When you start shopping for a home in Utah, one of the most important first steps is understanding the buyer representation agreement. This document defines your relationship with your real estate agent, outlines what services you’ll receive, and clarifies how your agent is compensated. In today’s market, clarity matters. Without a signed agreement, you may be entering the process without full protection or transparency.
As of August 17, 2024, new rules stemming from the National Association of Realtors (NAR) settlement require written buyer-broker agreements in many cases. This makes it even more critical for Utah buyers to know exactly what they’re signing. In Utah, state law also governs how exclusive brokerage agreements are handled and what rights you have as a buyer, as outlined in Utah Code §61-2f-308. This article walks you through how buyer representation agreements work, what to look out for, and how to make the most of your agent-buyer relationship.
What is a Buyer Representation Agreement?
A buyer representation agreement is a contract between you and your real estate agent stating that your agent will represent your interests when buying a property. It outlines the services your agent will provide, how they will be paid, and the duration of the agreement. According to the NAR Consumer Guide, this agreement “outlines the services your real estate professional will provide you, and what they will be paid for those services.”
In Utah, you may see terms like “exclusive buyer broker agreement” or “buyer agent agreement.” Utah law defines an “exclusive brokerage agreement” as one that gives the principal broker the sole right to act as your agent.
Why This Matters to Utah Buyers
Signing a buyer representation agreement protects you in several ways. First, it formalizes your relationship so your agent is legally obligated to advocate for you. Second, the agreement clarifies payment so you know how and when your agent is compensated. Third, it creates accountability by clearly stating what your agent will deliver.
Because of the national changes from the NAR settlement, your agent will now require your signature before certain services, such as scheduling showings. Knowing this ahead of time gives you confidence walking into home tours.
Key Terms You Should Understand
When reviewing your agreement, pay attention to these essential elements:
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Term: How long the agreement remains in effect and how it ends.
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Scope of services: What your agent will do for you, such as searching properties, negotiating offers, or coordinating inspections.
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Compensation amount or rate: New rules require that compensation be clearly defined and objectively stated, according to the NAR’s Written Buyer Agreements Guide.
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Exclusivity: Whether you are committed to one agent and what the implications are if you work with another agent.
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Termination clause: What happens if you or your agent decide to end the agreement early.
What the 2024 NAR Settlement Changed
The landmark settlement brought several key changes that affect buyer representation agreements nationwide, including Utah. Some of the major changes include:
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Written buyer broker agreements are required in most situations where agents perform services for buyers.
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MLS listings can no longer display blanket offers of buyer agent compensation. Buyers and agents must now negotiate and document compensation directly.
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Buyers must receive full disclosure of how much their agent will be compensated before any professional services are provided.
For Utah specifically, the Utah Association of Realtors updated their forms to reflect these changes, including requiring the buyer agreement to be signed before home tours in many instances. What this means for you as a buyer is that the process has grown more transparent, and your rights are now more clearly defined.
How to Negotiate Your Buyer Agreement
Approach your agreement as you would any important contract. Keep these steps in mind:
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Start early: Discuss the agreement with your agent at your first meeting so you are comfortable with the terms before showings begin.
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Ask for clarity: Make sure compensation is spelled out. It cannot simply say “whatever the seller pays,” as vague language is no longer allowed.
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Understand the term: Some agreements tie you to one agent for six to twelve months, so be sure the duration matches your timeline.
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Retain flexibility: Ask about how the agreement ends if you decide to switch agents or pause your search.
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Align it with your goals: If you’re exploring neighborhoods like Sandy, Draper, or Herriman, make sure your agent’s services align with your goals. Also check out my article on How to Evaluate a Home’s Lifestyle Fit to ensure your agent understands your priorities.
Common Mistakes to Avoid
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Signing without understanding: Never sign the agreement just to begin touring homes. Make sure you understand all terms first.
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Allowing vague compensation terms: If the payment structure isn’t clear, the agreement may violate NAR’s updated practices and leave you unprotected.
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Long-term commitments: Some buyer agreements last up to a year, which may not suit your needs if you’re planning a shorter search.
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Touring without representation: If you haven’t signed an agreement, you may only be a “customer” and not a “client,” meaning you have fewer protections.
The Buyer Agreement and Your Decision to Use an Agent
You may be wondering whether you must sign a buyer representation agreement. The simple answer is: while you are not required under Utah law to sign one just to visit an open house, once an agent begins performing services like scheduling showings or advising on offers, the agreement is required. Utah law states that an agent must have a brokerage agreement when acting as your representative.
Working with a trusted Utah real estate professional through Nick Booth Real Estate ensures you’re fully represented, informed, and protected. For a deeper breakdown of the process, visit my Buyer’s Guide.
Final Thought
Signing a buyer representation agreement may feel like an extra step, but it’s one of the most important moves you’ll make when buying a home in Utah. It protects your interests, sets expectations, and clarifies your relationship with your agent. At Nick Booth Real Estate, I believe informed buyers make the best decisions, and that begins with a clear written agreement.
If you’re thinking about buying in Utah and want to walk through a buyer representation agreement together, I’d love to help you understand every part of it. Reach out anytime, and let’s make sure your next move starts with confidence.
