Buyer Representation Docs: BRBC and PRSA Information
Per California law and MLS rules, a written buyer representation agreement must be signed BEFORE showing properties or submitting an offer for a client. These agreements must include (1) specific start and end dates, and (2) agreed-upon compensation for the Broker.
Realtors can use the Property Showing & Representation Agreement (PSRA) and the Buyer Representation and Broker Compensation (BRBC).
|
PSRA |
BRBC |
|
Condensed version |
Longer/comprehensive version |
|
Time limit is 30 days |
Time limit is 90 days |
|
Specific properties only (listed on the form) Maximum of 3 properties |
Types of properties and locations (ex: single family residences in Fresno) |
|
Non-Exclusive
|
Non-Exlusive OR Exclusive
|
|
Compensation rate set within agreement (ex: 3% of purchase price) |
Compensation rate set within agreement (ex: 3% of purchase price) |
For detailed information on how to complete these forms, check out this training video.
What About Compensation from the Seller?
Buyers can use the RPA to ask that the Seller cover part or all of the Buyer’s broker compensation. Section 3.G.3 on page 2 of the RPA provides space for the Buyer to make this request. Any amount the Seller pays is credited directly to the Buyer’s total obligation.
The Broker’s Compensation is fixed by the PSRA or the BRBC, so if a Seller offers to pay a lower amount, the Buyer is still responsible for the gap.
- Scenario A: If the Seller agrees to cover the entire amount you negotiated in your representation agreement, there is no gap.
- Agreed Commission (per BRBC): 3% ($15,000)
- Seller Contribution (via Purchase Contract): 3% ($15,000)
- The Calculation: $15,000 (Owed) - $15,000 (Seller Credit) = $0
- Result: The Buyer pays $0 out of pocket for your services.
- Scenario B: In this case, the Seller is only willing to contribute a portion of your fee, leaving a remaining balance.
- Agreed Commission (per BRBC): 3% ($15,000)
- Seller Contribution (via Purchase Contract): 2% ($10,000)
- The Calculation: $15,000 (Owed) - $10,000 (Seller Credit) = $5,000
- Result: The Buyer is responsible for paying the $5,000 gap at closing. This amount needs to be in cash, it cannot be financed by a lender.
When You Don't Need an Agreement (The Exceptions)
There are two situations where you aren’t required to have a signed PSRA or BRBC before working with a buyer:
- Public Open Houses: Since visitors are the public and not yet clients, no agreement is necessary.
- Realty Concepts (in-house) Listings: You may show an RC listing to an unrepresented Buyer in service to our Seller. This is allowed because you are coordinating the showing under your existing fiduciary duty to the Seller.