BIC TIP #1216: Buyer Agents Who Like Getting Paid Should Consider This

Buyer agents, do you like getting paid? Silly question. In this BIC TIP, Stephen Long shares a practical way to protect your compensation: get a Form 220 Confirmation of Compensation executed, and if you cannot get it signed before going under contract, attach it as an addendum to the Offer to Purchase and Contract.

The Seller Wants to See the Whole Deal First

Many buyer agents are running into the same situation. The seller does not want to agree to pay buyer agent compensation until they can see the entire offer. Price, terms, due diligence, closing date, all of it. That is understandable from the seller’s side, but it can leave the buyer agent wondering whether they will be paid at all.

Ideally, the Form 220 is executed before the contract. When that is not possible, there is another path.

Make It a Package Deal

Stephen explains that you can attach the Form 220 to your offer. In the addenda section of the Offer to Purchase and Contract, select other and attach your Form 220. Now the confirmation of compensation and the contract travel together.

Because the Form 220 is an addendum to the contract, the two are not executed independently. The seller cannot accept the offer while ignoring the compensation piece. As Stephen puts it, they are a package deal.

Why This Matters

Compensation conversations have changed, and buyer agents need clean, written agreements more than ever. Bundling the compensation confirmation with the offer gives everyone clarity at the moment of acceptance instead of a dispute at the closing table.

As always, make sure you are using current forms and following your firm’s policies. If you are unsure how to complete the addenda section, check with your broker-in-charge.

The Practical Takeaway

Try to get the Form 220 executed before going under contract. If the seller insists on seeing the full offer first, attach the Form 220 as an addendum under the other option in the addenda section. If you like money, that is the package deal worth considering.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.