Starting in 2024, a new requirement mandates that a Buyer Agency Agreement be signed before an agent and buyer can work together. This agreement outlines the commission structure, with buyers acknowledging the commission earned by the agency and committing to cover any shortfall if the listing they’re interested in offers a lower commission.

This change could have significant implications for buyers, especially when it comes to pre-approval. If all of a buyer’s assets are tied up in their purchase, they may face challenges. They could miss out on certain properties or risk becoming overextended if there’s a communication breakdown regarding commission differences.

Buyers and agents must now be more diligent than ever to ensure that commission-related details are clearly understood and accounted for during the pre-approval process.