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Understanding Buyer Representation, Retainers & New Compensation Rules

Thank you for considering Luxury Property Solutions as your representation. The real estate industry has recently gone through major national changes affecting how buyers receive representation and how brokers are compensated. This page explains these changes clearly so you understand what they mean for you as a buyer.

Recent Changes to Real Estate Compensation Laws

Historically, buyers received representation at no upfront cost because the seller paid both the listing agent and the buyer’s agent. Due to new national legal changes, this is no longer the case.

  • Sellers are not required to pay the buyer’s agent.
  • Buyer-agent compensation can no longer be displayed or advertised on the MLS.
  • A written Buyer Representation Agreement is now required before any showings.
  • Buyers now select — and compensate — their own agent directly.
Important: Sellers may still choose to offer compensation, but it is now optional and not guaranteed.

Your Relationship With Us as Your Brokerage

As a buyer, you now hire a broker directly in the same way you would hire a professional advisor, attorney, or consultant. This ensures you receive full representation, confidentiality, market intelligence, and strong negotiation support.

  • You choose who represents you.
  • You agree upfront how your agent is compensated.
  • Your interests are protected throughout the process.

Your Required Retainer

To engage Luxury Property Solutions as your representative, the following retainers apply:

Residential Buyers: Up to $5,000 (Non-Refundable)
Commercial Buyers: $10,000–$20,000 (Non-Refundable)

The commercial retainer range reflects the scope and complexity of the assignment. Larger transactions, multi-tenant assets, redevelopment opportunities, and income-producing evaluations require more extensive analysis and resources.

What Your Retainer Covers

Your retainer allows us to immediately begin the extensive professional work required to properly represent you — especially under the new compensation rules.

  • Property identification & advanced research
  • Access to off-market and private opportunities
  • Financial modeling, underwriting & ROI analysis
  • Review of leases, expenses, CAM, taxes & insurance
  • Offer strategy, LOI drafting & negotiation
  • Coordination with lenders, attorneys, inspectors & vendors
  • Protection against overpaying or entering risky deals

This level of work occurs long before a commission is earned. Your retainer ensures that we can dedicate the professional time, resources, and expertise needed to protect your financial interests.

How This Benefits You

By securing representation with a retainer, you receive:

  • Priority service and rapid response times
  • Comprehensive due diligence before making offers
  • Better negotiation leverage through detailed analysis
  • Access to deeper research and off-market opportunities
  • Full compliance with all new national real estate regulations
  • Protection from costly mistakes in residential and commercial purchases

In today's market, buyers do not automatically receive professional representation unless they secure it themselves. Your retainer guarantees full, dedicated, and proactive representation from day one.

*Retainer amounts and services may vary based on the scope of your search. This explanation is for buyer education and transparency.*