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Right Hand Real Estate Events
Past Event Recaps
We kicked off the year with our first ever agent event. It was a drop in with a GPS goal setting strategy workshop on January 15th. We were delighted with the turnout and connections made. Most agents left with detailed, actionable strategies to support their BIG GOAL for 2025.
On Thursday, January 16th, Right Hand Real Estate hosted Kyle Raineri from RealEstateContent.ai to share a social media training with our agents. The feedback from one attendee was "That was the best social media seminar I've ever attended!" If you'd like to receive the coupon code he shared for his platform, I'm happy to send it over!
Upcoming Events
Keri Smith from Choice Home Warranty will be leading us in a 3 hour CE class on Thursday, February 6, 2025.
GAR Form of the Month
F259 Buyer Compensation Agreement
Understanding changes to real estate contracts is essential for ensuring smooth transactions and compliance with Georgia real estate law. The recent updates to the F259 Buyer Broker Compensation Exhibit (formerly the Broker Compensation Exhibit) have introduced significant changes to how Buyer Broker compensation is addressed. Here's what you need to know:
What’s New in the F259 Buyer Broker Compensation Exhibit?
Renaming and Section Updates
The form is now called the Buyer Broker Compensation Exhibit to better reflect its focus.
Instead of a blank field to fill in the payor, agents now select from sections specifying who is responsible for compensation:
Section 1.A: Compensation is paid by the Seller Broker (cooperative compensation).
Section 1.B: Compensation is paid directly by the Seller (direct compensation).
Exclusion of Seller Broker Compensation
The Seller Broker’s compensation is no longer included in the exhibit. This change reflects the principle that the Seller Broker’s internal compensation arrangement is irrelevant to the Buyer’s request for concessions.
Important Note: Some agents have overlooked this change, leading to double compensation for the Buyer Broker—once from the Seller and again from the Seller’s Broker. Review the exhibit carefully to avoid this error.
Return to Instructions to Closing Attorney
Since Seller Broker compensation is no longer on the F259, the Instructions to Closing Attorney must be completed for every transaction. This ensures all compensation arrangements are documented appropriately.
Questions to Ask Before Writing an Offer
To align with these updates, brokers and closing attorneys are encouraging agents to ask these key questions before drafting an offer:
How much is the Buyer Broker compensation?
Who will pay this compensation?
If these details are not specified in a Pre-Showing Compensation agreement, they must be included in the purchase agreement. Remember, informal communications (such as texts or emails) from the Seller’s Agent are not legally binding.
Completing the Buyer Broker Compensation Exhibit
Here’s how to properly fill out the F259 based on the situation:
When you know the amount and the Seller Broker is paying:
Use Section 1.AÂ to indicate the agreed-upon amount.
When the amount is known, and the Seller is paying directly:
Use Section 1.BÂ to document the request.
When you know the amount but not the payor:
Use Section 1.BÂ or Special Stip 620 to include the amount in your offer.
Avoid requesting payment from the Seller Broker (Section 1.A) unless it has been explicitly offered. Doing so could be seen as an attempt to modify another licensee’s compensation, which may violate Georgia license law and the REALTOR® Code of Ethics.
Key Takeaways for Agents
The updates to the F259 Buyer Broker Compensation Exhibit aim to streamline negotiations and clarify compensation responsibilities. However, they require careful review to avoid compliance issues or financial missteps. By staying informed and following these guidelines, agents can ensure fair and legally compliant transactions.
Note: The information provided in this newsletter is for general informational purposes only and should not be construed as legal or brokerage advice.
SS 620 BUYER REQUESTS SELLER PAY BUYER’S BROKER’S COMPENSATION
Buyer hereby requests, and Seller hereby agrees to pay Buyer’s Broker at Closing the following compensation for professional services. [Select one below.]
$________________________
_____% of the purchase price
________________________________________________________________________ (other)
Nothing herein shall be interpreted as a request to alter, modify or change the commission to be received by Seller’s Broker, if any, that Seller may have agreed to pay Seller’s Broker in any separate written agreement.
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