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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Louisiana Residents Encouraged to Use New LDI Tools to Prepare for Hurricane Season

By Louisiana REALTORS® • June 9, 2026
From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19.  During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
Educating prospective homebuyers on the true cost of owning a home

How to Talk to Clients About the True Costs of Homeownership in Louisiana

By Louisiana REALTORS® • June 9, 2026
Learn how real estate agents can educate buyers about Louisiana homeownership costs, including taxes, insurance, HOA fees, and maintenance.

2026 Legislative Session Scoop - Session Wrap-up

By Louisiana REALTORS® • June 5, 2026
The 2026 Regular Legislative Session has officially adjourned, and Louisiana REALTORS® closes the session with a strong record of legislative wins, defensive victories and meaningful progress on issues that directly impact property owners, homebuyers, housing providers and real estate professionals across Louisiana. This session touched nearly every major pressure point in the real estate market: insurance affordability, transaction transparency, appraisal certainty, leasing law, property taxes, blight redevelopment, litigation costs, consumer protection and private property rights. Louisiana REALTORS® successfully advanced several major policy priorities this session, including residential wholesaling reform, vacant residential land disclosure, appraisal certainty, security deposit reform, insurance mitigation funding and redevelopment tools for blighted property. At the same time, the association helped stop or reshape proposals that would have harmed housing supply, increased practitioners' liability, or created uncertainty for property owners and housing providers. Major Wins for You and Real Estate Residential Wholesaling Reform The signature victory of the session was HB 468 by Rep. Troy Hebert , Louisiana REALTORS®’ residential wholesaling reform bill. For years, residential wholesaling operated in a gray area of Louisiana law. HB 468 creates a clear statutory framework for residential wholesaling, strengthens consumer protection, increases transparency, and gives the Louisiana Real Estate Commission meaningful enforcement authority. The bill’s conference report passed unanimously in both chambers, with votes of 94-0 in the House and 35-0 in the Senate. This is a major structural reform for Louisiana real estate law. This bill will be state law effective August 1, 2026. Please note that the law does not affect any wholesale contracts between now and the effective date. Vacant Residential Land Disclosure HB 1166, by Rep. Kim Carver, passed the Legislature and has been sent to the Governor for his signature. The bill addresses disclosure gaps in vacant residential land transactions where buyers may discover late-stage issues involving access, utilities, drainage, flood risk, prior use or other material facts. HB 1166 creates a clearer process for buyers, sellers and real estate practitioners, and should help reduce failed transactions, disputes and closing-table surprises. As new industry forms and disclosures are developed, Louisiana REALTORS® will monitor the process closely and work to ensure the final requirements are practical, clear and consistent with sound industry practice. The Louisiana Real Estate Commission will complete the forms and disclosure process, with final implementation expected to be legally required for agents beginning January 1, 2027. Appraisal Liability Protections Louisiana REALTORS® secured two important appraisal-related wins. HB 1027 also by Rep. Troy Hebert , signed as Act No. 187 , clarifies that appraisers should not be held liable for compliance with obligations that belong to other parties in the transaction. HB 300 by Rep. Neil Riser , signed as Act No. 149 , addresses appraisal thresholds for bank-owned property. Together, these measures support greater transaction certainty and fairness in the appraisal process. The pair of these measures will take effect as law on August 1, 2026. Housing & Market Stability Security Deposit Reform HB 292, by Rep. Delisha Boyd and signed by Governor Landry as Act No. 63 , creates a more workable process for addressing damage discovered at the end of a lease and provides greater flexibility through written agreements regarding security deposit timelines. The measure offers practical clarity for housing providers, tenants and property managers when property damage is identified after move-out, allowing additional time to assess damage, obtain repair estimates and document costs before final security deposit accounting is completed. By creating a clearer statutory framework, the law helps reduce disputes and ensures that both landlords and tenants have a better understanding of their rights and responsibilities. Property managers can mark August 1, 2026, on their calendars, as that is the effective date for this legislation. Protections for Victims & Landlords HB 297, by Rep. Mandie Landry and signed by Governor Landry as Act No. 64 , expands Louisiana's early lease-termination protections to include victims of stalking and cyberstalking. The law recognizes that personal safety may require a tenant to leave a residence before the end of a lease term. To exercise these protections, a tenant must provide documentation from a qualified third party or other authorized evidence demonstrating that they are a victim of stalking or cyberstalking and that continued occupancy would present a safety concern. The measure also clarifies and expands who may serve as a qualified third party for purposes of supporting a tenant's request. These changes will take effect into law on August 1, 2026. Insurance Affordability and Mitigation Insurance affordability remained one of the most significant issues facing Louisiana homeowners and the real estate market. HB 1187 by Rep. Paul Sawyer , signed by Governor Landry as Act No. 416 , transfers an additional $50 million in Katrina bond assessment funds to the Louisiana Fortify Homes Program. Combined with other insurance-related funding, the program reaches approximately $80 million for the year. The Fortify Homes Program remains one of Louisiana’s most direct tools for reducing property risk, strengthening homes, improving market stability, and placing downward pressure on insurance costs over time. Several additional insurance measures did not reach final passage, including legislation on fortified roof endorsements, nonrenewal protections for homeowners who mitigate risk, and a pre-suit review process for residential property insurance