Buyer Compensation Agreement (Transaction Broker)
The Buyer Compensation Agreement defines how the brokerage gets paid when working with a buyer. It allows you to remain a Transaction Broker while clearly establishing compensation. It must be signed before writing offers. If you do not use this agreement, you are not protected.
Download the Buyer Compensation Agreement (Transaction Broker)
The Buyer Compensation Agreement is a standalone agreement that defines how the brokerage is compensated in a buyer transaction.
It does not create a single agent relationship.
It does not change your agency status.
It exists purely to establish how compensation will be handled.
Required Related Documents
This agreement is used together with:
- Florida Brokerage Relationship Disclosure (Agency Disclosure) (insert link)
- Buyer Compensation Agreement (insert document link)
The agency disclosure defines how you represent the buyer.
This agreement defines how you get paid.
They are separate and both are required.
Why We Use This Instead of a Buyer Broker Agreement
Most brokerages use buyer broker agreements to define compensation.
That creates a single agent relationship.
At Easy Realty, we separate agency from compensation.
This agreement allows you to:
- Remain a Transaction Broker
- Avoid unnecessary fiduciary obligations
- Keep the transaction simple and flexible
- Still fully protect your compensation
You may operate as a Single Agent if needed, but it is not required to get paid.
When This Must Be Signed
This agreement must be signed before:
- Writing offers
- Negotiating compensation
- Submitting contracts
If it is not signed, compensation is not clearly defined and the brokerage is exposed.
What the Agreement Covers
The agreement defines four critical things:
- How much the brokerage is paid
- Where that compensation can come from
- How offers can be structured to achieve that compensation
- Who is responsible if compensation is not covered
Broker Compensation
The agreement establishes your compensation as:
- A percentage of the purchase price
or - A flat fee
This is agreed to upfront with the buyer.
Commissions are fully negotiable.
Sources of Compensation
The agreement allows compensation to come from multiple sources, including:
- Seller
- Listing broker
- Buyer
- Seller concessions
- Any combination of these
This flexibility is what allows you to structure deals effectively.
Seller-Paid Compensation Authorization
The agreement authorizes you to request that the seller pay your compensation in the offer.
This means:
- You can include commission requests in the contract
- The buyer has already agreed to this strategy
- The seller can accept, reject, or counter
This removes uncertainty when negotiating.
Seller Concession Structure Authorization
The agreement also allows you to structure compensation using concessions.
This means you can:
- Increase the purchase price
- Request a seller concession
- Apply that concession toward closing costs and/or compensation
This is a critical tool in competitive deals and when sellers resist direct commission requests.
Buyer Responsibility for Compensation
If compensation is not fully covered by:
- The seller
- The listing broker
- Or concessions
Then the buyer is responsible for the remaining balance.
This provision is what protects the brokerage.
Offset of Compensation
Any compensation received from any source reduces the buyer’s obligation.
This means:
- Seller-paid commission reduces buyer responsibility
- Concessions reduce buyer responsibility
- The buyer only pays a shortfall if one exists
This keeps compensation clean and transparent through the transaction.
Common Mistakes to Avoid
Not using the agreement
You have no defined compensation and no protection.
Using a buyer broker agreement instead
You create a single agent relationship unnecessarily.
Assuming the seller will pay
You must structure compensation into the deal.
Not explaining it to the buyer
The buyer must understand how you are being paid.
How to Explain This to a Buyer
“This agreement just defines how the brokerage gets paid. I work as a transaction broker, so it doesn’t change how I represent you. It just allows us to structure offers so my compensation is either covered by the seller or built into the deal.”
Bottom Line
This agreement is what protects your compensation.
It allows you to:
- Stay in Transaction Broker status
- Define compensation upfront
- Structure offers correctly
- Ensure the brokerage gets paid
If you are working with a buyer and this agreement is not signed, you are exposed.
Fix that before you move forward.