Establishing a Buyer Representation Agreement

Louisiana REALTORS® • November 15, 2023

A Word from Breazeale, Sachse & Wilson, L.L.P.

***NOTE: Buyer Representation Agreements will be updated July 2024 and a footnote will be posted on this blog article.***




Please view a section-by-section explanation below on the sample Exclusive Buyer Representation Agreement.


After requesting and reviewing input from brokers across the State, Louisiana REALTORS® is providing members with a sample Exclusive Buyer Representation Agreement (the “Agreement”) to assist you in serving consumers seeking to purchase property in Louisiana.


Whether a member utilizes this sample Agreement or another, an agreement between a broker and buyer establishing their relationship up front can build trust, define the parameters of mutually beneficial relationships, provide clarity regarding services to be provided to the buyer, and detail the real estate professional’s compensation for their services. In short, signing a buyer representation agreement at the outset is beneficial for both a broker and a buyer because it minimizes future misunderstandings.


Exclusive Nature of the Sample Agreement

The sample form provided is an exclusive agreement which would require the buyer to only work with the named broker and no other licensee during the time period specified in the Agreement. For brokers, an exclusive buyer representation agreement safeguards their client relationship, which is reinforced by Article 16 of the REALTOR® Code of Ethics. Non-exclusive agreements are also acceptable and the difference between exclusive and non-exclusive agreements should always be discussed during negotiations of a buyer representation agreement.


Highly Encouraged, but Not Mandatory

The use of a buyer representation agreement is not mandated by Louisiana law but is highly encouraged by industry experts. Additionally, the Louisiana Real Estate Commission does not require the use of buyer representation agreements. If a member elects to use the sample Agreement form in their practice, then the form should be revised to reflect the member’s practices and always be revised to reflect negotiated and agreed upon terms between a broker and a buyer client.


Compensation is Always Negotiable

Compensation of licensees for real estate services is always negotiable. While some compensation methods and conditions are included in the sample Agreement, the parties are free to contract for any compensation or compensation conditions that they deem appropriate and agree upon.


Summary of the Agreement Sections

     I. Section 1 lays out the purpose of the Agreement, largely discussed immediately above. It also would allow the parties to limit the scope of the exclusive relationship to the purchase of a specific type of property in parishes they designate in the Agreement, but it also provides the Agreement would cover residential property located in Louisiana if the type of property was not specified or parishes were not designated. However, it is highly recommended that the geographic limitation and the designation of the type of property involved always be provided so that you and buyer establish a clear understanding of what properties the buyer is interested in and suit the buyer’s needs.


     II. Section 2 is a representation on the part of the buyer that he or she was not in a contractual relationship for the purchase of property with any other broker. This supports the exclusive nature of the relationship set forth in the Agreement.


     III. Section 3 creates an agency relationship between the Broker and the buyer, and by virtue of that agency relationship, the Broker would owe the buyer certain duties, such as the duty of good faith and fair dealing.


     IV. Section 4 lays out the definitions of certain terms used in the Agreement.


     V. Under Section 5, a specific licensee in the Broker’s office would be appointed as their “Designated Agent”. The Designated Agent is the real estate licensee in the Broker’s office who is the agent of the Buyer that will primarily work with the Buyer. Section 5 also makes it clear that certain people associated with the Broker could perform ministerial acts in connection with the exclusive relationship.


Note, this Agreement does not directly address what happens between the Broker and the Designated Agent if the Designated Agent ceases to be affiliated with the Broker but would allow for a substitute agent in that instance. The relationship between the Designated Agent and Broker, and what happens upon termination of that relationship, should be set forth in a separate written agreement between the Broker and Designated Agent.


     VI. Section 6 lays out the specific duties the Broker would owe a buyer under the Agreement, including the following:

            a. Locating a property acceptable to buyer.

            b. Negotiating the purchase.

            c. Drafting and negotiating the purchase agreement.

            d. Acting as buyer’s exclusive representative under the Agreement; and

            e. Promoting buyer’s best interests.


This section of the sample Agreement includes the duties set forth in Louisiana agency law, but clearly does not include the many and various services members provide their clients. The document should be modified to include any additional specific services you provide, and services agreed to during negotiation of the terms of any buyer representation agreement.

