A “one-time showing agreement” or a Commission Agreement for Sale is between a home owner (seller) and the brokerage company. It is a written agreement in which the seller agrees to pay a commission to the broker for bringing a specific buyer if that buyer purchases his home.
The home seller signs the Commission Agreement for Sale, which identifies the potential buyer and guarantees the agent a commission should that buyer purchase the home. This prevents the buyer and seller from negotiating directly later and trying to avoid paying the agent’s commission.
This agreement works well when a Realtor wants to show a buyer a FSBO (For Sale By Owner) home that is not listed in the MLS. The seller must agree to pay a commission, usually half of what he would pay normally if he listed the home with an agent under an Exclusive Right of Sale Listing Agreement.
This agreement helps to expand the options of a home buyer and still allow them to be represented for no-charge by a licensed Realtor. If a home buyer sees a home that is a FSBO when he’s driving down the road, all he has to do is ask his real estate agent to call the seller and set up a showing appointment. The Realtor gets the home seller to sign a one-time showing agreement and then brings the buyer to view the home. If the buyer likes it, the buyer’s Realtor writes up the offer and presents it to the FSBO homeowner.
The commission is paid by the seller at closing. These types of sales are never entered into the MLS and only show up in the public records.
Mark C. Weber is a Naples Realtor, Broker & Owner of White Sands Realty in Naples, Florida. He is a 30+ year resident of Naples and specializes in finding people Naples homes on or near the beach and waterfront. If you are interested in Naples real estate or have a question about this article please contact him through Email or by calling 239-417-1115.
