Last Updated: January 2026

If you're planning to buy a home in 2026, you'll encounter something that wasn't always required: a buyer broker agreement. This contract between you and your real estate agent or REALTOR® has become a crucial part of the home buying process, especially after the landmark NAR settlement that changed how buyer's agents get paid and how broker compensation is handled.

Whether you're a first-time home buyer or an experienced investor, understanding what a buyer broker agreement is, what terms to negotiate, and how to protect yourself is essential before you start touring homes. The National Association of REALTORS® now requires you to sign a written buyer agreement before any real estate professional can show you MLS-listed homes. In this comprehensive guide, we'll explain everything you need to know about written buyer agreements and how the new rules affect your home search.

The National Association has published consumer guides including a consumer guide to written buyer agreements that explains these new requirements. Changes related to the NAR settlement mean you must now enter into a written buyer agreement before touring homes. Whether you call it a buyer-broker agreements document, buyer brokerage agreement, or brokerage agreement, understanding this document is critical for anyone working with a buyer's agent. A buyer agreement is an agreement between you and the brokerage, and any agent with a valid real estate license must present one.

What Is a Buyer Broker Agreement?

A buyer broker agreement (also called a buyer representation agreement, buyer agency agreement, or buyer brokerage agreements) is a legally binding contract that establishes a formal relationship between a home buyer and a real estate brokerage. These written buyer agreements outline exactly how the buyer's agent will represent you, what services they'll provide, how broker commissions will be paid, and for how long the agreement may remain in effect.

Think of it as your employment contract with your buyer's agent or REALTOR. This document is essentially a real estate professional outlining how they'll work on behalf of the buyer. Just as you wouldn't start a job without knowing your salary and responsibilities, you shouldn't begin a home search without understanding the terms of the agreement and your relationship with your real estate professional. When working with a buyer, any licensed agent must now have this agreement in place, and the buyer's broker must explain it clearly.

Key Components of a Buyer Broker Agreement

Every buyer broker agreement should clearly define these essential elements:

• Parties involved: Your name and the brokerage (not just the individual agent)
• Duration: The start and end dates of the agreement
• Geographic area: Where the agent will help you search for properties
• Property type: The type of home you're looking for (single-family, condo, multi-family, etc.)
• Agent duties: Specific services the agent agrees to provide
• Compensation: How much the buyer's agent will be paid and by whom
• Termination clause: How either party can end the agreement

Why Are Buyer Broker Agreements Now Required?

The requirement for written buyer broker agreements stems from the historic NAR settlement that took effect on August 17, 2024. This settlement resulted from multiple lawsuits challenging how real estate commissions were structured and disclosed in the United States.

The NAR Settlement Changes

Before the settlement, the seller typically paid both the listing agent and the buyer's agent through a commission split offered on the MLS, effectively providing compensation to buyer brokers automatically. Similar to how a listing agreement defines the relationship between seller and agent, the buyer side had informal arrangements. Buyers often didn't realize their agent was being paid by the seller, which critics argued created conflicts of interest and inflated home prices.

The settlement introduced two major changes:

1. Commission offers removed from MLS: Sellers can no longer advertise buyer agent compensation on MLS listings
2. Written agreements required: You must sign a buyer broker agreement before any agent can show you properties

These changes mean buyers now have more transparency about what their agent costs and more control over negotiating compensation. REALTORS® who are members of NAR must follow the organization's Code of Ethics, which now emphasizes clear disclosure of compensation. However, it also means buyers may need to pay their agent directly if the seller doesn't offer compensation. Remember: commission rates are negotiable and not set by law or any organization.

Types of Buyer Broker Agreements

Not all buyer broker agreements are the same. Understanding the different types helps you choose the arrangement that best fits your needs:

Exclusive Buyer Agency Agreement

An exclusive buyer agency agreement is the most common type. Under this contract:

• You work exclusively with one brokerage during the agreement period
• The agent commits to representing your interests throughout the home search
• If you purchase any property during the contract term, the agent earns their commission
• You cannot work with other agents unless you terminate the agreement

Best for: Buyers who want dedicated, full-service representation and have found an agent they trust.

Non-Exclusive Buyer Agency Agreement

A non-exclusive agreement offers more flexibility:

• You can work with multiple agents simultaneously
• The agent who shows you the property you purchase earns the commission
• Agents may provide less dedicated service since they're not guaranteed your business

Best for: Buyers still evaluating agents or searching in multiple geographic areas with different local experts.

Single-Property Buyer Agreement

Some agents offer agreements limited to a single property or showing:

• Covers one specific property address only
• Expires after you view that property or make a decision
• Useful when you want to see a home without committing to a long-term relationship

Best for: Buyers who found a specific property online and want professional representation for just that transaction.

What to Negotiate in Your Buyer Broker Agreement

Remember: everything in a buyer broker agreement is negotiable. Don't sign a standard form without reviewing and potentially modifying these key terms:

1. Commission Rate

The buyer agent's commission is now fully negotiable. While rates historically hovered around 2.5-3% of the purchase price, you may be able to negotiate:

• A lower percentage: Some agents accept 2% or less, especially in competitive markets
• A flat fee: A fixed dollar amount regardless of purchase price
• Hourly rate: Pay for actual time spent (less common but gaining traction)
• A cap: Maximum commission regardless of home price

2. Who Pays the Commission

Your agreement should clearly state who will pay the buyer's broker. The amount of compensation and compensation must be clearly defined in the contract:

• Whether you'll pay the agent directly
• Whether you'll seek seller concessions to cover the buyer's agent fee
• What happens if the seller offers compensation (does it reduce what you owe?)

