Before August 17, 2024, most home buyers could tour properties with an agent, make offers, and close a deal without signing a single piece of paper about how that agent would be paid. That changed. A settlement between the National Association of Realtors and plaintiffs in a class-action antitrust lawsuit now requires member agents to have a written buyer representation agreement in place before showing a buyer any home. If you are shopping for a home in 2026, you will sign one. Knowing what it says - and what you can change before you sign - matters more than most buyers realize.
Why the written buyer agreement is now required
The August 2024 NAR settlement resolved claims that the traditional commission structure - in which sellers paid both the listing and buyer agent fees through a blanket MLS offer of compensation - violated antitrust laws by artificially inflating commissions and limiting price transparency.
One of the settlement's core requirements is that buyers must have a clear, written agreement with their agent before touring, spelling out exactly what the agent will be paid and who is responsible for paying it. The intent is to make buyer agent compensation visible and negotiable rather than buried inside the seller's proceeds.
NAR issued implementation guidance that took effect on August 17, 2024. The requirement applies to agents who are NAR members, which represents the large majority of practicing agents. Some states, including California under AB 2992 effective January 2026, have enacted parallel statutory requirements.
Key takeaway
A buyer agent agreement is a contract, not a formality. It specifies who you owe compensation to, how much, and under what conditions. Read every field before signing, the same way you would review a lease.
What the agreement must legally include
Under NAR's settlement terms, a written buyer agreement must include four elements:
A specific compensation amount or formula. The contract cannot say "whatever the seller offers" or leave the amount blank. It must state a number - a percentage of the purchase price, a flat fee, or a defined formula - that both parties agree to upfront.
A disclosure that compensation is negotiable. The document must explicitly state that agent compensation is not set by law and can be negotiated.
A prohibition on seeking more than the agreed amount. If the seller offers buyer agent compensation (as a concession in the purchase contract), the agent cannot collect more than the amount agreed to in the buyer agreement. If the seller offers less, the buyer makes up the difference.
The scope of the representation. This includes the geographic area, property types, and time period covered.
Beyond these required elements, the agreement typically specifies exclusivity terms, what happens if you buy a property directly from a seller or builder without the agent's involvement, and early termination procedures.
How buyer agent compensation is negotiated and paid
Before the settlement, sellers routinely offered buyer agent compensation through the MLS, and buyers rarely saw or thought about this number. Now buyers and their agents must agree on compensation before touring begins.
In practice, many buyers will encounter agents proposing agreements that mirror what sellers traditionally paid - commonly 2.5 to 3 percent of the purchase price. That figure is a starting point, not a floor. You can negotiate a lower percentage, a flat fee, or a tiered structure.
Payment flow depends on what the seller agrees to in the purchase contract. If the seller is willing to cover or contribute to the buyer agent fee as a concession, the money comes from the seller's proceeds at closing - the buyer does not write a check. If the seller pays nothing toward the buyer's agent, the buyer pays directly, typically at closing as part of the total cash-to-close figure.
See Realtor Commission Explained: Who Pays What in 2026 for the full picture of how commission flows after the settlement.
Can the seller still pay your buyer's agent fee?
Yes. Sellers can include buyer agent compensation as a concession in the purchase contract. This is one of the permitted uses of seller concessions, and many sellers in 2026 continue to offer it as a way to attract a broader pool of buyers (particularly buyers without cash to cover an agent fee separately).
The key difference from the pre-settlement era: the offer cannot be made through the MLS as a blanket standing offer. It is negotiated as part of the individual purchase contract. When you and your agent submit an offer, the offer may request that the seller pay a specified amount toward buyer agent compensation.
Your buyer agreement sets a ceiling, not a floor. If you agreed to 2.5 percent in your buyer agreement and the seller offers 3 percent, your agent cannot pocket the extra 0.5 percent - the NAR settlement rules prohibit agents from collecting more than the agreed buyer agreement amount. If the seller offers 2 percent and your agreement says 2.5, you cover the 0.5 percent difference.
How to negotiate the terms before you sign
Every field in a buyer agreement is worth reviewing. The items most worth negotiating:
Compensation rate. The figure is not fixed by law. If you are an experienced buyer in a market where properties are easy to find and transactions are straightforward, a lower rate or flat fee is a reasonable ask. The agent's counter is that a lower rate may affect their motivation on difficult negotiations - weigh that.
Duration. Shorter initial terms reduce your risk if the relationship does not work. Ask for 30 to 45 days with a renewal option rather than a 6-month exclusive upfront.