The Agreement also references “ministerial acts” that may be performed by the Broker. La. R.S. 9:3891(12) defines “Ministerial acts” as “acts that a licensee may perform for a person that are informative in nature,” and provides examples of these acts, such as responding to phone inquiries, conducting an open house, and setting an appointment to view property.


     VII. Section 7 lays out the duties a buyer would assume under the Agreement, including the following:

            a. An agreement to work exclusively with the Broker.

            b. Informing other brokers that the buyer encounters of his exclusive relationship with the designated Broker.

            c. Work reasonably to assist Broker in Broker’s requests and listings Broker coordinates viewing of properties.

            d. Doing due diligence on matters that would impact the purchase.

            e. Seeking expert advice on property when necessary; and

            f. Becoming familiar with the transaction documents that will be executed in connection with the purchase.


This section sets forth the duties of the buyer so that buyer clearly understands what would be expected of him or her.


     VIII. Section 8 includes specific acknowledgements that would be made by both buyer and Broker, including the following:

            a. Broker’s diligent search for property would only include those that come to Broker’s attention in the ordinary course of Broker’s business.

            b. Broker or any licensee may show property buyer is interested in to any other prospective buyer, meaning that although buyer is in an exclusive relationship with Broker, Broker is not limited to only consummating the sale of property to the particular buyer.

            c. Broker would have no obligation to monitor construction or repairs to property.

            d. No knowledge would be imputed to Broker regarding property that buyer is interested in.

            e. Broker would not provide advice on matters related to construction, insurance, surveys, titles, inspections, appraisals, finance, mold or hazardous substances, termites, insects, law, or other matters; buyer is advised to seek expert opinions on these matters; and

            f. Broker would not owe the buyer any other duties than what is required by law and set forth in the Agreement.


This section is also intended to clarify the Broker and Designated Agent’s roles and responsibilities. Again – clarifying what would and would not be done by the Broker and Designated Agent unless otherwise agreed to by the parties.


     IX. Section 9 addresses compensation. Under the terms of the sample Agreement, the buyer would be presented three possible compensation structures:

            1. a percentage of the sale price of the purchased property,

            2. a flat fee, or

            3. another form of compensation to be negotiated and agreed to by the parties.


Section 9 also provides that any compensation owed by buyer under the Agreement would be offset by compensation received by the Broker from the seller or listing agent. Section 9 also states when compensation would be due to the Broker, including the obligation of a buyer to compensate the Broker if property is purchased within a certain amount of time after the termination of the Agreement and the Broker learned about the purchased property from the Broker. Lastly, Section 9 addresses transactions involving Veterans Affairs loans as it is understood that some of these loan products may prohibit payment of a commission to a Broker by a buyer.


Members are reminded that compensation and compensation terms and conditions are always negotiable, and the Agreement provided is a sample form to be modified as necessary.


     X. Section 10 provides for the term of the Agreement; the term would be agreed upon by the buyer and Broker. This length of the term is always negotiable by the parties, but it is recommended that the term always have reasonable and specific beginning and end dates.


     XI. Section 11 details termination rights. The Buyer would be able to terminate the Agreement at any time upon written notice to the Broker, but termination of the Agreement would not terminate Broker’s right to earned and owed compensation under Section 9.


     XII. Section 12 addresses dual agency, and provides that if a dual agency relationship arose, then applicable laws, rules and regulations would be followed.


     XIII. Section 13 provides that the Broker would not be liable for the following items:

            a. Inaccurate and/or incomplete information provided to buyer by Broker, designated agent and any licensee, independent contractor, or employee of Broker.

            b.  Security deposit funds money handled or held by anyone other than the Broker, designated agent and any licensee, independent contractor, or employee of Broker.

            c. Injury or damage to property viewed or visited pursuant to the Agreement or the loss of tangible or intangible property which occurred or is believed to have occurred in connection with viewing or visiting a property pursuant to the Agreement.


            d. Injury to persons while any property is viewed or visited pursuant to the Agreement or injury of persons attributed to visiting or viewing a property pursuant to the Agreement.


Brokers should be aware that this language does not bar a person from filing suit for the listed items but is included in an effort to limit any potential liability if a claim arose for any of the listed items. 


     XIV.  Section 14 is a fairly “standard” provision in all types of contracts. It states that the Agreement would be the sole agreement between the parties which would confirms the parties have no oral agreements or side agreements related to the subject matter covered by the Agreement. That may be important should the buyer subsequently claim that the Broker or Designated Agent made promises or representations not included in the Agreement.


