Agent receives a referral from an agent out of Florida. The agent has a signed Buyer Agency Agreement with a client and properly registers the buyer with a new construction builder on the buyer’s first visit. The agent has written confirmation from the builder’s site agent that the registration was accepted.

Later, the referral agent introduces the same buyer to a different local agent, who shows the buyer a property and submits an offer that ultimately falls through. After that deal collapses, the second agent takes the buyer back to the same new construction community, despite the buyer already being registered with the original agent.

The buyer now requests a release from the original Buyer Agency Agreement and wants to move forward with the new agent. The original agent believes their registration and agency agreement should protect them.

 

When a buyer has an active Buyer Agency Agreement and has been properly registered with a builder, the original agent holds significant protection regarding commission entitlement.

In addition, this scenario raises potential concerns under the REALTOR® Code of Ethics, Article 16, which prohibits REALTORS® from knowingly interfering with an existing agency relationship.

If the second agent knew, or reasonably should have known, that:

- The buyer was represented, and

- The buyer was already registered with the builder under another agent

then continuing to work with that buyer in the same new construction community may constitute improper interference, depending on the facts.

That said, not every situation automatically equals an ethics violation. The broker must evaluate:

Whether the Buyer Agency Agreement was still active

Whether the second agent had knowledge of the representation

Whether the buyer initiated contact independently

Whether the builder recognizes and honors the original registration

Buyer requests for release must be handled carefully. A release from agency does not automatically eliminate commission protections tied to prior registration or contractual rights.

 

Registered the buyer with the builder promptly

Secured confirmation of registration

Had a valid Buyer Agency Agreement in place

Immediately notify the broker of the situation

Provide written proof of registration and agency

Allow the broker to contact the builder directly

Document all communications

 

💡 Broker Tip:
Best practice: agents should always register their buyers with every builder before showing, even if they think it’s a casual visit. Registration protects agency, commission, and avoids disputes before they ever start.

Article 16 is about knowledge and intent.
If you know a buyer is represented, you don’t step into the deal. And if you’re unsure, you ask before you act.