If you want to tour a home with a real estate agent today, there is a piece of paper you have to sign first. It is called a buyer-broker agreement (also called a buyer-agency agreement or buyer representation agreement), and since August 17, 2024, agents who belong to the National Association of Realtors are required to have you sign one before they walk you through your first house. If that sounds intimidating, take a breath. This is actually good news for you as a buyer, because a clear written agreement means you know exactly who your agent works for, what they will do, and what they will be paid. The trouble only starts when someone slides the form across the table and says “just sign here” without explaining it. This guide walks through the whole thing like a friend would, so you can sign with your eyes open.
What a buyer-broker agreement actually is
A buyer-broker agreement is a written contract between you and a real estate brokerage that spells out the relationship: the agent agrees to represent you in your home search, and you agree to certain terms in return, including how the agent gets paid. Think of it like the terms of an engagement. Before this rule, plenty of buyers worked with an agent for months on nothing more than a handshake, and the agent’s pay was quietly baked into the deal through the multiple listing service (the MLS, the shared database agents use to list homes). Most buyers never saw a number and never signed anything. That vagueness is exactly what the 2024 changes set out to fix.
The agreement does two big things. First, it defines the scope of representation, meaning what your agent is actually agreeing to do for you. Second, it states, in writing and in a specific dollar amount or percentage, how much your agent will be paid and where that money is expected to come from. No more mystery. You get to read it, ask about it, and negotiate it before you are on the hook for anything.
Why this became required in 2024
In 2024, the National Association of Realtors (NAR) agreed to settle a group of lawsuits over how agent commissions worked. The settlement, which included a $418 million payment, changed two practices that took effect nationwide on August 17, 2024. First, offers of buyer-agent compensation can no longer be posted on the MLS, so buyers and their agents now negotiate that pay deal by deal rather than assuming a set percentage is waiting for them. Second, any agent working with a buyer must enter into a written agreement with that buyer before touring a home, whether in person or virtually.
It is worth being clear about what did not change. Sellers are still allowed to offer to cover some or all of the buyer’s agent commission, they just cannot advertise it on the MLS. That offer is now negotiated directly, often as part of your purchase offer. And despite predictions that commissions would fall off a cliff, they have held remarkably steady. National data in early 2026 shows total commissions averaging around 5.7 percent of the sale price, with the buyer’s side running roughly 2.5 to 2.8 percent. In other words, the plumbing changed more than the price. What changed most for you is transparency, and that is where the buyer-broker agreement comes in. For a deeper walk-through of the settlement, see our NAR settlement explainer.
What the agreement must contain
Under the settlement terms, a compliant buyer agreement is required to include a few specific things. These are not optional niceties, they are the guardrails that protect you.
- A specific and objectively determinable amount of compensation. The agreement cannot say something vague like “whatever the seller offers.” It has to state an actual number, such as 2.5 percent of the purchase price, or a flat fee like $10,000, or an hourly rate. You need to be able to look at it and know exactly what you are agreeing to pay.
- A cap on what the agent can receive. If your agreement says the agent’s pay comes from the seller, it cannot let the agent collect more than the amount written in your agreement. So if you agreed to 2.5 percent and the seller offers 3 percent, your agent is held to the 2.5 percent you signed, not the higher number.
- A clear statement that broker fees are fully negotiable. The form must say, in plain terms, that commissions are not set by law and are negotiable between you and the broker. This is a legal requirement precisely because for years many buyers assumed the rate was fixed. It is not.
If a form you are handed is missing any of these, that is a signal to slow down and ask questions. A professional agent will have a compliant form ready and will be happy to walk you through each piece.
The key terms to read before you sign
Beyond the required pieces, an agreement contains several terms that you get to negotiate. Here is what each one means and why it matters.
The compensation rate
This is the headline number. It might be a percentage of the purchase price, a flat fee, or an hourly rate. Remember the cap rule: whatever you write here is the ceiling. In practice, buyers often agree to a rate (say 2.5 percent) and then, when making an offer, ask the seller to cover it. If the seller agrees, the money effectively passes through and you may pay little or nothing out of pocket. If the seller does not, you know upfront what you would owe. For a fuller picture of typical numbers and how the money moves, read how much a realtor costs.
The length or term
How long does this agreement last? Some run for a few months, others for a year. There is nothing wrong with a longer term if you love the agent, but if you are just meeting them, a shorter term (say 30, 60, or 90 days) lets you test the relationship without locking yourself in. You can always renew. Watch for agreements that auto-renew, and ask how the clock resets if you take a break from house hunting.
Exclusivity
This is one of the most important distinctions. An exclusive agreement means you commit to working with only this one agent during the term, and they earn their fee on any home you buy, even one you find yourself. A non-exclusive agreement lets you work with more than one agent, and only the agent who actually helps you buy gets paid. Many agents prefer exclusive because it protects their time. That can be fine, but understand you are making a commitment. If you are not ready for that, ask whether they will do a non-exclusive arrangement or limit exclusivity to specific properties they show you.
The exit or cancellation clause
Life happens, and sometimes an agent turns out not to be the right fit. Look for how you can end the agreement. Is there a clean way to cancel with written notice? Are there any fees for canceling? A confident, client-first agent will usually offer an easy exit, because they would rather keep you happy than trap you. If the only way out is buying a house, that is a yellow flag worth a conversation.
