In response to a landmark settlement resulting from antitrust litigation against the National Association of REALTORS® (NAR), a significant shift took effect on August 17, 2024. Henceforth, homebuyers working with agents must sign a written buyer‑representation (or buyer‑broker) agreement before proceeding with home tours or other agent services(National Association of REALTORS®).
Prior to this change, many regions did not require such formal agreements, allowing buyers to casually work with multiple agents without commitment. However, the new provisions mandate that the agreement clearly outline the agent’s compensation — whether flat fee, percentage, or other method — and make explicit that it is fully negotiable and cannot exceed the agreed amount(National Association of REALTORS®).
This requirement promotes transparency in the agent‑buyer relationship and empowers buyers to negotiate terms upfront. It also discourages steering by listing agents by making agent commissions no longer automatically displayed on MLS listings(TIME).
In California, the rules are even more specific. Under Assembly Bill 2992, signed in late 2024 and effective January 1, 2025, buyers’ agents must obtain a signed buyer‑broker agreement “as soon as practicable,” and no later than when the buyer submits an offer. These agreements must include details such as the agent’s compensation, scope of services, term (maximum three months), and must avoid automatic renewal clauses(California Department of Real Estate).
While some consumer advocates worry about lengthy or confusing contract language, many see the changes as a step toward elevating professionalism in real estate by clarifying expectations and compensation from the outset(The Washington Post).
