NEW 2024 - Buyer Representation and Broker Compensation Agreement - CAR Form BRBC Required August 17

[@BalboaRealEstate]

UPDATE: Paragraph 2B(1) do not check SFR, or else it will be excluded!

[@MicheleFrancineREALTOR]

OMG! Thank you so much so tricky!!!! So don't check the others either for example if my buyer is buying a condo.

[@rubyrocha-ym2jp]

You stick to the point short and brief. I just wan to tell you, your videos are the best!!!

[@BalboaRealEstate]

Thank you

[@mikepajouhesh]

Again, Thank you for the great coaching and the simplicity of your explanations. You guys run an awesome business. 👍👍👍👍👍👍👍👍💯💯💯

[@AGCVEGAS]

Excellent video. Clear, concise, and helpful. Well done.

[@MrBayAreaRealEstate]

Bravo! Well explained and great job showing it's really not very difficult to comprehend. It's actually an improvement from the current buyer representation agreement we have in CA (which many agents don't use but they should have been). It's been comedy to see so many agents and people in CA and around the country criticize this CAR agreement for being "too long" and "repetitive" with "24 sections" about compensation. People clearly don't get it, the whole point why the lawsuit happened was because the consumers complained about commissions, not being aware, no transparency, etc. So therefore, the solution for that is to make the points redundantly obvious in our agreement. Which CAR has done and this document is not difficult to understand. For a consumer, I can understand if they are overwhelmed but for an agent to feel that way, that agent needs to go find a new line of work if that's their case. Those preaching for 1-2 page documents are simply lazy and the point of redundant transparency based off the settlement flys over their head. Thanks again for this video and exhibiting how simple the new CAR agreements are.

[@albundy3929]

your best video yet. you're gerting really good at moving along and no supurluous words.

[@netlifetoday5193]

Fantastic explanation. Thank you.

[@HeatherGrant-Minchen]

Nice presentation, I watched both and you did amazing.

[@IsmailSmith-c7t]

Great Video! I had a question regarding the counties served section on the agreement. If the client chooses a new county that is not on the agreement, will I need to sign a new agreement with that county included? While reading the agreement it is apparent that if the county is not in the contract, that agent is not entitled to an exclusive relationship with the client in that region. Correct? Thank you

[@BalboaRealEstate]

Yes, you need to do a MT-BR form and add that county. This is why you want to be as broad as possible with the original document. I there is even a chance of an area you should write it in.

[@roxanaelbahou219]

Thank you for this video. I’m seeing BRBC’s with just G(2) completed with no comp stated. Why are brokerages encouraging this?

[@BalboaRealEstate]

Any brokerage encouraging that is dumb and reckless.

[@spldaisy]

Thank you again!! Do we need to fill buyer’s investigation for every home we tour now?

[@BalboaRealEstate]

No, the buyer just needs to sign one. Leave the address blank or write TBD

[@DriveForShow]

Another great tutorial… Agree with you…Confirmation of compensation should auto populate. CAR will end up changing this.

[@minare2024]

This was so helpful thank you! What if you’re showing 4 properties to your buyer? Do you need to fill out a BIA form for each individual property ?

[@BalboaRealEstate]

No, just leave the address line blank.

[@jeffl.dillard8681]

In Florida, if a real estate agent tells you you have to sign any agreement before you can look at the property, especially an Open House, get that agents name and info and then contact the Florida Real Estate Commission (FREC) and file a complaint! They will investigate and if found guilty that agent will have their license revoked and the Broker will be sanctioned! There is absolutely NO law or requirement in Florida that says you must sigh any agreement to look at a property for sale or if you want to sell your property as a FSBO!!! Don’t let any real estate agent scam you!!!

[@BalboaRealEstate]

I have not heard of anyone REQUIRING a buyer to sign an agreement to view a property. If a buyer hires a realtor to view a property the realtor must have a representation agreement signed. A buyer can decline representation and figure it out on their own. They can still view properties. But if they have agents open up properties for them under the premise of being unrepresented but then later hire some random broker that did no work then it is the buyer scamming the agents.

[@FirstAmericanRE]

Great video as usual. 13 pages is a bit ominous. I think sellers will take the simplest form presented to them and the path of least resistance same for buyers. We need to keep these simple and self-explanatory.

[@BalboaRealEstate]

Yes, I agree. Simplicity as an element is completely ignored by CAR.

[@CategoricalImperative]

Gold, thank you.

[@conniesanchez534]

This video is so easy to understand thank you

[@MichelleWintersRealEstate]

Great Video! Thank you for sharing and being so easy to understand. Hypothetically speaking, You're a brokers buyer agent: (No BBRC is signed. Escrow opens Aug1st. Escrow closes Sept 1st. MLS states BAC 2.5%. Buyer is not comfortable signing BBRC after escrow is open.) Are you protected? Is there another route you can take to be protected?

