Raise this with your agent
- Required before touring a home with an agent who uses an MLS, since August 17, 2024.
- Pay must be objective: $0, a flat fee, a percentage or an hourly rate, never a range.
- Commissions are fully negotiable and not set by law.
If you have shopped for a home recently, an agent has probably asked you to sign a written buyer agreement before showing you a house. For many buyers this is new and a little unsettling. It does not need to be. The agreement simply puts in writing what your agent will do for you and how they will be paid. Read it the way you would read any contract: slowly, and with the right questions.
Where the requirement came from
Written buyer agreements became a nationwide requirement for many real estate professionals as part of the National Association of REALTORS settlement of litigation over broker commissions. The practice changes took effect on August 17, 2024. Some states already required buyer agreements for years; in others, they were rare. Now they are standard for agents who use a Multiple Listing Service.
When you have to sign
- Before touring a home with the agent, whether the tour is in person or a live virtual tour.
- Not when you simply visit an open house on your own.
- Not when you are just asking an agent about their services.
That gives you room to interview several agents before you commit to one. Use Questions to Ask a Buyer’s Agent Before You Sign for those conversations.
What the agreement must say
Under the settlement terms, agreements used by agents on an MLS must include four things:
| Requirement | What it means for you |
|---|---|
| A specific, conspicuous statement of the compensation | You see the amount or rate, or exactly how it will be determined, up front |
| Objective compensation | Stated as $0, a flat fee, a percentage or an hourly rate; not open-ended, such as whatever the seller offers |
| A cap from any source | The agent cannot receive more than the amount in your agreement, even if more is offered |
| A statement that fees are negotiable | Broker fees and commissions are fully negotiable and not set by law |
Everything is negotiable
NAR’s consumer guide encourages buyers to negotiate any part of the agreement: the services, the length of the agreement and the compensation, if any. Common points to discuss include how long the agreement runs, whether it covers a particular area or type of home, and what happens if you buy a home you found yourself. Only sign an agreement that matches what you actually agreed on.
Tip: A shorter first term, for example a few weeks or a couple of months with the option to extend, lets you test the working relationship without a long commitment.
Who actually pays
Signing an agreement does not necessarily mean you will pay your agent out of pocket. You are responsible for the compensation in your agreement, but you can still request, negotiate for and receive payment for your agent from the seller or the seller’s agent. In practice, buyers often ask for this in the offer. Offers of compensation are no longer allowed on MLS platforms themselves, but sellers can still offer them off the MLS, and sellers can offer buyer concessions such as help with closing costs on the MLS.
Because the seller’s willingness to help can vary from home to home, think about how much cash you would need if the seller says no. Plan your budget so that answer does not end your purchase. See How a Buyer’s Agent Helps You Write and Negotiate an Offer.
Common terms worth reading twice
Beyond pay, a few clauses deserve a careful read. Look at the term, the start and end dates, and whether it renews on its own. Check the scope: some agreements cover a specific area, price range or type of property, while others cover any home you buy during the term. Read what happens if you buy a home you found without your agent, or buy shortly after the agreement ends, because some agreements still entitle the agent to payment in those cases. Finally, check whether the agreement is exclusive, meaning you work with only this agent, or allows you to work with others. None of these terms is good or bad in itself; what matters is that you understand and accept them.
Changing or leaving an agreement
You and your agent can change the agreement by mutual agreement. Agreements may also have specific conditions for ending them. Read those terms before you sign, and if you want to change or exit, talk with your agent first. For questions about your state’s rules, NAR suggests consulting your real estate professional or an attorney.
Checklist before you sign
- The compensation is a clear figure or rate, not a range.
- You understand how seller-paid compensation would be handled.
- The length of the agreement is acceptable to you.
- The services listed match what you discussed.
- You know how to end it if it is not working.
- You know whom the agent represents, including in their own brokerage’s listings.
A written agreement can feel like a hurdle, but it protects you as much as the agent. It turns vague promises into specific ones and removes the old question of who the agent is really working for. Back to How to Choose a Buyer’s Agent You Can Trust.