Which compensation form should I use when working with a FSBO seller as a buyer’s agent?
QUESTION: I have a client who wants to put an offer on a home that is for sale by owner. Since the seller is unrepresented, I want to make sure I am handling the transaction properly with respect to my compensation. Can I use Form 220 (Buyer Agent Compensation Addendum) if the seller is willing to pay a portion or all of my commission? Or am I required to use Form 150 (Unrepresented Seller Disclosure and Fee Agreement) instead?
ANSWER: The answers to your questions are yes and no, respectively. Either form can be used when dealing with an unrepresented seller, but determining which form is more appropriate will depend on the factual circumstances of the situation. Below are some things to consider as you make your decision.
Form 150 is a direct agreement between an unrepresented seller and a buyer’s agent. The agreement states that the seller will pay the buyer agent a fee if the seller enters into purchase contract with your buyer before the deadline specified in paragraph 1. It is not an addendum to be used by the buyer and seller, and it is a separate agreement designed to be signed before the buyer and seller sign a purchase contract.
The previous version of Form 220 had some overlap with Form 150, but the new version released on July 1 does not. New Form 220 is designed to be an addendum that is attached to a purchase contract, and it is an agreement only between the buyer and seller where the seller agrees to provide the buyer a credit at closing so that the buyer can, in turn, pay their agent.
Since Form 150 and Form 220 can both be negotiated when dealing with an unrepresented seller, there are many different scenarios where they may be used.
For example, if you encounter an unrepresented seller that is hesitant to commit to the terms of Form 150 before they receive an offer, then you may still use Form 220 with the purchase contract if your client makes an offer. Since Form 220 is an addendum, any material changes to Form 220 by the seller means that a counteroffer has been made, and therefore your client will not be stuck with a contract that does not address an important term of the deal.
As another example, your buyer may want assurance from the seller that compensation is available before they even agree to tour a property or make an offer. In that case, Form 150 is more appropriate, because it is meant to be used before an offer is presented.
Whichever form you decide to use, just note that you should not use both. After negotiations, use one or the other in each transaction.
Release Date: 8/6/2026
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