Seller Compensation Addendum
Documents any compensation the seller agrees to pay toward the buyer's broker — a form that has become increasingly important following recent changes to how buyer-broker compensation is handled.
What Is This Document?
The Seller Compensation Addendum is used when a seller agrees to contribute toward the compensation of the buyer's broker as part of the purchase transaction. It documents the amount or percentage the seller will pay and becomes part of the purchase contract.
Following industry-wide changes to how buyer-broker compensation is disclosed and negotiated, this addendum has become a standard part of many Arizona transactions. Buyers who have signed a Buyer-Broker Exclusive Employment Agreement may negotiate for the seller to cover some or all of their broker's compensation through this addendum.
The addendum is negotiable — sellers are not required to offer buyer-broker compensation, and buyers are not required to ask for it. The terms are determined by the parties in the context of the overall offer.
Educational purposes only. Arizona real estate forms are updated periodically by the Arizona Association of REALTORS® and other issuing bodies. The current transaction documents control. This page provides a plain-English overview — it is not legal, tax, or professional advice. Consult a licensed real estate professional, attorney, inspector, water specialist, or other appropriate expert for guidance specific to your transaction.