Commission & Presenting Offers Post NAR Settlement

It's critical that you always have a Buyer Rep Agreement signed prior to working in a full capacity for any buyer. The NAR Settlement requires that you have a BRA signed in order to show a home, and it makes sense to use ABOR's Limited Service Agreement until you've built rapport with your client and you're ready to enter into a full BRA.

In June 2024, ABOR and TXR each released their own versions of a Commission Addendum, which clarify the process of making offers post-settlement.

• ABOR Form: commission addendum here or at ABOR's website here.
• TXR Form: Download here or available on Zipforms.
• Click here for all acceptable forms and their financing implications.

Offer Process:

1. Again, it's critical that you have a Buyer Rep Agreement in place well before the offer process. This is both a policy and a practice that is critical to your business.
2. We are agnostic about which form is used or how we are paid. We do care that we're paid what the BRA states, and it's typically important to our buyers that the seller pays to facilitate financing.
   1. The Unlock form is very clean and easy and requires no other form.
   2. The TXR-2406 Form is more complicated.
3. When your client is interested in making an offer, you should already plan to immediately contact the listing agent as part of our Submitting Impeccable Offers process.
4. When you contact the agent, ask the agent which form they prefer and how they would prefer you fill it out. Complete the form how they prefer, as long as it doesn't conflict with your pay or your client's goals. Most of the time it won't be problematic.

Edge Case and Problematic Agents

Most agents are good, but some are not. Agents can be non-communicative (they never text back or pick up the phone) or unreasonable. In those instances, complete either Commission Addendum as it should be and present it as part of the offer.

1. Make sure and reference the Commission Addendum on the main contract (Par 22 on the 1-4 Family). This makes it part of the contract and your offer is contingent upon it.
2. Complete either the ABOR or TXR form.
3. See below for step by step instructions.

Step #1 - Add the Commission Addendum to the Contract

Step #2 - Complete either the ABOR or TXR Form

It's important to note that the TXR form also requires the TXR-2402 "Compensation Agreement Between Brokers" if Par D(1) is checked. If Par D(2) is checked, then it requires the TXR-2401 "Compensation Agreement Between Broker and Owner".

The Unlock form is very straightforward and clean but it requires the listing agent to disclose how much they are earning, so many LAs will not like this form.