A Buyer Agreement is a binding contract that outlines the relationship between a real estate buyer's agent and a buyer. It specifies the services the buyer’s agent will provide at minimum, the terms of representation, where services will be rendered, and for how long the agreement will be valid, among other things. This agreement is required before a buyer can tour any property listed on the MLS, in person or virtually. A Buyer Agreement is a contract between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services
Buyer Agreement were made mandatory to ensure clarity, transparency, and mutual understanding between the buyer and the buyer’s agent. This requirement is part of broader changes aimed at protecting consumers and ensuring that all parties understand their rights and responsibilities.
The agreement must include:
Without a Buyer Agreement, a real estate agent is not allowed to show properties listed on the MLS to a buyer. This requirement ensures that all parties have a clear understanding of their relationship and the terms of service before any property viewings, in person or virtually, take place.
Yes, the specific terms and format of the Buyer Agreement can vary. Some states, agents, and brokerages may offer different forms of buyer's agreements, such as exclusive or non-exclusive representation. However, all Buyer Agreements must comply with the mandated transparency and disclosure requirements.
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While the mandate requirement for Buyer Agreements adds an additional step, it is designed to make the process more transparent and reduce misunderstandings or disputes later. The overall transaction process should remain largely the same, but with clearer communication and terms from the onset.
Real estate brokerages, agents and MLS members must adhere to the requirements, informing their buyer's properly, using compliant agreement forms accordingly, and ensuring they clearly explain the terms and significance of the Buyer Agreement to buyer's.
If you’re a homebuyer working with an agent who is a REALTOR®, it means you are working with a professional ethically obligated to work in your best interest.
Why am I being asked to sign a Buyer Agreement?
Buyer Agreements became a nationwide requirement for many real estate professionals as a part of the National Association of REALTORS®’ proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.
Are these agreements new?
In some places, yes. Many states have required them for years, while some have not. As a result, it is entirely possible you or others you know have not used them in the recent past. Regardless, they are now a nationwide requirement for many real estate professionals.
Are these Buyer Agreement negotiable?
Yes! You should feel empowered to negotiate any aspect of the agreement with your real estate professional, such as the services you want to receive, the length of the agreement, and the compensation, if any. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended or a range. Only sign an agreement that reflects what you have agreed to with your real estate professional.
How do I benefit from Buyer Agreements?
These agreements clearly lay out what services you (as a homebuyer) expect your real estate professional to provide, and what your real estate professional will be paid. These agreements make things clear and reduce any potential confusion at the outset of your relationship with your real estate professional.
When do I need to sign a Buyer Agreement?
You will be asked to enter into a Buyer Agreement with your real estate professional before “touring” a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.
Does this mean I have to pay my real estate professional out of pocket?
Not necessarily. While you are responsible for paying your real estate professional as outlined by your Buyer Agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.
Do Buyer Agreement dictate a specific type of relationship I need to have with my real estate professional?
No—you are allowed to enter into any type of business relationship with your real estate professional allowed by state law where you live.
Can I change or exit a Buyer Agreement?
Yes. You and your real estate professional can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the Buyer Agreement and speak with your real estate professional if you would like to change or exit your agreement. However, please be advised, any time an agreement needs to be changed, the agent must submit a new agreement which will supersed the original agreement.