correcting misconceptions about buyer representation

Buyer Representation Agreements – Misconceptions and Corrections

Legal Update There are lots of misconceptions out there about the new buyer representation forms and especially a new provision that was added to the RPA in December 2022. This article attempts to correct some of those common misconceptions. Misconception # 1. Buyer representation agreements are required by law starting with the December 2022 release of new C.A.R. forms.FALSE. Buyer representation agreements are good risk management but are not legally required. Misconception # 2. New paragraph 3G(3) in the December 2022 RPA which asks the seller to pay a commission to the buyer’s broker is mandatory.FALSE. Paragraph 3G(3) is optional. If the box is not checked, it will not be part of the agreement. Furthermore, it is important to understand that the buyer can make this request only if two conditions are met: First, the buyer must have already entered into a written agreement to pay their own broker (Form...

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