arhome realty blog

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what you need to know about written buyer agreements

If you’re starting the process of buying a home today, it’s essential to understand some important new regulations around written buyer agreements. Keep reading to get a breakdown of what these updates mean and how they might impact your home-buying experience.

1. these agreements are a legal requirement.

Following the National Association of REALTORS®’ proposed settlement of litigation, written buyer agreements are a requirement between you and your Realtor®, and will become a legal requirement for all real estate brokers beginning January 1, 2024 in Illinois. These agreements outline the services your agent will provide during the home-buying process and clarify any financial obligations. While buyer agreements were already common in Illinois, they are now mandatory.

2. buyer agreements are negotiable.

Commission amounts were and will remain negotiable. Services provided and the agreement's duration are also negotiable. Talk to and interview experienced Realtors® to learn more about your options. Make sure you are okay with the terms before you commit to an agent you are comfortable with. Your agent may still negotiate for brokerage compensation to come from the seller.

3. the agreements sets clear expectations for homebuyers.

Buyer brokerage agreements help make the terms of your relationship clear from the beginning, minimizing the chance of surprises at closing and any confusion about who will pay your real estate professional and how much. They also set expectations on the services you’ll receive from your real estate professional, ensuring everyone is on the same page and well-prepared throughout the buying process.

4. agreements are legally binding.

Be sure to review the terms carefully before signing, as these agreements are legally binding and may not have exit options until the term is over. Keep in mind though that you are require to sign an agreement before a real estate professional of your choosing can work with you or tour homes with you. You are, however, free to attend open houses independently without a formal agreement.

As you begin the home-buying process, knowing the new requirements regarding written buyer agreements can empower you to make informed decisions and establish a solid working relationship with your real estate professional. With clear terms and expectations in place, you’ll be well-prepared to navigate each step of the process. By taking the time to find a real estate professional that best aligns with your goals, you can approach the market confidently and focus on finding a home that fits your needs. Always talk to an experienced real estate agent to know how to manage these new written agreements and what is required.