Geographic or property scope. If you are looking in a specific neighborhood or property type, consider limiting the agreement to that scope rather than granting a blanket exclusive across an entire metro.
Termination clause. Confirm that you can exit the agreement without penalty if the agent is not performing. Some agreements include a "protection period" - a clause that says if you buy a property the agent showed you within 30 to 90 days after termination, you still owe the fee. Understand that clause before signing.
New construction exception. Builder sales sometimes include a separate co-op commission structure. If you plan to tour new construction, clarify in writing how that affects your obligation under the agreement.
Tip
Ask the agent to walk you through the agreement clause by clause before you sign. An agent who is unwilling to explain what you are signing is telling you something important about how they will communicate through the rest of a transaction.
What happens if you want to switch agents mid-search
Switching agents while under an exclusive buyer agreement is possible but has costs and procedural steps. Most agreements include a written termination request provision. If you are within the exclusivity period, review whether the agreement includes any earned fee clause that would apply to homes the original agent already showed you.
For this reason, a short initial term with a renewal option is the cleanest structure. Once you have worked with an agent for a month, you have enough information to decide whether to renew.
If you signed an exclusive agreement in an area and then want to use a different agent for a different property type or geography, check the scope clause. A well-drafted agreement limited to a specific search criteria does not automatically extend to an unrelated transaction.
See How to Buy Your First Home: A Step-by-Step Guide for context on where the buyer agreement fits in the full purchase timeline - it comes before touring, which comes before your offer, which comes before earnest money.
Red flags to look for in a buyer agency agreement
Several provisions warrant careful review before signing:
Open-ended compensation language. Any clause that says the buyer is responsible for "the difference between the agreed amount and any amount not paid by the seller" without a clear cap is acceptable - that is how the settlement works. But language that allows the agent to seek more than the agreed amount is prohibited under NAR rules and should not be present.
Blanket geographic scope. If the agreement covers all of a large state or country rather than the area you are actually searching, you could be obligated to that agent on a transaction they had nothing to do with.
No termination provision. Every agreement should give you a clear path to exit with written notice.
Post-termination protection periods longer than 90 days. Protection periods of 30 to 60 days on properties the agent actually showed you are standard. Longer periods, or periods that apply to properties the agent never introduced to you, are negotiating points.
Warning
Do not sign a buyer agent agreement under time pressure at the front door of a showing. Any agent requiring a signature on the sidewalk before you see a single property, without giving you time to read the document, is creating conditions where you are likely to agree to terms you have not understood. Request the agreement in advance, review it, ask questions, and sign on your own schedule.
See Earnest Money Explained: How Much and When You Lose It for the next step in the buyer process - how the good faith deposit works once you find a property and make an offer.
Frequently asked questions
Is signing a buyer agent agreement required by law?
Not by federal or most state law directly - but the National Association of Realtors settlement terms, which took effect August 17, 2024, require NAR member agents to have a signed written buyer agreement in place before showing a home. Most practicing agents are NAR members. A handful of states have enacted their own statutory requirements. The practical effect is that most buyers will need to sign one.
What happens to my earnest money if I break a buyer agreement?
Earnest money and a buyer agency agreement are separate instruments. Earnest money is held in escrow against the specific purchase contract on a property. Breaking a buyer agreement before finding a home does not automatically forfeit earnest money because no purchase contract exists yet. Review any penalty or fee clause in your specific agreement before signing.
Can I negotiate the commission rate in a buyer agreement?
Yes. The agreement must specify the compensation amount or a formula for calculating it, and that figure is negotiable before you sign. You can propose a lower rate, a flat fee, or an hourly consulting arrangement. Agents are not required to accept your terms, but the negotiation is legitimate and the rate is not fixed by any law or rule.
What is an exclusive vs. non-exclusive buyer agent agreement?
An exclusive agreement means you work only with that agent for the duration and within the geographic or property scope defined in the contract. A non-exclusive agreement lets you work with multiple agents simultaneously; the agent who procures the property you buy typically earns the fee. Exclusive agreements typically offer stronger agent commitment but limit your flexibility.
Can I still tour open houses without signing an agreement?
NAR's settlement rules require a written agreement before a member agent shows a home, but open houses are an exception under current NAR guidance. You can attend an open house hosted by the listing agent without having signed a buyer agreement. However, the listing agent represents the seller, not you, so information you share in that context is not protected.
How long does a buyer agent agreement last?
Duration is set in the agreement and is negotiable. Some agents propose 90-day to 6-month terms. If you are uncertain about the agent or market timeline, propose a shorter initial term - 30 to 45 days is reasonable - with the option to renew. Avoid open-ended agreements with no expiration date.