Written Buyer Broker Agreement Rule Now in Effect
What You Need to Know
Effective July 21, 2025, a new rule has officially been added to the SWMLS Rules and Regulations regarding written buyer agreements, including the Buyer Broker Agreement. This change was approved by the SWMLS Board of Directors and ratified by the GAAR Board of Directors on June 18, 2025.
As part of our continued efforts to uphold professional standards and comply with the terms of the national settlement, SWMLS staff now have the authority to request copies of written buyer agreements (such as a Buyer Broker Agreement) if a formal complaint is received. This mirrors the existing policy for seller-side agreements.
What This Means for You
- If a complaint is filed, you may be asked to provide a written buyer agreement.
- You will have 1 business day to submit the requested documentation.
- SWMLS will no longer issue warnings for non-compliance starting July 21, 2025.
New Fine Structure
Failure to provide the requested agreement within the required timeframe will result in the following escalating fines:
- First violation (within a 12-month period): $500
- Second violation: $1,000
- Third and subsequent violations: $5,000
- If a Participant or Subscriber receives a third or subsequent administrative fine in a 12-month period, a tribunal hearing will be scheduled and both the Subscriber and their Participant (broker) will be required to attend.
Why This Matters
- This rule reinforces the importance of having written agreements in place with buyers, promotes transparency, and protects both the consumer and REALTOR® by clearly outlining the working relationship.
- Make sure your buyer agreements are in order and ready to produce if requested.
If you have questions about compliance or need a refresher on the rule, contact SWMLS Compliance at compliance@swmls.com.
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