What to Know Before Signing a Buyer Agreement in Utah

Why you're signing one

Since August 17, 2024, agents who belong to the National Association of REALTORS® must have a written agreement with a buyer before touring a home with them. The change came out of NAR's nationwide legal settlement.

For Utah buyers, this wasn't a big shift. Utah agents were already using written agency agreements with their buyer clients before the settlement. What changed is that the agreement now has to spell out exactly what you'll pay.

What's in the Utah form

Most Utah agents use the Utah Association of REALTORS® Exclusive Buyer-Broker Agreement and Agency Disclosure. Once signed, it makes the brokerage your agent, with a legal duty to act in your interest. The current version:

• States a specific fee. It names the compensation you're obligated to pay. It can't be open-ended.
• Has an end date. The agreement can last one day, six months or any period you negotiate.
• Covers a county or a property. It applies either to a county or to a specific property, not both.
• Lists exclusions. You can exclude homes you're already working on with another brokerage.
• Allows a third party to pay. What you owe can be offset by someone else, usually the seller.

What you can negotiate

Brokerage fees aren't set by law, and the form says so. Everything below is open for discussion before you sign:

The fee

It might be a percentage, a flat fee or another structure. Ask your agent to walk you through what you'd owe at a few different price points.

The length

Not sure about an agent yet? Start with a short term, even a single day or a single property, and extend it once you're comfortable.

The scope

A property-specific agreement is a low-commitment way to work with an agent on one home before committing to a broader search.

Can the seller still pay your agent?

Yes. Sellers can't advertise buyer-agent compensation on the MLS anymore, but they can still pay it. Utah sellers can cover your agent's fee through concessions in the purchase contract, by paying your agent's brokerage directly, or by sharing the listing agent's commission.

The Utah Real Estate Purchase Contract (REPC) has a section for this. In Section 4.3(e), you can ask the seller to contribute toward your brokerage's compensation as part of your offer. Whatever the seller pays reduces what you owe under your agreement.

Questions to ask before you sign

• What exactly will I owe, and when?
• If the seller pays part of your fee, how does that change what I pay?
• Can we start with a shorter term or a single property?
• How do we end the agreement early if it isn't working?
• Which homes, if any, are excluded?

A strong agent will answer all of these without hesitation. If they can't, that tells you something too. Here's how to choose the right agent.