What is a One Time Showing Contract?
A “one-time showing agreement” or a Showing and Commission Agreement 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 at closing and successful sale of the proeprty.
The seller signs the Showing and Commission Agreement, which usually identifies the potential buyer. It also guarantees the buyer’s realtor a commission should that buyer purchase the property. The Minnesota Association of Realtors supplies realtors with this form to use.
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 to the Realtor if the property successfully closes. The commission is usually half of what he would pay normally if he listed the home with a realtor under an Exclusive Right of Sale Listing Agreement.
By Default, the Realtor only Represents the Buyer
With a Showing and Commission Agreement the Realtor does not represent the seller by default. If the seller decides they would like to be represented by the Realtor there are other options. The Showing and Commission Agreement can be a great benefit to the seller in many ways. It takes a lot of burden off the FSBO seller and involves a professional working with the buyers to help ensure a smooth transaction.
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, 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 homeow
