In Minnesota, we have used buyer representation contracts for a few decades. Home buyers who are working with Realtors are required to sign an agreement with their agent. The agreement outlines the Realtor’s duties and how they will be paid.
As of last week, Realtors are required to have a written agreement with people who want to tour homes we listed for sale.
Previously, we could show anyone our listings without a contract or agreement with people who want a tour. On the plus side, this new practice may weed out the holiday housing tourists who are just curious and have no intention of buying a house.
On the other hand, home buyers hate to sign anything, making it a struggle. It is easier to sell a house if we can show it to anyone interested without paperwork. I do not plan on charging anyone anything for showing my listings but I could and the new system makes charging a fee easier.
The good news is that contracts or agreements buyers sign with Realtors do not require the signer to buy a house. You can sign an agreement with a Realtor to go house hunting but that does not obligate you to buy a house.
