Why the OREF Listing Agreement Doesn’t Include Buyer Agent Compensation

Q: My seller has indicated to me at the time of listing the property that they’re willing to allow part of my compensation to he shared with the buyer’s agent. Why isn’t there a place to enter this amount in OREF 015 – Listing Agreement?

A: Effective January 1, 2025, Oregon’s House Bill 4058 introduced a new requirement that cooperative compensation must be disclosed to all parties in a transaction before agents agree to it.

We chose not to include cooperative compensation in the Listing Agreement to reduce potential liability under this new law. Doing so could expose a seller’s agent to the risk of unintentionally violating this law by not realizing they need to take this extra step.

A new practice has emerged in response to HB 4058 and recent national settlements. Buyers now enter into Buyer Representation Agreements, which establish the terms for compensating their agent. Additionally, buyers can now request, within the offer itself, that the seller directly compensate the buyer’s agent. This replaces the older method of the seller’s agent sharing commission via cooperative compensation, making it unnecessary to include a pre-agreed amount in the Listing Agreement.

As always, consult your managing principal broker to ensure you follow your firm’s policies.

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