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Buyer representationagreement requirements

Since August 17, 2024, an MLS participant working with a buyer needs a written agreement before touring a home. It must state compensation as a specific amount, cap it, and say commissions are negotiable. Here is what that means for every buyer file your brokerage reviews.

What is a buyer representation agreement?

A buyer representation agreement is a written contract between a homebuyer and a real estate brokerage that sets out the services the agent will provide and how the agent will be paid. It is also called a buyer agency agreement, a buyer broker agreement, or a written buyer agreement. The name depends on your state and form publisher. The NAR practice rules below apply to all of them.

When is a written buyer agreement required?

Under the practice changes from the NAR settlement, which took effect August 17, 2024, MLS participants “working with” a buyer must enter into a written agreement before touring a home with that buyer. The rule covers in-person tours and live virtual tours (NAR, Written Buyer Agreements 101).

Not every conversation triggers it. NAR's consumer guide says a buyer who visits an open house on their own, or who asks an agent about their services, does not need to sign an agreement first.

What must the agreement include?

NAR lists five terms every written buyer agreement must contain:

  1. The amount or rate of compensation the agent will receive from any source, or how it will be determined, specified and conspicuously disclosed.
  2. An amount that is objectively ascertainable. Open-ended terms such as "whatever the seller is offering" do not qualify.
  3. A statement that the agent may not receive compensation from any source that exceeds the amount or rate in the agreement.
  4. A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
  5. Any other provisions required by law.

The consumer guide adds that compensation can be a flat fee, a percentage, an hourly rate, or $0, but not a range. Agents may not describe their services as free unless they receive no compensation from any source.

What a buyer agreement review looks like

Each check maps to a requirement above. Clean items clear on their own, and anything missing goes to a reviewer with the page it came from.

State law can add more

The fifth term is where states differ. Oregon is one example. According to Oregon REALTORS, HB 4058, effective January 1, 2025, requires a written buyer representation agreement that includes the buyer agent's statutory duties, directly or by referencing the Initial Agency Disclosure Pamphlet. The agreement can last no longer than 24 months unless renewed, and agents should meet whichever requirement, state or NAR, applies earliest.

Other states set their own agency, disclosure, and form rules. Check the forms your state association publishes and your brokerage's policy manual, and treat this page as a starting point, not legal advice. For state basics, see our compliance guides for Arizona, California, Florida, New York, and Texas.

What to check in every buyer file

A buyer agreement can look complete on day one and still cause a problem at closing. These checks cover both ends of the file.

  1. Confirm an agreement is in the file, signed by the buyer and the agent, with a date before the first showing.
  2. Confirm compensation is a specific amount or rate, not a range and not tied to what the listing side offers.
  3. Find the clause that caps the agent's compensation from any source at the agreed amount.
  4. Find the conspicuous statement that commissions are not set by law and are negotiable.
  5. Check the start date, end date, and any renewal against the dates of showings and the offer.
  6. Check for the terms your state requires, such as agency duties or a required disclosure.
  7. At closing, compare buyer-agent compensation on the settlement statement with the agreement. Any amount above the agreed figure is an exception.

These checks belong on the same list as the rest of the file. See the full transaction compliance checklist for the other documents a reviewer confirms.

Errors to look for

  • The agreement is dated after the first showing, or only one party signed it.
  • Compensation is written as a range, or as whatever the seller or listing broker offers.
  • The negotiability statement is missing or buried in fine print.
  • The agreement expired while the buyer was still touring or writing offers.
  • An amendment changed compensation but is unsigned, or the closing figures still do not match it.
  • The form version predates a state law change, so a required term is missing.

How brokerages review buyer agreements at scale

Checking these terms by hand means opening every buyer file, finding the agreement, and comparing dates and figures across documents. Joymore reads every contract, disclosure, and addendum the moment it arrives and checks it against your brokerage's documented requirements. Clean files clear automatically. When a required term is missing or the dates do not line up, the exception goes to your compliance team with a link to the document and page behind it, and agents keep working in the tools they already use.

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Common questions

What is a buyer representation agreement?

A buyer representation agreement is a written contract between a homebuyer and a real estate brokerage that sets out the services the agent will provide and how the agent will be paid. It is also called a buyer agency agreement, a buyer broker agreement, or a written buyer agreement.

Is a written buyer agreement required before showing a house?

Yes, for MLS participants working with a buyer. Under NAR practice changes that took effect August 17, 2024, the agent must have a written agreement with the buyer before touring a home, in person or by live virtual tour. NAR says a buyer visiting an open house on their own, or asking an agent about their services, does not need an agreement first.

Can a buyer agreement say the agent gets whatever the seller offers?

No. NAR guidance says compensation must be objectively ascertainable and not open-ended, and gives "whatever the seller is offering" as an example of what does not qualify. Compensation can be a flat fee, a percentage, an hourly rate, or $0, but not a range.

Is a buyer agency agreement the same as a buyer broker agreement?

Generally, yes. The names vary by state and form publisher, and the NAR written-agreement rules apply to all of them. State law can add required terms, so the forms themselves differ from state to state.

What should a brokerage check in a buyer agreement?

Check that it was signed before the first showing, states compensation as a specific amount, caps compensation from any source, says commissions are negotiable, covers the dates of the search, and includes any terms the state requires. At closing, compare buyer-agent compensation on the settlement statement with the agreement.

Can buyer agreement review be automated?

Much of it can. Joymore reads every contract, disclosure, and addendum on arrival and checks each file against the brokerage's documented requirements. Clean files clear automatically, and exceptions go to the compliance team with a link to the source document. The broker keeps responsibility for supervision and final judgment.

Check every buyer agreement automatically.

Connect your transaction, e-signature, and email tools to Joymore and every new file gets a compliance review the moment it arrives, with no work for real estate agents.

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