disputes. These remain important long-term priorities. This became law and took effect upon the Governor’s signature. Blight, Redevelopment, and Property Taxes Louisiana REALTORS® supported policies this session aimed at returning neglected property to productive use and strengthening property-tax fairness. HB 214 by Rep. Chance Henry , now Act No. 272 with Governor Landry’s signature, will appear on the ballot as a constitutional amendment authorizing an optional property tax exemption for rehabilitated blighted or derelict property. HB 217, also by Rep. Chance Henry , is the enabling legislation for HB 214 and has received the Governor’s signature, becoming Act No. 422. Together, these measures would give local governments another tool to encourage private investment, neighborhood revitalization, and redevelopment. SB 180 , now Act No. 39 , will also appear on the ballot. The measure allows the surviving spouse of a deceased veteran with a service-connected disability to transfer an expanded property tax exemption. This is both a property-tax fairness measure and a homeownership stability measure for Louisiana veterans’ families. If passed in the fall election, the measures would take effect on January 1, 2027, as well as SB 180. Defensive Victories Some of the most important wins in this session came from stopping harmful legislation before it became law. Rent Stabilization Stopped Twice HB 472 by Rep. Alonzo Knox , the rent price control bill, was stopped after being involuntarily deferred. Louisiana REALTORS® opposed the bill and provided testimony in committee because rent-control policies can discourage investment, reduce housing supply, create uncertainty for housing providers and ultimately worsen affordability challenges. Knox brought the bill to the House Committee on Municipal, Local and Parochial Affairs twice due to the opposing testimony of our organization and opposition from the Home Builders Association and the Louisiana Apartment Association. Hidden Fees Bill Reshaped Yet Still Thwarted HB 617 by Rep. Mandie Landry , the hidden fees bill, raised concerns because it could have imposed liability on real estate professionals for fees they do not control, including those set by lenders, title companies, insurers, government entities and other third parties. Louisiana REALTORS® successfully negotiated a House-side amendment exempting real estate transactions from the bill’s scope. The bill later died in the Senate Commerce Committee. It is worth noting that the author agreed to include us in an amendment by Rep. Troy Hebert from the House floor, exempting real estate transactions. Automatic Renewal Bill Monitored HB 750, by Rep. Vincent Cox, addressing automatic renewal provisions, was closely monitored by Louisiana REALTORS® to ensure the legislation did not unintentionally apply to residential or commercial leases, property management agreements, association operations, nonprofit activities or standard real estate practices. Those concerns were successfully addressed through a Louisiana REALTORS® amendment offered by Senator Pressly during Senate consideration. When the bill returned to the House, Rep. Cox accepted the amendment and supported concurrence, preserving the bill's consumer protection goals while ensuring Louisiana's real estate industry, housing providers, associations and nonprofits were not subjected to unintended regulatory burdens . Missed Opportunities Two broader legal reform measures passed the House but stalled in the Senate Judiciary A Committee. HB 437, by Rep. Michael Melerine, addressing expert witness fees, and HB 1089, by Rep. Dennis Bamburg, establishing CARE Accounts, both reflected broader efforts to reduce litigation costs, improve Louisiana’s legal climate, and address cost drivers affecting insurance affordability and business competitiveness. Their failure to reach final passage was a missed opportunity, but the issues remain central to Louisiana’s long-term affordability conversation. Louisiana REALTORS® will continue to monitor these proposals and hope to see similar reforms return next session with a different outcome. What Comes Next The end of the session does not end the work. Louisiana REALTORS® will now turn to implementation, member education, ballot engagement and preparation for the next legislative cycle by directly engaging you, the driving force behind all of our efforts. The issues that shaped this session — housing affordability, insurance availability, redevelopment, legal costs, and private property rights — are not going away. Neither are we. Louisiana REALTORS® remain committed to serving as a consistent, credible and effective voice for property owners, homebuyers, housing providers and real estate professionals across Louisiana. Thank You As the Legislature adjourns, Louisiana REALTORS® expresses sincere appreciation to the leadership, members, public officials and advocacy partners who helped make this a productive and successful session for the real estate industry and property owners across Louisiana. We are especially grateful to Louisiana REALTORS® President Ginger Maulden, President-Elect David Favret, Treasurer Misty Ingersoll, Legislative Committee Director Keary Coffin, Outside General Counsel Eric Landry, LARPAC Chairwoman Marsha McGraw-Barbera, the Louisiana Real Estate Commission Commissioners and Executive Team, and the members of the Louisiana REALTORS® Legislative Committee for their leadership, guidance, resources and engagement throughout the session. We also extend a special thank you to those who attended this session’s REALTOR® Day and helped strengthen our presence at the Capitol. Your participation amplified our ability to advocate with one united voice when it mattered most. We further extend our appreciation to the legislators and partners who worked alongside us this session, including Rep. Troy Hebert, Rep. Kim Carver, House Commerce Chairman Daryl Deshotel, Rep. Delisha Boyd, Rep. Stephanie Hilferty, Rep. John Wyble, Sen. Beth Mizell, Sen. Greg Miller, Speaker Phillip DeVillier, Senate President Cameron Henry and Governor Jeff Landry for their leadership, accessibility and commitment to addressing issues impacting housing, property rights, insurance affordability, redevelopment and Louisiana’s economic future. Strong policy outcomes are only possible through collaboration, professionalism and sustained engagement. Louisiana REALTORS® remains grateful for the relationships and partnerships that helped move meaningful legislation across the finish line this year. Please view the session wrap-up tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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