The Florida Showing Agreement: What You Are Signing Before a Home Tour

1. Parties and Time Period

You name yourself and the brokerage, and fill in the dates the agreement covers, ending at 11:59 p.m. on the last day. If you become interested in touring, negotiating, buying, leasing or otherwise acquiring any property listed on the form during that window, you agree to use the brokerage's professional services for it.

If you sign a contract to buy or lease one of the listed properties, the agreement automatically extends through the actual closing or lease execution, even if the end date passes first.

2. Property

The agreement applies only to the properties written in this section. Check that the list is what you expect. A short list tied to the homes you are actually touring is easier to understand than a broad one.

3. The Broker's Obligations

If you want to negotiate on a listed property, the broker agrees to use its professional knowledge and skills, make a diligent effort to show you the properties, assist you in negotiating and closing, and cooperate with licensees working with the owner to complete the transaction.

You also agree the broker may work with other buyers interested in the same property, and may tell competing buyers that an offer exists, as long as the broker does not reveal material terms of your offer without your written consent. The broker commits to follow the Fair Housing Act, and does not warrant or guarantee products or services from third parties it refers you to, such as lenders or inspectors.

4. Your Obligations

You agree to cooperate with the broker, including by contacting the broker immediately when you decide to negotiate on a listed property, telling any other licensee you have worked with about this agreement, giving accurate information to the broker and to third parties such as your lender and closing agent, consulting legal, tax and other professionals as needed, and making a good faith effort to perform your contract and close.

This section also has you agree to indemnify and hold the broker harmless from losses, damages, costs and expenses the broker incurs because of your negligence, misrepresentations or default on any agreement. Ask your agent to explain that line before you sign.

5. Compensation

This is the section to read most closely. The broker's compensation is earned when, during the term of the agreement (or any renewal or extension), you or anyone acting for you contracts to acquire real property as the agreement describes. Anything the broker receives from the owner or the owner's broker for services to you reduces what you owe under this paragraph.

The form lets the brokerage's fee for a purchase be written in as a flat dollar amount or as a percentage of the price, and for a lease as a flat amount, a percentage or a number of months' rent. Another line covers other types of acquisition, and if you enter a lease-purchase agreement, the leasing fee the broker receives is credited toward the amount due for the purchase.

The form says the fee is payable no later than the closing date in the sales contract, but that closing is not a prerequisite for the fee being earned. Ask exactly what that means in your situation before signing.

6. Retainer

The form has a line for a non-refundable retainer fee, earned and payable when you sign, on top of any compensation the broker earns. If a dollar amount appears here, make sure you understand what it covers and whether it is credited against anything else.

7. Additional Terms

A blank area for anything added to the standard form, including compensation for types of acquisition not covered above. Anything written here is part of the deal, so read it as carefully as the printed text.

8. Dispute Resolution

The agreement is governed by Florida law. Disputes go to mediation first. If a dispute then goes to court, the prevailing party is entitled to reasonable attorney's fees and costs, unless you and the broker both initial in the space provided to agree to binding arbitration instead. With arbitration, each side pays its own fees and costs and splits the arbitrator's fees.

9. Acknowledgment and Changes

You confirm you have read and understood the agreement. It can be changed only in writing signed by both sides, and electronic signatures are acceptable.

The form also states that brokerage commissions are not set by law and are fully negotiable, and that the broker may not receive compensation from any source that exceeds the amount or rate agreed to with you. The broker may receive separate compensation from the property owner for services to the owner, which you are not responsible for.