[@BalboaRealEstate]

Yes, you are protected with the BAC on the MLS. Save the MLS sheet for your records and make sure escrow prepares commission instructions accordingly.

[@MichelleWintersRealEstate]

@@BalboaRealEstateThank you very much 😊

[@inmyfreetyme]

Appreciate you uploading this video. I watched it from beginning to the very end and Subscribed to your channel also. Good to get ahead of the game. Aug 17th is just around the corner.

[@BalboaRealEstate]

Thank you for the compliment and subscription. I will be updating info regularly to help make the Aug. 17 transition easier.

[@moreofmyfreetyme]

@@BalboaRealEstate Thanks again. U R very welcome! Looking forward to all your updates. Preparation is key. 😊

[@amandanelski1958]

Thank you from LA!

[@estrella6598]

Could you clarify which address should be listed on the Buyer's Investigation Advisory form (part of the BRBC bundle)? I'm unsure what to include in that section since a specific house hasn't been identified when the BRBC is presented before showing homes.

[@BalboaRealEstate]

Just leave it blank or write TBD.

[@SuperPinkblossom]

I have a question if you’re the agent and buying on behalf of yourself do you fill this form as well?

[@BalboaRealEstate]

I would because as silly and redundant as that sounds, it's actually between you as a buyer and your broker, you just happen to be self representing, but your broker is entirely separate and therefore needs this BRBC form.

[@jaymousavi3338]

Thank you for explaining the form .

[@NateForReal]

Little confused on B(1)… by checking that box aren’t you excluding SFR from the agreement?

[@BalboaRealEstate]

You are correct sir. Good catch.

[@NateForReal]

@@BalboaRealEstate cool, thanks for confirming. Great video, very helpful in filling out my first BRBC this morning 👍🏼

[@creasxgfiyhrmer9716]

B(1) any box checked is excluded and where it says the following specified priperty only is where you fill in the type. Would you agree? ​@BalboaRealEstate

[@BalboaRealEstate]

@@creasxgfiyhrmer9716 Correct

[@creasxgfiyhrmer9716]

@BalboaRealEstate Thank you for the great info.

[@sihintessema3891]

You are always helpful. thank you very much

[@andrewlaw6941]

Why is there a field for "property address" at the top of the page on the "Buyer's investigation advisory" page?? Does not seem relevant since this is a buyer representation agreement that will apply to multiple properties & this Buyer's investigation advisory will be included again in any RPA offer.

[@BalboaRealEstate]

You are right. It's because they are just recycling the same one from the offer bundle and they are too lazy to edit it.

[@garonkiesel1646]

Great Video!! I'm just speaking hypothetically... Could an agent have a variable commission amount (section E2) and not be locked into a set amount by attaching a compensation schedule in section E1 that states compensation amounts may vary according to the property? Since compensation is "Negotiable" as NAR loves to say, why can't they differ by property? This amount should be negotiable with each offer if needed. I'm trying to anticipate how agents and brokers will work around a set commission amount.

[@BalboaRealEstate]

Love this idea. I do don't see why this wouldn't work. You'd just have to definitive amounts on the commission schedule. If it's too ambiguous it could be a problem.

[@garonkiesel1646]

@@BalboaRealEstate Ambiguity could definitely be a problem. I've seen agents weasel around every possible rule so I'm trying to get ahead of questions I know will be coming my way. Strange times in real estate.

[@Domy8d]

On page 2, there is a pre-checked box saying that we have attached the BCA (Broker Comp Advisory) .. where is that attachment? Is it included in the 13 pages you went over or is this a completely separate document we need to attach?

[@BalboaRealEstate]

Yes, it starts on page 10 of 13.

[@rikkid7308]

Question on E(1). If you’re acting as a dual agent will the 2.50% on your example limit you from collecting the additional compensation you get on the listing side (i.e 5.00% total)?

[@BalboaRealEstate]

No

[@vargashumberto1]

Thanks so much! Very informative

[@ericgutierrez4960]

Thanks! And how do you ask the seller to pay for the buyers agent compensation? What form needs to be filled out?

[@BalboaRealEstate]

Seller's payment of buyer's broker. Form SPBB

[@thelmapena7231]

Thank you, great information

[@swaranjeetkaur5157]

Thanks for the video. If a buyer cancel today, then only after 30 days they can sign another agreement with other agent? And for those 30 days, am I still working for them as the cancellation is only effective after 30 days? And my continuation period starts after 30 days of their cancellation of the agreement ?

