Who Can Use the Tar Registration Agreement between Brokers Form

The TAR (Texas Association of Realtors) registration agreement between brokers form is a document that outlines the terms and conditions for a brokerage relationship between two real estate brokers. It is commonly used in Texas and it is important for both parties to understand its provisions before signing it. But who can use it? Let`s explore.

Real Estate Brokers

The primary users of the TAR registration agreement between brokers form are real estate brokers. This includes both the listing (or seller`s) broker and the cooperating (or buyer`s) broker. The form allows these two parties to establish a relationship, where the listing broker agrees to compensate the cooperating broker for bringing a buyer to the property.

This agreement can be used for any type of property, including residential, commercial, and land. It ensures that the cooperating broker will receive a commission for their services in finding a buyer, even if they do not have a direct relationship with the seller.

Real Estate Agents

Real estate agents who work under a broker can also use the TAR registration agreement between brokers form. However, the agreement is between the brokers, and not the agents. This means that the agents are not parties to the agreement and are not entitled to any compensation. Instead, the brokerage firms are responsible for paying their agents a portion of the commission earned from the transaction.

This means that if an agent wants to work with a listing broker who has already established a relationship with a cooperating broker, they can still use the TAR registration agreement between brokers form to establish their own compensation agreement with the cooperating broker.

Buyers and Sellers

While the TAR registration agreement between brokers form is not directly used by buyers and sellers, they can benefit from it indirectly. The agreement ensures that the cooperating broker will receive a commission for their services in finding a buyer, which means that the buyer does not have to pay any additional fees. The commission is typically paid by the seller, as part of the total commission paid to the listing broker.

In summary, the TAR registration agreement between brokers form is primarily used by real estate brokers, but it can also benefit real estate agents, buyers, and sellers. It is an important document that establishes a compensation agreement between the listing and cooperating brokers and ensures a smooth transaction for all parties involved.