Why You Must Sign Before Seeing a House. Yes, this is completely true an agent can receive a large fine if they do not comply and ensure the legal form is signed by the client/home buyer.
Although A.R.S. § 32-2151.02(D) states that an agreement is “not required for a licensee to represent a party,” new MLS Rules (specifically ARMLS Rule 1.10) now mandate that a signed agreement must be in place prior to touring a home. This is designed to ensure you understand exactly what you might owe your agent before they perform work for you.
Common Arizona Forms
The Arizona Association of REALTORS® provides two main ways to comply:
- Buyer-Broker Agreement to Show Property: A limited, often non-exclusive form used for a single day or specific set of addresses. Some agents will not use this one day showing because it can be misused by clients who already have an agent. Brian Inman, does not use this one day form!
- Buyer-Broker Exclusive Employment Agreement (BBEEA): A broader contract for a long-term relationship.
Do you need help understanding the compensation section of the agreement, or are you concerned about the exclusivity of the document you were given?
In Arizona, the specific law governing these documents is Arizona Revised Statute (A.R.S.) § 32-2151.02, which defines and sets the requirements for “real estate employment agreements”.
While this statute has long existed to ensure brokers get paid, its enforcement as a mandatory requirement before showing a home stems from the 2024 National Association of REALTORS® (NAR) settlement.
ADRE Requirements under A.R.S. § 32-2151.02
The Arizona Department of Real Estate (ADRE) and state law require that any buyer-broker agreement must:
- Be in Writing: It must be written in clear and unambiguous language.
- Set Material Terms: It must fully disclose all compensation terms, which must be a specific, “ascertainable” amount (e.g., a flat fee or 2.5%) rather than open-ended.
- Have a Definite Duration: It must include a specific start date and expiration date.
- Be Signed by All Parties: Both the buyer and the broker (or their authorized representative) must sign it to be valid.