     XV. Section 15 authorizes electronic communications and is similar to the electronic communications provisions of the mandatory purchase agreement form.


     XVI. Section 16 is a space that allows for the parties to add, modify, or write in any other terms, conditions, agreements, or specifications agreed to in their negotiations. Of course, the parties may also agree to attach an addendum if there are substantial additions or modifications to the Agreement and that addendum can simply be referenced in Section 16.


Best Practices for Using a Buyer Representation Agreement Exclusive Buyer Representation Agreement Sample (PDF) Exclusive Buyer Representation Agreement Sample (Word)

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2026 Legislative Session Scoop - Week 8 Recap

By Louisiana REALTORS® • May 1, 2026
Week 8 was one of the most consequential weeks of the session so far for Louisiana REALTORS® and the real estate industry. Two of the association’s flagship bills moved to the brink of final Senate action, rent stabilization was stopped again in committee, major insurance legislation continued to advance, and several bills affecting property rights, tort reform and transaction practice saw meaningful movement. The biggest developments of the week came on HB 468 and HB 1027 , both by Rep. Troy Hebert . HB 468 , the residential wholesaling bill, cleared the Senate Commerce Committee on April 28, had its amendments adopted on April 29, and was referred to the Legislative Bureau putting it one step away from the Senate floor. HB 1027 , the appraiser liability bill, followed the same path after its overwhelming House passage earlier this month and is also now pending Legislative Bureau review before final Senate consideration. Louisiana REALTORS® strongly supports both measures, which are designed to strengthen consumer protection, improve market clarity and reinforce confidence in the real estate transaction process. On the rent-control front, HB 472 by Rep. Alonzo Knox was brought back before the House Municipal, Local and Parochial Affairs Committee this week. Louisiana REALTORS® testified in opposition, and the committee voted 8-5 to defer the bill involuntarily. That is a meaningful win for property owners, housing providers, and the long-term health of Louisiana’s housing market. Louisiana REALTORS® remains firmly opposed to rent stabilization proposals, which may sound politically attractive, but have consistently been tied to reduced housing supply, deterioration in rental stock and long-term affordability problems in markets where they are adopted. Insurance remained one of the session’s most active and important policy areas. HB 1187, Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, passed the full House 87-9 on April 29, and now heads to the Senate. Because Citizens' assessments can ultimately affect policyholders across the state, this bill has clear relevance for affordability and homeownership costs. HB 408, Rep. Edmond Jordan was heard in House Insurance Committee this week and remains pending. This bill would prohibit insurers from non-renewing residential policies when homeowners have taken documented steps to reduce risk, an issue with direct implications for insurability and failed closings in vulnerable markets. In addition, SB 241 by Sen. Valarie Hodges , which requires insurance adjusters and appraisers to include their license numbers in written communications, cleared House Insurance unanimously and is now headed to the House floor. Taken together, these measures reflect the legislature’s continued focus on insurance stability, transparency and accountability, all of which remain central to real estate activity in Louisiana. Week 8 also brought movement on broader tort reform and property-rights-related legislation. HB 437 , addressing expert witness fees, and HB 1089 , creating structured CARE Accounts for tort damages, both cleared House Civil Law and are now set for House floor debate next week. Meanwhile, SB 180 by Sen. Franklin Foil , allowing surviving spouses of disabled veterans to transfer a property tax exemption, is nearing final House passage after advancing to third reading. While not all of these bills directly regulate licensees, they reflect the broader civil liability and property tax environment that affects the cost and accessibility of owning property in Louisiana. Another key bill for the industry, HB 1166 by Rep. Kim Carver , remains very much alive and is now positioned for House floor debate on Tuesday, May 5 . The bill would require disclosures for vacant residential property, and it would close an existing gap in Louisiana law that currently exempts many vacant homes from standard seller disclosure rules. After being called and returned to the calendar earlier in the week, the bill is now finally set for debate. Louisiana REALTORS® also intends to use the bill as a vehicle for a structural amendment to the Louisiana Real Estate Commission that would move toward a more geographically balanced appointment process, with one member appointed from each congressional district and the remaining members appointed at large. That change would better ensure regional representation across Louisiana’s diverse real estate markets and help modernize the commission’s structure. Taken together, week 8 was a strong and consequential week for Louisiana REALTORS®. The association’s two flagship bills are now within reach of Senate floor passage, rent stabilization was turned back in committee, important insurance legislation continued moving, and HB 1166 remains positioned as both a major disclosure bill and a possible vehicle for meaningful LREC reform. Louisiana REALTORS® remains fully engaged at every stage of the process to protect private property rights, support practical regulation and advance policies that strengthen Louisiana’s real estate market. Lastly, this week, Louisiana REALTORS® wants to extend sincere thanks to Rep. Delisha Boyd — a real estate broker herself — for her tireless work shepherding HB 292 through the legislative process. The security deposit fairness bill, which allows landlords and tenants to mutually agree in writing to extend the timeline for returning a security deposit when damage is found, has passed to third reading and final passage in the Senate and is nearly on its way to the Governor's desk. This has been a meaningful win for both property owners and renters across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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2026 Legislative Session Scoop - Week 7 Recap

