Why do Florida homebuyers have to sign a BBA?

It is July 2024, and you decide to purchase a new home in the state of Florida. You call your Realtor and request some tours of the homes you like. They schedule the appointments, you tour the homes, and the process begins. No forms or agreements with your broker or buyer’s agent are signed yet. You pick a house and purchase it. The seller pays your Realtor’s compensation without question.

It’s now 2026, and you decide to buy another house in Florida. You call your Realtor again to request some tours of homes you like, but this time it’s different. Your Realtor asks you to sign a BBA before seeing any homes for sale.

A BB…what? Why is it a different process now than it always was?

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A Buyer Broker Agreement, or a BBA, is a document declaring the relationship between a prospective buyer and the brokerage. It outlines what services the homebuyer is entitled to from the brokerage, as well as clearly stating the compensation for these broker services that is due from the homebuyer at closing.

Why was this implemented?

Prior to August 2024, Realtors would use the MLS system to list homes for sale and include the broker’s compensation in the details. Sellers would not always be aware that the homebuyer and buyer’s agent were being promised this compensation out of their own pocket. It was not negotiable, because they couldn’t see it in the system. The MLS is only accessible to Realtors and brokerages. This practice caused higher seller fees, higher home prices, and yes, higher commissions for agents.

Ultimately, the National Association of Realtors (NAR) was sued by sellers for these practices, claiming they broke Federal Antitrust Laws. In the summer of 2024, the sellers won their case. And part of the settlement included a statewide implementation of BBAs, modeled after the 18 other states that follow the same practices.

Now, when you buy property in Florida, brokers and their agents are required to obtain signed BBA documents before even stepping foot into a home for sale with their homebuyer clients.

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There has been pushback from the real estate industry, claiming the step is unnecessary and burdens the broker — buyer relationship early on, especially if the buyer is working with a Realtor for the first time.

But the truth is, the BBA is about establishing transparency, ethical negotiation, and trust among parties. It gives everyone a clear and upfront understanding of what is being provided by both parties in the buying transaction. Most often, the seller will still end up paying the buyer’s broker compensation, but now the seller has a say in the negotiation.

I encourage all homebuyers to understand what they are signing before they sign it. Understand the purpose of the document and know that it is protecting you too!

Questions? Email me at kronaldson@kw.com