Realtor buyer agreements now required
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The real estate industry is vibrant and strong in Iowa. When buying or selling a home, REALTORS® guide more than 86% of American homebuyers through the sometimes complex real estate process.
Recent lawsuits and their pending settlements at the national level have propelled the state of Iowa real estate landscape to shift. Iowa REALTORS® worked proactively with stakeholders and legislators over the past year to implement changes that will bring more transparency to the real estate transaction.
As of July 1, all real estate licensees in the state of Iowa are now required by law to use a buyer agreement with clients. This mandate is part of the Real Estate Transparency Act, which passed the Iowa legislature unanimously and on a bipartisan basis.
A buyer agreement is a binding contract between a buyer and a real estate agent that outlines the terms of their collaboration. It sets forth clear expectations of the relationship, the work the REALTOR® will perform, and an agreed upon compensation between the parties.
While buyer agreements have always existed, and many agents have used them for their entire careers, these agreements are now mandatory in Iowa.
When going through the home buying process, you will need to have a buyer agreement signed with your agent before touring a property. These agreements are required before a showing takes place. This includes in-person and live, virtual showings of properties.
However, an agreement does not need to be signed in order to attend an open house or to receive an automated email of available listings from your chosen REALTOR®.
Ask your chosen REALTOR® about their services and compensation prior to beginning the home buying process.
Commission for home buyers and sellers has always been and continues to be an agreed upon decision between the parties.
Properties listed in a multiple listing service (also known as MLS) will no longer include an offer of compensation to a buyer’s agent starting in August. This is one reason that the portion of the buyer agreement around compensation is such an important discussion between you and your REALTOR®. Though cooperative compensation will no longer be shown on the MLS, it is still an option for sellers.