[@BalboaRealEstate]

Yes, if you do an exclusive agreement, they must wait 30 days and continuation period starts AFTER the 30 days.

[@swaranjeetkaur5157]

@@BalboaRealEstate thanks a lot

[@dannyjoon1]

Thanks for a great job!

[@karenontiveros2172]

Question- When the seller is agreeing to pay for commissions and you’ve checked G3 on the contract. How would you proceed to fill out the BRBC - do you still state the percentage the buyer was to pay and then check G2 “buyer does not have sufficient funds” (Not necessarily the case) but is that the default answer ?

[@BalboaRealEstate]

Typically the BRBC is filled out long before the RPA, but the amount requested on the RPA/SPBB should match what is on E(1) of the BRBC. I don't see any scenario in which the "does not have sufficient funds" should be checked.

[@karenontiveros2172]

@@BalboaRealEstate thank you

[@ComradeAmir]

So from now until 8/13 (mls removal of buyer agent compensation) do we need to fill out a brbc and include an spbb with every offer we submit as a buyers agent or does the b.a.c. currently on the mls create just cause of compensation for buyers agents? Section 3G(3) of rpa has language changed so I’m confused

[@BalboaRealEstate]

The short answer is yes. Get a BRBC signed and then send a SPBB with your offer.

[@swaranjeetkaur5157]

@@BalboaRealEstate The offer will be contigent on seller paying to buyer broker if SPBB is included?

[@BalboaRealEstate]

@@swaranjeetkaur5157 Yes, but you must have a buyer rep. signed in order to use the SPBB

[@swaranjeetkaur5157]

@@BalboaRealEstate thanks a lot

[@ComradeAmir]

What’s still a grey area is the way old listing agreements and current offers of b.a.c. are structured is completely different from the spbb. Previously listing broker receives full commission and compensates buyer agent at their own discretion that the seller agrees to. Now, seller compensates buyer agent directly through spbb. So there can be a scenario now where a b.a.c. Is being offered through mls and the seller also agrees to spbb. Essentially the seller is double paying the buyers agent unless the listing agent understands they need to get dm-La signed and modifies the listing agreement to remove b.a.c. commission. Submitting spbb before commission is removed from mls makes things very confusing.

[@TheNinjaRealtor]

This was helpful, thank you!

[@JoanSabran]

Good video. One questions - If buyer signs this BRBC at 2.5 %to his agent, seller only pays 2%, buyer does not have the additional .5%. How is that addressed on this form and going forward in offer?

[@HelloRaisa]

Did you find out the answer?

[@JoanSabran]

No. As far as I understand it buyer is responsible. But if you check the box that buyer does not have the money to pay it sound contradictory to me. Answer answers are appreciated.

[@BalboaRealEstate]

The buyer is on the hook to pay the difference. An agent can amend the BRBC to eliminate the difference once the seller concession is agreed upon and finalized. Use the modification of terms form MT-BR.

[@GroverRealtor]

@@BalboaRealEstate This is a great option for buyers to get off the hook of any remaining commission, especially for those unwilling to pay any comm.

[@LordCruse]

Hello I just have a quick question to clarify if a buyer has to pay for example .5% to their buyer agent. Would that .5% have to come out of buyers pocket or can they add that into the loan?

[@BalboaRealEstate]

The buyer must pay, but the seller can credit the buyer and relieve the buyer from that fee.

[@LordCruse]

@@BalboaRealEstateyes but I had a potential buyer ask if they have to pay the .5 after negotiations, can they add that .5 into the loan?

[@BalboaRealEstate]

@@LordCruse The only way it can be added to the loan is by raising the sales price and having the seller increase the concession. Your other option is to waive the 0.5%.

[@swaranjeetkaur5157]

Thanks a lot,Thats really helpful

[@nperalta8804]

Great Job

[@dericdinh9926]

let say buyer made a mistake with previous agent due to wrong information. How can buyer cancel the previous BRBC and you are protected from procuring cause. Does that mean buyer has to wait for 30 days when previous forced them to sign the BRBC?

[@BalboaRealEstate]

If a buyer signed a BRBC with the 30 day notice, then it means the buyer must notify the broker but the actual cancellation doesn't take place for 30 days after the notice, so that buyer is stuck using that agent or broker in the meantime. The buyer can ask for a mutual cancellation and if the agent agrees then it can happen immediately without a waiting period. Without that, the buyer must wait 30 days.

[@ronniecegarner]

How many pages I’m seeing some have 4 pages lol

[@BalboaRealEstate]

BRBC itself is 5, the whole bundle is 13 - too much!

[@reytaji3334]

Thank you sir, I really appreciate your help as always!