3. Duration of Agreement

Be cautious about long-term commitments:

• Start with 30-90 days rather than 6 months or a year
• Include renewal terms if you want to continue working together
• Avoid open-ended agreements with no expiration date

4. Termination Clause

This is crucial for protecting yourself:

• Can you terminate with written notice?
• Is there a penalty for early termination?
• What happens with properties you've already viewed?
• Is there a "protection period" after termination?

5. Geographic Area and Property Type

Be specific about your search parameters:

• List the cities, counties, or zip codes where you're searching
• Specify the property types covered (residential, investment, land, etc.)
• Exclude areas where you might want to use a different local expert

6. Duties and Services

Ensure the agreement specifies what your agent will provide:

• Property searches and new listing alerts
• Scheduling and attending showings
• Market analysis and pricing guidance
• Offer preparation and negotiation
• Coordination with lenders, inspectors, and title companies
• Guidance through closing

Red Flags to Watch For

When reviewing a buyer broker agreement, be wary of these warning signs:

• Pressure to sign immediately: A good agent gives you time to read and understand the contract
• Excessively long terms: Agreements longer than 6 months are usually unnecessary
• No termination clause: You should always have a way out
• Vague compensation terms: The exact commission amount and payment responsibility should be crystal clear
• Broad protection periods: Some agreements claim commission on any home you buy months after termination
• Unreasonable duties required of you: Like not communicating directly with sellers or their agents

How Buyer Agent Compensation Works Now

Understanding your payment options is critical in the post-settlement real estate transaction landscape. A buyer-broker agreement provides clarity on who pays what. For real estate educational resources, see the links to NAR consumer guides below:

Option 1: Seller Pays (Concession)

Even though commission offers are no longer on the MLS, sellers can still agree to pay buyer agent compensation through a compensation agreement:

• Your agent can negotiate with the seller to cover commission as part of the deal
• You can ask for the seller to pay your agent's commission in your purchase offer
• The seller agrees to pay your agent as part of closing
• This can be negotiated alongside price and other terms, the agreement provides flexibility

Option 2: Buyer Pays Directly

You may need to pay your agent's commission:

• Out of pocket at closing
• Financed into your mortgage (if your lender and loan program allow)
• Through a combination of seller concession and your funds

Option 3: Commission Credit

Some buyers negotiate agent commission credits. The broker may offer flexible arrangements:

• If the seller has compensation offered that's more than your agreed commission, the excess may be credited to closing costs
• Your agreement should address how excess compensation is handled when a buyer enters into the contract

Questions to Ask Before Signing

Before signing any buyer broker agreement, ask your prospective agent:

1. What is your commission rate, and is it negotiable?
2. Can we start with a shorter trial period?
3. How can I terminate this agreement if things aren't working?
4. What happens if the seller offers to pay your commission?
5. What specific services do you provide for this fee?
6. How many buyers are you currently working with?
7. What happens if I find a home on my own or through a builder?

State-Specific Requirements

While NAR policy and MLS policy create baseline requirements, individual states may have additional rules. State law and local MLS rules can vary significantly:

• Disclosure requirements: Some states require specific disclosures about agency relationships
• Form requirements: Many states have approved forms that must be used for real property transactions
• Attorney review: Some states require or recommend attorney review of contracts
• Dual agency rules: Affects agreements when looking at your agent's own listings
• Length of the agreement: Some states limit how long a buyer agreement must be

Always verify your state's specific requirements. The services identified in the agreement should comply with local regulations, so consider consulting a real estate attorney if you have concerns about agreement terms.

Frequently Asked Questions

Can I buy a home without a buyer broker agreement?

If you want to work with a real estate agent who uses MLS listings, you'll need a buyer broker agreement. However, you can still:

• Buy directly from a For Sale By Owner (FSBO) seller without representation
• Purchase new construction directly from builders (though an agent can still help)
• Work with a real estate attorney instead of an agent in some states

What if I already found a home I want to buy?

Even if you've already identified a property, you'll still need a buyer broker agreement before an agent can formally represent you or show you the home. Consider a single-property agreement in this case.

Can I have multiple buyer broker agreements?

It depends on the type of agreement:

• Exclusive agreements: No, you're committed to one brokerage
• Non-exclusive agreements: Yes, you can work with multiple agents
• Single-property agreements: You could have different agents for different properties

What happens if I break the agreement?

Consequences depend on your contract terms but may include:

• Paying the agreed commission if you buy a home during the protection period
• Potential legal action for breach of contract
• Damage to your reputation with other agents in the area

This is why negotiating a fair termination clause upfront is so important.

Tips for a Successful Agent Relationship

Once you've signed a buyer broker agreement, set yourself up for success:

• Communicate clearly: Share your must-haves, dealbreakers, and budget honestly
• Be responsive: In competitive markets, quick decisions matter
• Trust but verify: Do your own research on properties and neighborhoods
• Provide feedback: Let your agent know what's working and what isn't
• Read everything: Never sign documents you don't understand

The Bottom Line

Buyer broker agreements are now a standard part of the home buying process. While this change requires more upfront discussion about agent compensation, it ultimately gives buyers more transparency and control. The key is to:

1. Understand what you're signing before touring homes
2. Negotiate terms that work for you, including commission and duration
3. Choose an agent who communicates clearly and respects your questions
4. Know your exit strategy with a reasonable termination clause

With the right preparation and the right agent, a buyer broker agreement protects both parties and sets the foundation for a successful home buying experience.