If you’ve bought or sold property in California, you know real estate comes with its share of paperwork—and acronyms! One of the newest additions is the BRBC, short for Buyer Representation and Broker Compensation Agreement. Whether you’re new to real estate or a seasoned investor, here’s why it matters.
As of August 17, 2024, the use of the BRBC has become mandatory in California for REALTORS® when submitting offers. This legal document formalizes the relationship between you (the buyer) and your agent. It outlines how your agent will represent you, the scope of their services, and—most importantly—how they’ll be compensated.
This shift to making the BRBC mandatory stems from the historic settlement of the Sitzer-Burnett lawsuit, which reshaped real estate compensation practices nationwide. With buyers’ agent commissions no longer automatically baked into transactions, the BRBC ensures transparency and clarity for all parties involved.
The BRBC isn’t a one-size-fits-all document and can be customized to your needs:
- Exclusive or Non-Exclusive: Work with one agent or explore multiple options.
- Single Property or Multi-County: Focus on a specific home or cast a wider net.
For first-time buyers, the BRBC provides peace of mind and clear expectations. For seasoned investors, it streamlines transactions and solidifies your partnership with your agent—a key ally for building your portfolio.
Have questions about the BRBC or how it affects your next purchase? Let’s connect—We're here to help!