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FAQs on the Buyer Broker Employment Agreement

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Q: What is a Buyer Broker Employment Agreement (BBEA)?

A: A Buyer Broker Employment Agreement establishes an exclusive client/agent relationship between us. It outlines my commitment to represent you in finding and negotiating the best terms for a property. It states a clear start and finish date, specifies how my compensation is paid and ensures I work solely for your benefit, providing priority access to a broader range of properties, including those that may not be publicly listed

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Q: Am I required to sign a Buyer Broker Employment Agreement?

A: As of August 1, 2024, every Real Estate Agent in Arizona is now required to have a Buyer Broker Employment Agreement signed before showing a property to a client. The fines for the agent showing a home without a signed Agreement are automatic, per home shown, and as follows:

  • 1st Violation: $500 (possible 1-year MLS access suspension)
  • 2nd Violation: $5,000 (possible 2-year MLS access suspension)
  • 3rd Violation: $15,000 (possible permanent MLS access revocation)
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Q: Will I incur any costs by signing the BBEA if I do not purchase a property?

A: No, there is no retainer fee or cost to view a property. I am compensated only when you purchase a property, and my fees are negotiable. If the seller does not offer to cover my compensation, by signing this agreement, you authorize me to negotiate my compensation with the seller’s agent, and you agree to pay the remaining amount, if any, as specified in the agreement.

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Q: Can I cancel the BBEA if I am not satisfied with your representation?

A: Yes. By signing this agreement, you are committing to working exclusively with me in your property search within the specified dates and terms of the Buyer Broker Exclusive Employment Agreement. However, if you are dissatisfied with my service, you can terminate the agreement with written notice, subject to certain conditions regarding properties previously shown.

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