By Louisiana REALTORS® • April 24, 2026
Week seven of the 2026 Regular Session was one of the most active weeks yet for legislation affecting the real estate industry. Louisiana REALTORS® remained heavily engaged as lawmakers advanced bills dealing with property disclosures, appraiser liability, rent regulation, insurance, blight, redevelopment and other issues that directly affect real estate professionals, property owners and consumers across the state. One of the most important bills this week was HB 1166 by Rep. Kim Carver , which would require disclosures for vacant residential property. The bill was reported from House Commerce with amendments on a 14-0 vote and then amended on the House floor, ordered engrossed, and passed to third reading. Louisiana REALTORS® testified on the bill in committee and worked closely with the author to better posture the legislation. Amendments advanced by our team were accepted by the author, helping improve the bill while preserving a practical disclosure framework that increases transparency without creating unnecessary confusion in the transaction process. Another closely watched issue this week was consumer-fee disclosure legislation. HB 617 by Rep. Mandie Landry moved this week, advancing from House Commerce and then the House floor, while HB 580 , another hidden-fee disclosure bill touching real estate transactions, remains pending. Louisiana REALTORS® is opposed to these measures in their current form to the extent they apply to real estate professionals because they are not well-tailored to the realities of real estate transactions, where many costs are negotiated, variable or controlled by third parties. Louisiana REALTORS® testified in opposition to the bills we oppose and is actively working with the author to better posture the legislation and remove real estate professionals from its scope altogether. On HB 472 by Rep. Alonzo Knox , the rent stabilization bill, the author is expected to try to bring the measure back before the committee next week with amendments. Even so, Louisiana REALTORS® remain opposed to the bill on principle. Price gouging is already illegal under existing law, and government-imposed rent regulation is not the right answer to housing affordability challenges. Louisiana REALTORS® testified in opposition to the bill and continues to oppose the measure because policies like this risk discouraging investment, reducing housing supply, and creating further market distortions rather than solving the underlying problem. HB 468 by Rep. Troy Hebert , which regulates the wholesale of residential real property, remains pending in the Senate Commerce Committee and continues to be an important bill for the industry. Likewise, HB 1027 by Rep. Troy Hebert , dealing with appraiser liability, had a strong week, passing the House 90-0 and moving to the Senate. Both measures are significant because they promote greater clarity, consumer protection and confidence in the real estate marketplace. Blight and redevelopment issues also remained active. HB 284 by Rep. John Wyble , which would allow certain local governments to expropriate blighted property through a declaration-of-taking process, remains subject to call and continues to raise serious concerns about private property rights. By contrast, HB 214 and HB 217 by Rep. Chance Henry , which create tax incentives for the rehabilitation of blighted property, represent a more constructive redevelopment approach by encouraging reinvestment rather than expanding government taking authority. Insurance legislation also remained a major focus this week, with multiple bills heard that could affect homeownership costs, market stability and post-storm recovery. Measures dealing with Louisiana Citizens assessments, pre-suit insurance claim review, the Fortified Homes Program and insurance market transparency all carry real implications for affordability and transaction viability. In Louisiana, insurance remains one of the most important issues affecting the real estate market, and Louisiana REALTORS® continues to closely track that legislation. Taken together, week seven showed that Louisiana REALTORS® remains actively engaged where it matters most: supporting practical transaction standards, protecting private property rights, testifying for and against legislation when necessary, pushing back on unworkable regulation and rent-control-style policies, and advancing policies that strengthen housing opportunity and market stability across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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