Is a buyer's agent agreement required?

As of August 2024 and following the NAR settlement, buyer-broker agreements are required before an agent can show you homes in most markets. Previously they were common but not universally mandated. Now virtually all agents require you to sign one before your first showing.

Can I cancel a buyer's agent agreement?

It depends on what the agreement says. Many buyer-broker agreements include a termination clause or a short notice period (typically 3–10 days). Before signing, ask specifically: 'How do I terminate this agreement if things aren't working out?' If the agent can't give you a clear answer, negotiate a cancellation provision before you sign.

What happens if I find a home on my own while under a buyer's agent agreement?

Under an exclusive buyer's agent agreement, you typically still owe your agent a commission even if you find the home independently — including FSBO properties. This is why the exclusivity clause matters. Read it carefully and discuss how privately-found homes are handled before you sign.

What Is a Buyer's Agent Agreement?

May 14, 2026

What a Buyer's Agent Agreement Is

A buyer's agent agreement (also called a buyer-broker agreement) is a legal contract between you and a real estate agent that defines the terms under which they'll represent you in purchasing a home. It specifies the agent's duties, the compensation they'll receive, the duration of the agreement, and the geographic scope.

Following the 2024 NAR settlement, these agreements became standard practice across the U.S. Before that settlement, many buyers never signed anything formal with their agent — now it's required before most agents will show you a home.

What the Agreement Typically Covers

Duration: Most agreements run 90 days to 6 months. Shorter is better for buyers who want flexibility.
Geographic area: The agreement usually covers a specific market or region. Make sure it's the area you're actually searching in.
Compensation: The agreement must now state, in writing, exactly what the buyer's agent will be paid — either a flat fee, an hourly rate, or a percentage of the purchase price (typically 2%–3%). This commission may be covered by the seller, but it must be agreed upon upfront.
Exclusivity: Exclusive agreements mean you can only work with that one agent during the term. Non-exclusive agreements allow you to work with multiple agents, though they provide agents less incentive to prioritize your search.
Duties: A well-written agreement lists what the agent will do — finding properties, setting up showings, advising on offers, negotiating, coordinating inspections, and guiding you through closing.

Types of Buyer-Broker Agreements

Exclusive Right to Represent

The most common type. Your agent earns their commission no matter how you find the home, and you agree not to work with other buyer's agents. In exchange, most agents commit their full effort to your search.

Non-Exclusive Agreement

You can work with multiple agents simultaneously. Whichever agent brings you to the home you purchase earns the commission. This gives you flexibility but often leads to less personalized service — agents prioritize clients they have an exclusive relationship with.

Limited-Service Agreement

The agent provides specific services only (e.g., contract review but not showings). Common with discount brokerages. Make sure you know exactly what you're getting before agreeing to this format.

What to Negotiate Before Signing

A buyer's agent agreement is a starting point for negotiation, not a take-it-or-leave-it document. Before you sign:

Push for a shorter term: Ask for 60–90 days instead of 6 months. Most agents will agree to a trial period.
Add a cancellation clause: Request a provision allowing either party to terminate with 10 days' written notice. Good agents will agree — they don't want to represent someone who doesn't want them either.
Clarify the FSBO and new construction rules: Understand how your agent handles homes you find independently or new builds where the builder has their own sales team.
Get the compensation terms in plain language: The agreement must state who pays the buyer's agent and how much. Make sure you understand what happens if the seller isn't offering to cover the buyer's agent fee.

How Buyer's Agent Compensation Works Now

After the NAR settlement, sellers are no longer required to offer buyer's agent compensation through the MLS. That means in some transactions, you as the buyer may need to pay your agent directly — typically 2%–3% of the purchase price — if the seller isn't covering it.

In practice, many sellers still offer to cover buyer's agent compensation because it maximizes their buyer pool. But it's no longer guaranteed. Your buyer's agent agreement should spell out what happens in each scenario.

Find an Agent Worth Signing With

The buyer-broker agreement is only worth signing if the agent is worth committing to. Browse top-rated buyer's agents in your area on our cities directory and compare their transaction histories before you put anything in writing.

Frequently Asked Questions

Is a buyer's agent agreement required?: As of August 2024 and following the NAR settlement, buyer-broker agreements are required before an agent can show you homes in most markets. Previously they were common but not universally mandated. Now virtually all agents require you to sign one before your first showing.
Can I cancel a buyer's agent agreement?: It depends on what the agreement says. Many buyer-broker agreements include a termination clause or a short notice period (typically 3–10 days). Before signing, ask specifically: 'How do I terminate this agreement if things aren't working out?' If the agent can't give you a clear answer, negotiate a cancellation provision before you sign.
What happens if I find a home on my own while under a buyer's agent agreement?: Under an exclusive buyer's agent agreement, you typically still owe your agent a commission even if you find the home independently — including FSBO properties. This is why the exclusivity clause matters. Read it carefully and discuss how privately-found homes are handled before you sign.