If you’re planning to buy a home, you’ve probably heard about the Buyer Broker Representation Agreement. Since the National Association of REALTORS® (NAR) practice changes took effect on August 17, 2024, buyers working with a REALTOR® who is an MLS participant are generally required to sign a written agreement before touring a home.
Many buyers are surprised when they’re asked to sign this document. However, the purpose isn’t to make buying a home more complicated. Instead, it’s designed to provide transparency by clearly explaining your relationship with your real estate professional before you begin viewing properties.
In this guide, we’ll explain what a Buyer Broker Representation Agreement is, why it’s required, what it includes, and answer some of the most common questions buyers have.
What Is a Buyer Broker Representation Agreement?
A Buyer Broker Representation Agreement is a written contract between a home buyer and a real estate broker. It explains the services your REALTOR® will provide, how long the agreement lasts, how your agent will be compensated, and the responsibilities of both parties.
Rather than relying on verbal conversations or assumptions, everything is outlined in writing so you know exactly what to expect throughout the home-buying process.
Why Do REALTORS® Require a Buyer Broker Representation Agreement Before Showings?
Under the National Association of REALTORS® practice changes that became effective on August 17, 2024, REALTORS® who participate in a Multiple Listing Service (MLS) must enter into a written agreement with a buyer before providing a private home tour, whether the showing is conducted in person or through a live virtual tour.
The goal is to ensure buyers understand:
- Who represents them
- What services they will receive
- How their agent will be compensated
- The terms of their working relationship
This requirement promotes transparency and helps buyers make informed decisions before beginning their home search.
Does This Apply to Open Houses?
No. A written Buyer Broker Representation Agreement is not required simply because you:
- Attend an open house
- Contact an agent with general questions
- Interview REALTORS® before deciding who to hire
The agreement is generally required before your REALTOR® provides a private showing of a property.
What Does a Buyer Broker Representation Agreement Include?
Although forms vary by state and brokerage, most Buyer Broker Representation Agreements contain the same key sections.
1. Representation
This section explains that the broker will represent you during your home search. Depending on your state’s agency laws, your REALTOR® may owe fiduciary duties that include:
- Loyalty
- Honesty
- Confidentiality
- Disclosure
- Obedience to lawful instructions
- Reasonable care and diligence
- Accounting for funds and documents
These duties are designed to protect your interests throughout the transaction.
2. Services Your REALTOR® Will Provide
One of the most important sections explains exactly what services your REALTOR® agrees to provide.
These services often include:
- Search for homes that match your needs
- Schedule private showings
- Provide market information
- Prepare contracts and addendum (depending the state your in)
- Submit offers
- Negotiate price and contract terms
- Coordinate inspections and repairs
- Assist with financing deadlines
- Monitor important contract dates
- Work with lenders, attorneys, title companies, and other professionals
- Guide you through closing
The services included should always be discussed before you sign the agreement.
3. Length of the Agreement
Every Buyer Broker Representation Agreement must include a beginning date and an ending date.
The length of the agreement is negotiable and may vary depending on your situation.
Some agreements may last:
- One day
- One weekend
- Thirty days
- Three months
- Six months
- A specific property only
There is no National Association of REALTORS® rule requiring a specific contract length. Buyers and brokers determine the timeframe together.
4. Compensation
One of the biggest changes following the NAR settlement is that buyer broker compensation must be clearly explained in writing. The agreement must specify how your broker will be compensated.
Compensation may be structured as:
- A percentage of the purchase price
- A flat fee
Compensation is always negotiable.
It’s also important to understand that signing a Buyer Broker Representation Agreement does not automatically mean you’ll pay your REALTOR® out of pocket. Buyer broker compensation is typically handled in one of two ways. You may pay your broker’s compensation yourself, or you may request that the seller contribute toward the buyer broker’s compensation as part of your purchase offer. Whether the seller agrees depends on the negotiations. If you would like the seller to contribute toward your buyer broker’s compensation, let your REALTOR® know before you submit an offer. If the seller chooses not to contribute, you can decide whether to pay the agreed upon compensation yourself or choose not to make an offer on that particular property.
5. Buyer Responsibilities
Most agreements also outline the buyer’s responsibilities. These may include:
- Working honestly and in good faith
- Providing accurate information
- Communicating with your REALTOR®
- Following the terms of the agreement
- Cooperating throughout the transaction
6. Termination of the Agreement
Most Buyer Broker Representation Agreements explain how the agreement may end. The contract may describe:
- When the agreement reaches its expiration date
- By mutual written agreement between the buyer and broker
- At the successful closing of a home purchase
- After any applicable protection period for properties shown during the agreement has ended
Because every brokerage may use a different form, it’s important to read this section carefully and ask questions before signing.
Can You Negotiate a Buyer Broker Representation Agreement?
Yes. A Buyer Broker Representation Agreement is a negotiable contract. You and your REALTOR® may discuss:
- The length of the agreement
- The services provided
- The compensation
- Other terms permitted under your state’s laws
Never hesitate to ask questions if something is unclear. Your REALTOR® should explain every section before asking you to sign.
Why Is a Buyer Broker Representation Agreement Important?
A Buyer Broker Representation Agreement benefits both buyers and real estate professionals. For buyers, it provides:
- Clear expectations
- Written confirmation of services
- Transparency regarding compensation
- Confidence that someone is representing your interests
For REALTORS®, it establishes the professional relationship and confirms the services they will provide throughout the transaction.
Frequently Asked Questions
Is a Buyer Broker Representation Agreement required?
If you’re working with a REALTOR® who participates in an MLS and you want to privately tour a home, a written agreement is generally required before the showing.
Does signing the agreement lock me into buying a house?
No. The agreement creates a professional relationship between you and your broker. It does not require you to purchase a home.
Can I negotiate the agreement?
Yes. Items such as the contract length, compensation, and services provided are negotiable.
Do I have to pay my REALTOR® myself?
Not necessarily. Although the agreement explains how your broker will be compensated, buyers may request that the seller pay the buyer broker compensation as part of the purchase offer. Another option is to request a seller concession to help cover the buyer broker compensation.
Can I attend an open house without signing an agreement?
Yes. Simply attending an open house or speaking with a REALTOR® does not require a Buyer Broker Representation Agreement.
Final Thoughts On The Buyer Broker Representation Agreement
A Buyer Broker Representation Agreement is designed to make the home-buying process more transparent. It clearly explains who represents you, what services you’ll receive, how your REALTOR® will be compensated, and what each party agrees to throughout the transaction.
Before signing any agreement, take time to read it carefully and ask questions. A knowledgeable REALTOR® will walk you through each section so you understand exactly what you’re signing. Whether you’re buying your first home or your fifth, understanding the Buyer Broker Representation Agreement can help you begin your home search with confidence and peace of mind.
Sources: National Association of REALTORS® Consumer Guide to Written Buyer Broker Representation Agreement and Written Buyer Agreements 101.
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