Making The Move

By Cheri F. Rosen

In most parts of the country spring is the most active time of year in the residential housing market. The children are finishing their current school year, and summer is a great time to pack up and make the move before the new school year begins. However, the end of summer in South Florida always seems to welcome an uptick in home sales, especially for those seeking to downsize as they age or perhaps just to warm up a bit in a vacation home prior to the arrival of the northern winter season. Although this year is certainly no exception, the demand for housing in Palm Beach, Broward, and Miami Dade counties has begun earlier than usual and is more robust than the past year or so. Often, outside forces greatly affect the housing market in South Florida, such as Covid did in 2020 through 2022. Home prices at that time were driven to break the records previously set back in 2008 when prices had reached a peak. This year, in addition to the expected southern migration, we are finding many New York City residents clamoring to get out of the five boroughs especially before November’s election. They foresee (as many seem to agree) a much greater demand for relocation following the impending election which will naturally result in elevated pricing.

So, if you are among those who are considering making the move, there are several things you should be aware of, especially if you have not explored the market for purchasing a house, villa, or condominium in the past year or so.

I’d like to take the opportunity to educate you on the legal changes as well as enticing programs that South Florida’s government has enacted within the past year and for the foreseeable future. As Sy Sims would often say, “An educated consumer is the best customer.” The three most relevant changes are:

The Exclusive Buyer Broker Agreement

The My Safe Homes program

The new Condominium Addenda

Perhaps the most important change that you should be aware of as a home buyer (regardless of the home type) is known as the Exclusive Buyer Broker Agreement. This agreement between a buyer and their real estate professional is a legal contract outlining the services your chosen realtor will provide you and what they will be paid for those services. Due to a class action lawsuit for homeowners that became effective as of August 2024, every perspective home buyer must contract with a licensed realtor before viewing any listed residential property for purchase. Since the court found that a seller was under no obligation to pay a buyer’s broker’s commission during a successful transaction, there should exist a legal document to determine the legal obligations of all parties. It should be noted however, that the sellers are certainly welcome to pay the buyer’s agent’s commission and that has still continued as common practice. Honestly, I have yet to encounter an instance in the entire previous 12 months where the sellers did not include the commission in the Listing Agreement. Every single home I have sold, representing either the buyer or the seller, in the past year has had a willing seller including the commission for the buyer’s broker. In fact, there is a provision within the Buyer Broker Agreement that states that the compensation received by the buyer’s broker from a seller or seller’s broker will reduce any amount owed by the buyer under the agreement.

Nevertheless, in order for you to view a home for purchase, your realtor must confirm, before any showing, that they have an executed Exclusive Buyer Broker Agreement with the prospective buyer with whom they are touring the property (even virtually).

There are many terms open for negotiation within the Buyer Broker Agreement such as the location of the properties, the length of time that the agreement will be in effect, and the commission that the buyer is willing to pay to the broker should a successful purchase result from the transaction. Most importantly, there is an exit clause which both the buyer and the broker may set terms for under mutual agreement prior to enacting the contract.

Finally, and of at least equal importance, a buyer may find out before ever even viewing a property whether or not the seller of any property under consideration has completed the recently released Seller Compensation agreement. That agreement from the seller is also a mandatory addition to the transaction which states the compensation that the seller is willing to put forth for the buyer’s broker.

As I mentioned, this is now a nationwide law and is carefully scrutinized during any transaction to make sure that it is properly in place. If you are engaging the services of a professional licensed realtor to assist and represent you in the process of purchasing a South Florida home (as of course you should), they will and must enter into an Exclusive Buyer Broker Agreement with you. If they did not beware! Of course, if you have not purchased a residential property in the past year or two chances are you are unaware of this new and essential addition to the process. If you have any questions or concerns regarding this agreement, please feel free to text/call/email me at any time.

In my next column, I will expound on the My Safe Florida Home program. 

Cheri F. Rosen, of Lang Realty, has been a REALTOR® in South Florida since moving to Boca Raton over a decade ago. You can learn more about real estate in South Florida by calling Cheri at 561-221-2233 or visiting Cheri’s website: southfloridacondosandhouses.com or just Google the words Orthodox Boca. Cheri’s website is the top search result. Submit your personal questions and concerns to Cheri, and they will be answered personally, or anonymously in future columns.