Broker Fee: What Every Buyer's Agent Must Know

🏡 Exclusive Right to Buy BUYER AGENCY Contract
Section 7 - BROKER FEE

How Agents Get Paid & How to Protect the Brokerage

Initial Only ONE Option

When completing the Buyer Agency Agreement, the buyer must initial only one method of compensation under BROKER FEE. This defines exactly how the broker will be paid — and prevents conflicting obligations.

✅ Carolina Elite Standard:
Always select Option 1 — _____ % of the gross purchase price of the property.
This should be used 99% of the time.
Flat-fee or alternative structures require prior approval from the Broker-in-Charge.

Why “% of Gross Purchase Price” Is Preferred

Adjusts automatically with the sale price

Keeps compensation transparent and easy to verify

Establishes a clear, enforceable basis for payment

Protects both the agent and the brokerage

💡 Tip: Review the agreed-upon percentage with the buyer before submitting any offer.

Direct Seller / Listing Broker to Buyer Broker Compensation

This section asks whether the buyer authorizes the broker to request payment directly from the seller or the seller’s broker at closing.
If the buyer authorizes, the broker may negotiate payment in the purchase contract or a separate written agreement.

⚖️ Compliance Reminders

Any seller-paid amount reduces what the buyer owes.

The broker cannot exceed the total fee listed in Section 7.

Keep every written compensation agreement in your Dotloop or office file.

🧩 Example:
Buyer signs a 3 % agency agreement.
During negotiations, buyer requests the seller to contribute 2.5 % toward closing costs.
Buyer remains responsible for 0.5 % unless the form is amended to reflect the amount you received.

Why This Section Matters

Defines when and how you’re legally entitled to compensation.

Ensures transparency now that automatic cooperation no longer exists.

Keeps Carolina Elite fully compliant with SC License Law § 40-57-135

✅ Quick Compliance Checklist

☑ Only one Broker Fee option initialed
☑ Default to % of gross purchase price
☑ Explain the Direct Seller/Listing Broker authorization
☑ Document any seller-paid compensation in writing
☑ Clarify buyer responsibility if seller declines to pay

💬 From Melissa Bissett, BIC

“Section 7 is the foundation of your compensation and our brokerage protection.Review it with confidence, document it correctly, and always lead with transparency.”

706 North Cedar St
Summerville, SC 29483, US