Will Miami Condo Buyers Have To Pay Retainer Fees To Work With Brokers?
Following the National Association of Realtors® $418 million settlement to resolve "antitrust claims," the NAR has revised its policies to promote better transparency.
Don’t be surprised if Miami condo purchasers are increasingly asked for upfront retainer fees from buyer brokers.
The nonrefundable retainer fees would be over-and-above any commissions the buyside brokers earn in working with consumers to purchase units.
Language about the retainer fees - which are optional, negotiable and prepaid - are getting great placement in the newly revised “Exclusive Buyer Brokerage Agreement” from the Florida Realtors® association.
Retainer fees are the No. 6 topic - situated between “Consumer’s Obligations” at No. 5 and “Compensation” at No. 7 - in the 14-topic, three-page agreements to be agreed upon by the buyers and the Realtors®.
Retainers are one example of the way Florida’s residential real estate industry changed this week with the implementation of rule modifications resulting from the National Association of Realtors® $418 million settlement of “antitrust claims.”
The changes - which are the result of “claims brought on behalf of home sellers related to broker commissions” - went into effect throughout the country on Aug. 17, 2024, for the more than 1.5 million-member organization, according to an NAR statement.
Juana Watkins, the general counsel for the Florida Realtors® association, recorded a nearly 27-minute video to explain the changes. The video was posted July 30, 2024, on YouTube under the account name “Florida Realtors Tube.”
The repercussions are huge in Florida where the statewide association has some 238,000 members. Of that, more than 60,000 members belong to the Miami Association of Realtors® and an additional 42,000 members are part of the Broward, Palm Beaches & St. Lucie Realtors® association.
To provide some insight into whether condo buyers will be expected to pay retainer fees to brokers, we are going to let Watkins explain the details in her own words in this short video clip.
Retainer Fees
Watch the short clip: https://youtube.com/clip/UgkxH1PEpkgDUd--qXyR2TGVe_c5NiCH_cIa?si=3mV4SKSBIqxU53yP
If you don’t want to watch the clip, here is a transcript of Watkins’ statement:
“Now, paragraph 6 provides for the parties to agree to an optional retainer,” she said. “It is a nonrefundable sum for services provided by the broker to the consumer. The agreement specifies that the sum is earned and payable upon execution of the agreement to help reinforce the nonrefundable nature of the fee.“
If you have any additional questions, we suggest you reach out to your attorney or Realtor®.
It is worth noting, this is a link to watch Watkins’ entire presentation regarding buyer-broker agreements following the August 2024 implementation of the NAR settlement.
We will have additional reports examining this subject in the days, weeks and months ahead.
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