Buyer Representation Policies & Best Practices

Buyer Coverage When You Are Out of Town


Policy for Company (Brokerage/ Company Generated) Deals | Best Practice for Personal Deals

If you have a lead that is new or you have been communicating with, but have not physically met the client before and this would be your first in-person interaction, the client must be handed off to another agent.

  • For company-generated leads, the client must be handed off through a reassignment. This is considered policy.  
    • Please ensure that this is notated in FUB.  
    • Please ensure to contact Cody or Shawna prior to reassignment so that compensation can be outlined and determined PRIOR to reassignment
    • If you haven't met the lead and have only performed a miniscule amount of work, then you likely aren't entitled to any compensation as it was a company generated lead.
  • The hand off process:
    • Call the client and explain the situation.  Offer a 3-way call with the newly assigned agent.
    • Send a follow up email introducing their new agent to them and advise that future communication and negotiations should be performed with this new agent

  • For personal/ sphere deals, this typically means referring the client to another agent. This is considered best practice.  It is up to the referring agent and accepting agent to outline the service expectations, client ownership, and compensation.  The brokerage will NOT oversee or interject in any disputes for sphere handoffs.  This should be worked out via written agreement with the other agent that is assisting you.

If you have met the client previously and have an established relationship, you may arrange coverage with another agent—typically someone within our office.

  • Brokerage Generated:  
    • Coverage is usually handled by offering payment or a percentage of the commission for multi-hour showings.  
    • For quick showings, this may be handled as a favor or through an informal agent partnership, if applicable.
  • Sphere deals— this should be worked out between the agents.  Again, the brokerage will not interject on any sphere deals.

Any coverage arrangement should be confirmed in writing via email or text so all parties have a clear reference moving forward.


Buyer Rep Agreements (Policy & Best Practices)

This is policy for company deals & best practice for personal.

Due to the commission lawsuits of 2023, it's important to be transparent about your commission and present a buyer rep agreement early in the process (preferably during a Buyers Agency Consultation), or if necessary, at the first showing.


Here is our process:

  1. Use our Buyer Rep Agreement, which is easier to understand and is less intimidating.
  2. Read and understand the buyer rep agreement. We have an easy cancellation policy because we want clients to work with us because they want to work with us. Note, it is most common to get, 30,60,90, or 180 day agreements.   Longer agreements may be effectuated but they cannot be longer than 365 days.  If a buyer wants to terminate their agreement, they can do so by sending us  a simple email or text message.
  3. Introduce the agreement early in the process. Our FUB email template "LCQ #4 Buyer Rep Agreements" stays updated and is a great template to leverage.
  4. Build rapport with your client! If necessary, sign a one day, non-exlcusive agreement.  Also let them know they can cancel the agreements any time.


Escalation Clauses (Policy)

If you are utilizing an escalation clause and you've been in real estate less than one year and/ or have never used one, please contact senior management.  The stakes are high for all involved- for buyers, sellers, and agents.  There is a lot of money at stake for the seller and possibly the buyer, but more importantly, a highly desirable property for that buyer.  Many agents in our MLS (even experienced agents) misinterpret and incorrectly use Escalation clauses.

Sending Any Document for Signatures

Any time you send any contract (purchase, listing agreement, sdn, etc...) for signatures, you want to first send it to your clients to review in email. When you send the email, bullet point the highlights of the document and finish by saying "In the interest of time, I'm going to go ahead and set this up in Dotloop, but please let me know if you have any questions or concerns." You're communicating that you're here to help them understand the contract and that you're not pushy.


Additionally, offer a Zoom consultation covering the offer and/ or contract.   I would highly encourage recording these meetings so that the buyer can re-watch the meeting, but more importantly, for your protection as an agent.


Sending a quick video of a screen recording with the offer and highlighting the main points, is also a great way to help the client understand the offer and ensure it is documented that you covered necessary and pertinent points of the offer.