Before touring certain homes with a real estate professional, a buyer may be asked to sign a Property Showing Agreement. The Five Star Real Estate form you provided is designed to allow a Realtor to consult with a buyer about specific properties and assist in locating and showing properties while documenting the terms under which those showings will occur.
One of the most important things to understand about this particular agreement is what it does not do. The form specifically states that the Property Showing Agreement does not establish an agency relationship and that the buyer is not becoming a client by signing it.
What Is a Property Showing Agreement?
The Property Showing Agreement establishes the terms under which the Realtor can consult with the buyer about specific properties and assist in locating and showing properties. The form states that it is intended to comply with the requirement for a signed agreement before showing a listed property.
Unlike a Buyer Agency Agreement, this particular form specifically states that the buyer and Realtor are not entering into an agency relationship and the buyer is not a client.
What Does the Property Showing Agreement Allow the Realtor to Do?
According to the form, the agreement allows the Realtor to consult with the buyer about specific properties and assist in locating and showing properties.
The scope of this agreement is therefore limited to the services described on the form. If the Realtor is going to provide services beyond those described in the Property Showing Agreement, the form says the buyer and Realtor will enter into a separate agreement covering those additional services.
Does the Property Showing Agreement Create Buyer Agency?
No. Not this particular agreement.
The form explicitly states that it does not establish an agency relationship. It also states that the buyer and Realtor agree they are not entering into an agency relationship and that the buyer is not a client.
This distinction is important because the Buyer Agency Agreement, which we’ll explain separately, does establish an agency relationship and addresses representation and additional services.
Does the Buyer Pay a Fee Under This Agreement?
The Property Showing Agreement states that the buyer will not owe or pay a fee for the showing terms indicated in the agreement.
If additional services are going to be provided beyond those covered by the Property Showing Agreement, the form says the buyer and Realtor will enter into a separate agreement. Any fee or commission agreed upon for those additional services is not set by law, is fully negotiable, and is to be documented in that separate agreement.
What Properties or Dates Does the Agreement Cover?
The Property Showing Agreement contains a section called Property Showing Terms.
The form provides two options that can be used to define the showing arrangement:
Showing Date Range
A specific period of time can be entered.
Property(s)
Specific properties can be identified.
The form also provides an Additional Terms section where other agreed-upon terms can be documented.
This means you should look at what has actually been entered on your agreement to understand the showing terms you and the Realtor are agreeing to.
What Happens If You Want the Realtor to Represent You?
The Property Showing Agreement itself does not establish buyer agency. If the Realtor is going to provide services beyond those identified in this agreement, the form states that the buyer and Realtor will enter into a separate agreement for those additional services.
One such document is the Buyer Agency Agreement, which we’ll cover separately in this Real Estate Forms & Documents series.
What Are You Acknowledging When You Sign?
At the bottom of the Property Showing Agreement, the Realtor and buyer sign and date the document.
The form states that by signing, all parties acknowledge their understanding of and agreement to the terms contained in the Property Showing Agreement.
That makes it important to review the showing date range, properties, additional terms, and any other completed portions of the agreement before signing.
More Helpful Real Estate Forms Pages
- Agency Relationships Disclosure
- Michigan Regional Purchase Agreement
- Buyer Agency Agreement
- Affiliated Business Arrangement Disclosure
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