational and educational purposes only and does not constitute legal, tax, or financial advice. Always review your Exclusive Buyer Representation Agreement with your own attorney or professional advisor before signing. Terms and Conditions apply.
LJ Your Local Guide to Homeownership!
127-03 Rockaway Blvd South Ozone Park, NY 11420
(516) 218-1297
LJ Realty Team Buy • Sell • Rent Equal Housing Opportunity
Comments