Buyer Representation Agreements After the NAR Settlement: What Agents Need to Know

This article explains general industry practice and isn't legal advice. Requirements vary by state, MLS and brokerage. Check with your broker or a real estate attorney before changing how you use buyer agreements.

For years, many buyers worked with an agent on a handshake. That changed with the National Association of REALTORS® settlement. Since August 17, 2024, written buyer agreements are required before touring for agents who participate in an MLS. Agents who explain the agreement clearly turn it into a trust-builder. Agents who spring it on buyers at the front door of a showing create friction.

When you need a written buyer agreement

According to NAR's guidance on the settlement, MLS participants working with a buyer must enter into a written agreement before touring a home with that buyer. That includes:

• In-person tours of a home
• Live virtual tours, where you walk the buyer through a home in real time

It does not apply when a buyer is simply:

• Talking with you at an open house
• Asking about your services
• Getting general information before they decide to work with you

In practice, that means the agreement belongs in your first real meeting, usually the buyer consultation. Our buyer consultation checklist shows where it fits.

What the agreement must include

NAR's guidance says written buyer agreements must include:

1. A specific, conspicuous disclosure of compensation. The amount or rate the agent will receive, or how it will be determined.
2. An objectively ascertainable amount. A flat fee, a percentage or an hourly rate is fine. Open-ended terms like "whatever the seller offers" are not.
3. A cap on compensation. The agent can't receive more from any source than the amount in the agreement.
4. A negotiability statement. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.

Your state and brokerage may require more, such as agency disclosures, the term of the agreement or how it can be ended.

Other terms buyers will ask about

Even when they aren't required, clear answers to these questions prevent problems later:

• How long does it last? A shorter term with an easy renewal can make buyers more comfortable.
• Is it exclusive? Can they work with other agents during the term?
• What if a seller pays my agent? Explain how seller-paid compensation is credited against what's owed under the agreement.
• How do we end it? Spell out how either side can cancel, and any obligations after cancellation.
• What exactly will you do? List your services: searches, tours, offer strategy, negotiation, coordinating inspections and closing.

How to explain it to buyers

Buyers respond well when the agreement is framed as clarity, not paperwork:

Then go through it line by line. Answer questions directly. If a buyer wants to start with a single showing, some brokerages offer a short-term or single-property agreement, so ask your broker what's available.

A simple agreement workflow

1. Prepare the agreement before the consultation, with the client's name and your compensation filled in.
2. Walk through it together during the consultation.
3. Sign electronically so nobody has to print, scan or chase a signature. Electronic signatures are generally valid for real estate contracts under the federal ESIGN Act and state laws based on the UETA, though some documents and local practices have exceptions.
4. Store the signed copy with the client's record so you can find it in seconds.
5. Book the first tours right after. See how to plan a showing tour.

In BrokerMule, the Buyer Representation Agreement template fills in the client's name, phone and email automatically. Add your letterhead, edit the terms to match your broker's requirements, and click Email to request a signature. The signed PDF is saved to your documents. See documents and e-signatures.

Common mistakes to avoid

• Waiting until the first showing. You'll need it before the tour, so sign it at the consultation.
• Vague compensation. "To be determined" or "per the listing" won't meet the requirement.
• Rushing the conversation. A buyer who understands the agreement trusts you more.
• Using an outdated form. Brokerages updated their forms after the settlement. Use the current one.
• Losing track of expiration dates. Add the end date to your calendar so you can renew in time.