The protection period
Also called a holdover or safety clause, the protection period says that for some number of days after the agreement ends, the agent can still earn their fee if you buy a home they showed you during the term. The idea is fair on its face: it stops a buyer from touring a house with an agent and then trying to cut them out by waiting a week and buying it directly. But watch the details. The protection period should apply only to specific properties the agent actually introduced you to, ideally ones named on a written list, not to every home in the county. Ask that the clause be limited to properties you physically toured or that the agent presented to you in writing.
The services included
Since you are agreeing to pay for representation, it is fair to know what you get. A full-service agreement typically covers searching for homes, scheduling tours, running comparable-sales analysis so you can price your offer, writing and negotiating the offer, coordinating inspections and the appraisal, and shepherding you through closing. Some newer models offer à la carte or limited service for a lower fee. Neither is wrong, but you want the scope to match the price. If you are paying a full commission, expect full service.
How to negotiate the agreement
Here is the mindset shift that helps most first-time buyers: this is a normal business agreement, and everything in it is up for discussion. Agents negotiate for a living, so they will not be offended if you ask thoughtful questions. Here is a practical approach.
- Interview before you sign. Talk to the agent about their experience and how they work before committing to any form. Our guide on questions to ask a real estate agent gives you a full script.
- Start with a short term. Ask for 30 to 90 days on your first agreement. It lowers the stakes and lets the relationship prove itself.
- Ask about the rate directly. “What is your commission, and is that negotiable?” is a completely reasonable question. The form is legally required to state that fees are negotiable, so you are simply exercising a right the settlement guarantees you.
- Limit the protection period. Request that any holdover clause apply only to homes you actually toured, listed by address, not the whole market.
- Confirm the exit. Ask, “If this is not working out, how do I end it?” Get the answer in writing.
- Match services to price. If the fee is full freight, confirm you are getting full service. If you only need limited help, ask whether a lower fee is available.
You can also negotiate scope. For example, some buyers sign a property-specific agreement to tour a single home before committing to a broader exclusive relationship. That is a perfectly legitimate way to test drive an agent.
Red flags to watch for
Most agents are honest professionals. Still, a few warning signs are worth knowing so you can spot a lopsided deal.
- Rushing you to sign. “Just initial here so we can go see the house” is not how a fiduciary treats a client. You are entitled to read the whole thing.
- A vague or missing compensation number. The amount must be specific. Anything squishy is a compliance problem and a red flag.
- A very long term with no easy exit. A twelve-month exclusive agreement with no cancellation clause locks you in with someone you barely know.
- An overly broad protection period. If it covers every home in the area for months after you part ways, push back.
- Being told the rate is fixed. By law it is not. If an agent insists commissions are set and non-negotiable, that contradicts the required disclosure on the form itself.
- Pressure not to ask the seller to cover the fee. Asking the seller for a concession toward your agent’s compensation is a normal, allowed negotiating move. An agent who discourages you from even trying may be putting their certainty above your wallet.
None of these automatically means the agent is bad, but each deserves a straight answer before you sign. A good agent welcomes the questions.
Frequently asked questions
Do I really have to sign a buyer-broker agreement before touring a home?
If you are touring with an agent who belongs to the National Association of Realtors, then yes, they are required to have a signed written agreement with you before showing you a home, effective August 17, 2024. You can still attend a public open house on your own without one, and you can talk to an agent and interview them without signing. The agreement is triggered by touring homes together.
Does signing mean I have to pay the agent out of my own pocket?
Not necessarily. The agreement sets the maximum your agent can be paid, but sellers are still allowed to offer to cover the buyer’s agent commission, and you can ask them to as part of your offer. In many transactions the seller’s concession covers most or all of it. The agreement simply makes sure that if the seller does not pay, you already know what your obligation would be.
Can I negotiate the commission rate in the agreement?
Yes. Commissions are not set by law and are negotiable, and the agreement form is actually required to say so. You can discuss the rate, the term, exclusivity, and the protection period. Whether a particular agent will agree to your terms is up to them, but you always have the right to ask.
What is a protection or holdover period?
It is a clause saying that for a set number of days after the agreement ends, your agent can still earn their fee if you buy a home they showed you during the term. It exists to stop buyers from using an agent’s time and then cutting them out. Ask that it apply only to specific properties you actually toured, listed by address, rather than to the entire market.
What is the difference between an exclusive and non-exclusive agreement?
An exclusive agreement commits you to one agent for the term, and they earn their fee on any home you buy, including one you find yourself. A non-exclusive agreement lets you work with more than one agent, and only the one who helps you buy gets paid. If you are still getting to know an agent, a non-exclusive or short-term deal keeps your options open.
Can I cancel a buyer-broker agreement if it is not working out?
Often, yes, but it depends on what the agreement says. Look for a cancellation clause before you sign, and confirm whether written notice is enough and whether any fee applies. A client-focused agent will usually make it easy to part ways, since forcing an unhappy buyer to stay rarely ends well for anyone.
How long should the term be for a first agreement?
There is no legal minimum or maximum, but for a first agreement with a new agent, a shorter term of 30 to 90 days is a reasonable ask. It lets you evaluate the working relationship without a long commitment, and you can always renew if things go well.
Sources: National Association of Realtors, “Facts About the NAR Settlement” and practice-change guidance (nar.realtor); Consumer Financial Protection Bureau, buying-a-house resources (consumerfinance.gov); Consumer Federation of America, reports on buyer-agency agreements (consumerfed.org). Commission averages reflect national 2026 market data.
Last reviewed July 2026.