ORLANDO, Fla. — Florida Realtors® forms include an Exclusive Buyer Brokerage Agreement (EBBA) and Exclusive Right of Sale Listing Agreement (ERS). The EBBA recently had significant modifications, and one of those changes is that it now includes a conditional termination clause that’s much like the one we’ve had for years in the ERS.

The key elements of the conditional termination clause in the EBBA and ERS are as follows:

• The buyer or seller can request a termination.
• It’s up to the broker whether to agree to terminate the agreement or not.
• The clause only mentions conditional termination.
• The buyer or seller will owe a termination fee.
• The buyer or seller may still owe compensation after the agreement is terminated.

Although the EBBA and ERS agreements only mention conditional termination, the accompanying forms that parties can use to terminate the agreement also include an option for unconditional termination. The accompanying forms are called the Modification to Exclusive Buyer Brokerage Agreement/Showing Agreement (MEBBSA) and the Modification to Listing Agreement (MLA).

Based on numerous conversations with members on the Florida Realtors Legal Hotline, brokers routinely honor a request to terminate. When they do, they’ll need to decide which type of termination makes the most sense under the circumstances:

• Conditional Termination. This termination fits parties who are no longer interested in buying or selling, and plan to halt their activities until after the EBBA or ERS timelines expire. The parties will need to negotiate a future date when the buyer or seller are free to resume their activities. The clause is identical in the MEBBSA and MLA and provides, “The parties agree to conditionally terminate the Agreement. Consumer will pay the agreed upon cancellation fee and the conditional termination date will be    .”

Although the broker doesn’t have to offer services after a conditional termination, full compensation would be due if a buyer or seller enter into a purchase and sale agreement. In the case of a seller, they will also owe compensation if they convey the property (i.e. sign a deed) without signing a contract.

• Unconditional Termination. This termination fits parties who want to make a clean break and move on. Immediately after an unconditional termination, a buyer or seller could enter a new EBBA or ERS with a different brokerage firm. Under unconditional termination, both sides agree to powerful release language, as they release each other from “all obligations under the Agreement and…any and all claims and actions arising from or related to the Agreement.”

Joel Maxson is Associate General Counsel

Note: Information deemed accurate on date of publication

© 2024 Florida Realtors®

WASHINGTON — In 2024, Realtors® reported that their recent clients chose to move to a specific area primarily to be closer to family and friends (30%) and to get more home for the money (21%), according to a new report from the National Association of Realtors®.

While available U.S. Census Bureau data provides information surrounding where and in what volumes Americans are moving, NAR’s 2024 Migration Trends report analyzes the drivers and motivators of Realtors’ clients who move to different areas nationwide to understand and measure why people are moving to certain areas. The report also breaks down regional differences by movers to the Midwest, Northeast, South and West.

U.S. Census Bureau data finds the top 20 states with the highest net migration in 2023 include Florida (372,870), Texas (315,301), North Carolina (126,712), South Carolina (91,853), Georgia (88,325), Tennessee (76,471), Arizona (57,814), Alabama (36,128), Oklahoma (31,967), Ohio (28,718), Indiana (22,468), Arkansas (22,202), Virginia (21,132), Idaho (20,053), Wisconsin (19,301), Colorado (19,167), Missouri (19,023), Kentucky (16,592), Washington (13,643) and Nevada (12,908).

Forty-six percent of Realtors’ clients moved to the South in 2024, followed by 25% to the West, 18% to the Midwest and 11% to the Northeast. Conversely, 33% of respondents’ clients moved from the South, 30% from the West, 22% from the Midwest and 15% from the Northeast.

Movers to the West were driven more than others by getting more house for the money (24%), movers to the South were more driven than others by lower or more favorable tax rates (19%) and movers to the Northeast were more motivated than others to move closer to their job location (22%).

“It is no surprise that the Sun Belt states continue to attract movers within the U.S., but this report helps to highlight just how much the draw to be close to one’s friends and family drives a relocation,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Home buyers continue to seek areas where their support systems are around them.”

After stating that being closer to family and friends (30%) and to get more home for the money (21%) were at the top among all reasons for choosing a specific area, the secondary reasons Realtors’ recent clients cited for moving to a specific area include the area having lower or more favorable taxes (16%), it being a safer area with less crime (16%) and being closer to their work location (15%). When asked to identify the one primary reason for choosing to move to a specific area, the most common driver among Realtors’ recent clients was to be closer to family and friends at 23%, followed by getting more house for the money (12%) and being closer to work (9%).

“Home buyers are placing a priority on getting more bang for their buck, looking to areas with not only more space within their home but also favorable taxes,” said Lautz. “This migration flow will likely continue as retirees and remote workers relocate.”

Realtors’ recent clients generally moved to a similar type of area; however, those moving from central city/urban areas (41%) and resort areas (44%) most often moved to a suburban area.

In 2024, Realtors reported that 36% of their clients moved to a different state. However, the majority of Realtors’ clients moved intrastate: 21% moved within the same city, 21% moved to a different city in the same area and 21% moved to a different area within their state. Those relocating to the South and West were most likely moving from a different state, while movers in the Northeast were most likely moving within the same state.

Consistent with general seasonal market trends, respondents’ clients were most likely to have begun their home purchase transaction in June (21%), May (18%) or April (15%).

Among repeat buyers, 74% sold their previous residence when making their recent purchase, while 20% kept their previous residence as an investment, rental or vacation property. Repeat buyers who moved to the West and Northeast were more likely than others to keep their previous residence.

Of Realtors’ recent clients, 94% made a permanent move to a new area, while 6% now split their time between their new and previous locations. Nearly one in five (18%) moved back to an area where they had previously lived, a trend more common in the Midwest (24%) and West (20%).

Realtors’ recent clients are most likely to have chosen a specific home based on its outdoor space (42%), additional square footage (31%) and because it’s in a quieter area (24%). Outdoor space was especially important to movers to the Midwest, while movers to the Northeast were particularly driven by the need for more square footage and a better work commute.

Job location did not play a role in the purchase decision for 43% of Realtors’ recent clients, as they continue to work remotely, while job location did influence 37% of movers who work at least some of their time in the office. Movers to the West and South were most likely to report that job location did not play a role in their decision due to remote work.

Only 2% of Realtors’ recent clients made their move due to a return-to-office in their jobs. This was slightly more common among movers to the Midwest at 4%.

Methodology: The 2024 Migration Trends survey was sent via email to a random sample of 143,514 Realtors nationwide in August 2024. The survey received 1,572 responses, 1,061 of which had represented a primary home purchase in 2024, for an overall response rate of 1.1%. The confidence interval at a 95% level of confidence is +/-3.0%. The regional breakdown used throughout the report is defined as follows: Midwest – Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, North Dakota, Nebraska, South Dakota and Wisconsin; Northeast – Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont; South – Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia; West – Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

© 2024 National Association of Realtors® (NAR)