Working with an agent
Buyer agent agreements: what to read before you sign
Since August 17, 2024, agents who use a multiple listing service must sign a written agreement with a buyer before touring a home together. It is short, it is negotiable, and it decides what you will pay, so read it like a contract, because it is one.
Reviewed November 2026 · Written for Buy Home Tips from the sources listed below
The written buyer agreement became a standard step on August 17, 2024, when practice changes from the National Association of Realtors settlement took effect. Agents who use a multiple listing service and work with buyers must now have a written agreement before touring a home with you, in person or through a live virtual tour. You do not need one simply to visit an open house on your own or to ask an agent about their services.
The four required compensation terms
The agreement must include:
- A specific and conspicuous disclosure of the amount or rate of compensation the agent will receive, or how it will be determined.
- Compensation that is objective, such as $0, a flat fee, a percentage or an hourly rate, and not open-ended. It cannot say the agent will receive whatever the seller offers.
- A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate in the agreement.
- A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
If an agreement lacks any of these, ask why before signing.
The clauses beyond compensation
The required terms are only part of the document. Read these closely:
- Term. How long does it last? A short term, even a few days or one property, is possible. NAR's guidance says its policy does not dictate the term.
- Scope. Does it cover one home, a neighborhood, a city or every home you buy anywhere?
- Exclusivity. Can you work with other agents at the same time?
- Services. What will the agent do: search, tours, comparative pricing, negotiation, coordinating inspections, attending closing?
- Termination. How can either side end it, and do you owe anything for homes you were shown before it ended?
- Who pays, and when. Is the fee due only if you close? What if the seller pays part of it?
How seller payments fit in
A seller may still agree to pay your agent's compensation in whole or part, and you can still ask for concessions such as help with closing costs. What changed is that offers of compensation cannot be published on the multiple listing service, so it becomes part of your negotiation. Your agreement caps what your agent can receive in total.
Loan programs can limit seller contributions, and some count payments toward your costs differently, so ask your lender before writing a request into an offer. VA, for example, lists real estate professional fees among closing costs the buyer and seller can negotiate.
Questions to ask before signing
- What exactly will you do for this fee, and what will you not do?
- Can we shorten the term or limit it to a few properties to start?
- How do you handle negotiating seller payments toward your compensation?
- What happens if I want to end the agreement?
- Do you or your brokerage represent sellers, and how do you handle dual agency?
Use the calculator
Enter your expected price, the agreed rate or flat fee, and any amount you expect the seller to contribute. The calculator shows the compensation in dollars and what would be left for you to cover. Keep the agreement with your purchase documents; it is part of what you pay to buy the home.
Mini calculator: what your buyer agent would be paid
Buyer agreements now must state compensation in a way you can calculate. Convert a percentage or flat fee into dollars at your price range.
Compensation is negotiable and not set by law. The agreement you sign controls.
Before you sign a buyer agreement
- Ask for a blank copy of the agreement before the first meeting.
- Confirm the compensation is stated as a specific amount, rate or method.
- Check the term and narrow it if it is longer than you want.
- Check whether it covers one home, an area or every home you buy.
- Read how to end it and what you owe after it ends.
- Write down the services the agent will provide.
Questions buyers ask
Do I need a buyer agreement to go to an open house?
No. You do not need a written agreement to visit an open house on your own or to ask an agent about their services. It is required before you tour a home with an agent who uses a multiple listing service and is working with you.
Can the seller pay my agent?
Yes. A seller may agree to pay some or all of your agent's compensation, but offers of compensation cannot be posted on the multiple listing service. The agent cannot receive more than your agreement allows from any source.
Can I negotiate the buyer agent's fee?
Yes. Agreements must state that broker fees and commissions are fully negotiable and not set by law.
What if I find a house on my own while under an agreement?
Read the agreement. Many say the agent is owed compensation on any home you buy during the term in the covered area, even one you found yourself.
Sources checked for this page
- National Association of Realtors: what the settlement means for buyers
- VA: funding fee and closing costs (who pays closing costs)
- CFPB: buying a house
Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.