A South Florida real estate agent for Echo Fine Properties signed a buyer-broker agreement last year with a client and started showing homes to the prospective buyer.
The agent later found out the client had made a written offer on a home through a competing firm, in violation of the agreement with Echo, the brokerage contended.
Echo notified the client of the violation, starting a series of events that ultimately led to a $24,000 arbitration award for the firm, according to Echo broker Jeff Lichtenstein.
Buyer-broker agreements took effect last year under new rules that govern the buying and selling of U.S. homes. The agreements are important for buyers and also protect agents, who don't get an annual salary and get paid only after the home sells, Lichtenstein noted.
"You just can't work for free," he told Homes.com. "It's like any other profession."
Echo is based in Palm Beach Gardens, Florida, in northern Palm Beach County, and also has offices in the nearby cities of Stuart and Delray Beach. Lichtenstein declined to identify the Echo agent or the client in this case.
Some disputes resolved between parties
It's unclear how common broken agreements are, but Echo is not the first real estate firm to win damages, said Jonathan Lickstein, the 2025 president of the Broward, Palm Beaches and St. Lucie Realtors trade group. He also is chief operating officer for LoKation Real Estate in Pompano Beach, Florida.
Seeking recourse is at the discretion of the agent and the firm, and some pursue compensation while others choose not to for a variety of reasons, he said. "A lot of times it's resolved between the parties," Lickstein told Homes.com.
The new rules for buying and selling settled a national class-action lawsuit that accused the National Association of Realtors trade group and some residential real estate brokerages of unfairly increasing sellers' costs under the old protocol. A spokesperson for NAR declined to comment.
Among other provisions, agents working with buyers now must have written agreements with their clients before showing properties. The agreements typically specify the compensation due the agent, the type of property sought, a geographic area and a length of time to find a home.
Agreements bring transparency
Agents traditionally have had listing agreements with sellers, and now the buyer-broker agreements bring transparency to the other side of the transaction, according to Lickstein. He said his Realtor board works with housing groups to make sure prospective buyers understand exactly what they are signing.
This is the first time Echo has sought relief for a broken buyer agreement, Lichtenstein said.
In this case, after the firm notified the client of noncompliance, he and his family members tried to make it appear as if he didn't have a new agreement with the other agent, Lichtenstein said. "We felt deceived," he said.
An arbitrator ruled Echo's 180-day, buyer-broker agreement clearly stated terms of the contract, according to the ruling provided by Lichtenstein.
"The evidence established that the agent, as Claimant’s representative, educated the Respondent on the market and values for homes therein and took the Respondent and his family to view homes," the ruling stated.
The arbitrator's $24,000 award represents a 3% commission on the $800,0000 house the client bought in February 2025.
Lichtenstein said Echo will receive the full amount from the client, but declined to specify terms of the payment.
The broker said in an email that the case is a reminder that both agent and client "need to work in good faith" and that the client must respect the effort that goes into finding a home.
Echo lists on its website and in a handbook the many tasks an agent performs, some of which the clients never see, according to Lichtenstein.
"The easiest of the 151 items is opening the front door," he said. "The hardest is taking a call on a Sunday night while at a family dinner at 8:15 p.m."