A “one-time showing agreement” or a Commission Agreement for Sale is a commission agreement between a for sale by owner (seller) and the real estate brokerage company. It is a written agreement in which the seller agrees to pay a commission to the Realtor connected to the buyer. If that buyer purchases the seller’s (FSBO’s) home, the real estate agent is paid a commission on the HUD at closing.
The home seller signs the Commission Agreement for Sale, which usually identifies the potential buyer and guarantees the agent a commission should that buyer purchase the property.
This agreement works well when a Realtor wants to show a buyer a FSBO (For Sale By Owner) home that is not listed in the MLS. The seller must agree to pay a commission, usually half of what he would pay normally if he listed the home with an agent under an Exclusive Right of Sale Listing Agreement.
It can be a great benefit to the seller in many ways. It takes a lot of burden off the FSBO seller because he no longer has to worry about contracts and other paperwork required by the title company or attorney closing the deal. Also, the seller can be assured he is getting a qualified buyer that can afford the property. Sellers should make sure to ask the Realtor representing the buyer for a mortgage pre-approval letter for the buyer if they are planning on financing the home.
This agreement helps to expand the options of a home buyer and still allow them to be represented for no-charge by a licensed Realtor. If a home buyer sees a home that is a FSBO when he’s driving down the road, all he has to do is ask his real estate agent to call the seller and set up a showing appointment. The Realtor gets the home seller to sign a one-time showing agreement and then brings the buyer to view the home. If the buyer likes it, the buyer’s Realtor writes up the offer and presents it to the FSBO homeowner.
The commission is paid by the seller at closing. These types of sales are never entered into the MLS and only show up in the public records.
Here is a sample of a one-time showing agreement. No guarantees are made about the legal accuracy of this form. Use at your own risk: