Buyer agency agreements are now one of the most important documents in the homebuying process.
After the real estate commission rule changes that took effect in 2024, many buyers are asked to sign a written buyer agreement before touring a home with an agent. That agreement should explain what services the agent will provide, how the agent may be paid, and what the buyer is agreeing to before the relationship begins.
For buyers, the document can reduce confusion. For sellers, it changes how buyer-agent compensation is discussed. For agents and brokers, it makes clear communication and compliance more important than ever.
Key takeaways
- A written buyer agreement is required for many real estate professionals before touring a home with a buyer.
- NAR says the requirement went into effect on August 17, 2024.
- Written buyer agreements apply before in-person or live virtual home tours.
- Compensation must be clearly defined and not open-ended.
- Buyers may still request or negotiate for seller-paid compensation for their agent.
- Offers of compensation cannot be listed on MLSs, but may be shared off-MLS where allowed.
- State law, brokerage forms and local MLS rules can vary.
What is a buyer agency agreement?
A buyer agency agreement, buyer broker agreement, or written buyer agreement is a document between a buyer and a real estate professional.
At its simplest, it explains the services the agent will provide and how the agent will be paid. NAR’s consumer guide defines a written buyer agreement as an agreement that outlines the services the real estate professional will provide and what they will be paid for those services.
The phrase “buyer agency agreement” can sometimes be imprecise. Not every written buyer agreement creates the same legal relationship in every state. Some states distinguish among agency, non-agency, transaction brokerage and other permitted relationships.
That is why buyers should read the actual agreement, not rely only on the title.
When buyers need to sign one
NAR says written buyer agreements became a nationwide requirement for many real estate professionals as part of the proposed settlement of litigation related to broker commissions, and that the requirement went into effect on August 17, 2024. NAR’s consumer guide says buyers will be asked to enter into a written buyer agreement before touring a home with a real estate professional, either in person or virtually.
NAR’s Written Buyer Agreements 101 resource says an MLS Participant working with a buyer must enter into a written agreement before touring a home, including in-person and live virtual tours.
The open-house distinction is important. NAR says a buyer does not need to sign a written buyer agreement simply to visit an open house on their own or ask a real estate professional about their services.
What the agreement should explain
A buyer should understand the main terms before signing. The agreement should answer what services the agent will provide, how long the agreement lasts, whether the relationship is exclusive, what geographic area or property type it covers, how the agent will be paid, and what happens if the seller does not offer compensation.
NAR says compensation in written buyer agreements must be clearly defined and not open-ended. NAR’s settlement guidance says the agreement must include a specific and conspicuous disclosure of compensation, make compensation objectively ascertainable, prohibit the agent from receiving more compensation than agreed to with the buyer, and state that broker fees and commissions are fully negotiable and not set by law.
Does the buyer have to pay out of pocket?
Not necessarily.
NAR’s consumer guide says that while buyers are responsible for paying their real estate professional as outlined in the agreement, they can still request, negotiate for, and receive compensation for their agent from the seller or the seller’s agent.
That point is often misunderstood. The commission changes did not eliminate negotiation. They changed how compensation is disclosed, documented and communicated.
Sellers can still choose whether to offer compensation to a buyer’s agent. NAR’s offers-of-compensation guide says sellers may authorize compensation to a buyer’s agent, but the agent needs the seller’s written approval and signoff on the amount. NAR also says offers of compensation cannot be listed on MLSs, though they may be shared through off-MLS methods such as flyers, signs, brokerage websites, social media, phone calls or emails.
Offers of compensation vs. seller concessions
Buyers and sellers should distinguish between an offer of compensation and a seller concession.
An offer of compensation is specifically about paying another agent for bringing a buyer who successfully closes the transaction. A seller concession is different. NAR describes a concession as when a seller covers certain costs associated with purchasing a home for the buyer, such as transaction costs or property repairs.
That distinction matters because offers of compensation and concessions may be handled differently under MLS rules, contracts, lender guidelines and state law.
What this means
For buyers, the biggest change is that the agent relationship needs to be discussed earlier. Before signing, buyers should ask what services are included, how compensation is calculated, whether the agreement is exclusive, how long it lasts, whether it can be canceled, and how seller-paid compensation may be handled.
For sellers, the main change is that compensation decisions should be deliberate and documented. A seller may decide to offer compensation, decline to offer it, or negotiate it as part of a purchase offer.
For agents and brokers, buyer agreements are not just paperwork. They are now a front-end communication tool.
This article is general information, not legal advice. State law, brokerage forms and local MLS rules vary.
FAQ
Do I have to sign a buyer agency agreement to see homes?
If you are working with an MLS Participant or many real estate professionals, you will generally be asked to sign a written buyer agreement before touring a home in person or virtually. You do not need one simply to attend an open house on your own or ask an agent about their services.
Do I have to pay my agent out of pocket?
Not necessarily. Buyers are responsible for payment under their agreement, but they may still request or negotiate for the seller or seller’s agent to compensate their agent.
Can I cancel a buyer agency agreement?
Possibly. NAR says buyers and real estate professionals can mutually agree to change an agreement, and agreements may include specific conditions for exiting. State law and contract terms matter.
Can a seller still help pay a buyer’s agent?
Yes. Sellers can still choose to offer or authorize compensation to a buyer’s agent, but offers of compensation cannot be listed on MLSs.
Are real estate commissions fixed?
No. NAR guidance says broker fees and commissions are fully negotiable and not set by law.
Is a buyer agency agreement the same in every state?
No. State law, local forms, brokerage policy and MLS rules can vary. Buyers and sellers should read the actual agreement and consult a qualified attorney for legal advice.