Buyer Representation Agreement: What It Must Say and When You Need One

A buyer representation agreement is the written contract between a homebuyer and a brokerage that sets the agent's services, the term and how much the agent will be paid. Since August 17, 2024, NAR's rules require MLS participants working with a buyer to sign one before touring a home, in person or by live virtual tour.

More on this topic: TC and brokerage operations, every guide in one place.

State law can add to that, and in some states it now sets its own timing and contents. Below: what the agreement is, when it's required, what it must say, what “objectively ascertainable” compensation means, how Texas, California and Washington differ, and what a transaction coordinator or broker should keep on file.

Key takeaways

• NAR: a written agreement before touring, in person or live virtual. Talking to an agent at an open house or asking about their services doesn't need one.
• It must state the agent's compensation as a specific amount or rate (not open-ended), bar the agent from receiving more than that from any source, and say commissions are fully negotiable and not set by law.
• Texas (since January 1, 2026) requires an agreement before showing residential property or, if nothing is shown, before presenting an offer.
• California requires one no later than the buyer's offer, capped at three months with no automatic renewal; Washington requires one before or as soon as reasonably practical after services start.
• For the file: the signed agreement dated before the first showing, any amendments, the state's disclosure forms and a compensation figure that matches the CDA.

What is a buyer representation agreement?

It's the buyer's side counterpart to a listing agreement: a contract between the buyer and the brokerage (not just the individual agent) that appoints the agent, describes the services, sets a term and states compensation. It's also called a buyer-broker agreement or, in Washington, a services agreement.

NAR's guidance says the terms are negotiable and its policy doesn't dictate them: the agreement can cover one day, one month, one house or one ZIP code, and it can be a short-form or limited-service agreement. The common types:

• Exclusive buyer agency: one brokerage represents the buyer for the term.
• Non-exclusive: the buyer can work with more than one brokerage.
• Limited or short-term: for a single property or a short period, often used for one showing.
• Non-representation showing agreement: where state law allows it, as in Texas, a written agreement to show property without representing the buyer.

When is a written buyer agreement required?

Under the practice changes from the NAR settlement, which took effect on August 17, 2024, agents who use and list properties on an MLS need a written agreement with a buyer before touring a home. NAR says that covers in-person and live virtual tours, and that you don't need one if you're just speaking to an agent at an open house or asking about their services.

State law can set a different trigger, so the earlier one wins in practice:

Texas also changed open houses: an agent from the listing brokerage hosting one doesn't need agreements with visitors, but a host from outside the listing brokerage who doesn't represent the seller must provide the Information About Brokerage Services form and enter a written agreement with prospective buyers, according to TREC.

What must a buyer representation agreement include?

NAR's minimum, for agreements used by MLS participants:

1. A specific and conspicuous disclosure of the amount or rate of compensation the agent will receive, or how it will be determined.
2. Compensation that is objectively ascertainable and not open-ended.
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the agreed amount.
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.

NAR adds that agreements must include any provisions required by law, which is where the states come in:

• Texas (TREC): the services to be provided, the termination date (no more than 14 days for a non-representation agreement), whether it's exclusive or non-exclusive (non-representation agreements must be non-exclusive), whether the license holder represents the buyer, the amount or rate of compensation and how it will be determined, and conspicuous language that compensation isn't set by law and is fully negotiable.
• California (Civ. Code 1670.50): terms covering the broker's compensation, the services to be rendered, when compensation is due and how the contract terminates; the buyer's agent must give the agency disclosure form required by Civil Code 2079.14 before it's signed.
• Washington (RCW 18.86.020 and .080): the term (60 days by default for a buyer unless a longer one is chosen), the appointed broker, exclusive or non-exclusive, consent (or not) to limited dual agency, the amount the buyer agrees to pay the firm, consent to compensation sharing between firms or from more than one party, and whether the broker will show properties where no one has agreed to pay the firm.

What does objectively ascertainable compensation mean?

It means anyone reading the agreement can work out the number. NAR lists forms such as $0, a flat fee, a percentage or an hourly rate, and gives one example of what isn't allowed: “buyer broker compensation shall be whatever amount the seller is offering to the buyer.”

Two practical consequences for the file. The agent can't be paid more than the agreed amount from all sources combined, so a seller concession or a listing broker's off-MLS offer can't push the buyer's agent above it. And if the seller pays less than the agreed amount, the agreement decides what happens to the difference, so read that clause before the offer is written.

How long does a buyer agreement last, and can a buyer cancel?

Under NAR's policy the term is negotiable. State law can cap it: California limits agreements to three months from the date they're made (the cap doesn't apply to corporations, LLCs or partnerships), bans automatic renewal and makes any agreement that breaks those rules void and unenforceable. Washington's default buyer term is 60 days. Texas caps non-representation showing agreements at 14 days.

Cancellation terms are whatever the agreement says. A buyer who wants out early should read the termination clause and any protection period (a tail that can still entitle the broker to compensation for homes shown during the term).

Who pays the buyer's agent now?

Any of three sources, as the agreement and the purchase contract allow: the buyer directly, the seller through a concession the buyer negotiates in the offer, or the listing brokerage through an offer of compensation made off the MLS. NAR says offers of compensation are no longer allowed on MLS platforms, but sellers can still offer compensation off the MLS and can offer buyer concessions on it.

Seller concessions have their own ceilings on many loans; the free seller concessions limit calculator checks a concession against common loan-program limits. For the brokerage side, the buyer-side gross commission now comes from the buyer agreement and the purchase contract, so confirm the final figure before you work out the split (see commission split structures).

Buyer agreement vs listing agreement: what's the difference?

For the listing side, see the listing agent checklist.

What should TCs and brokers keep on file?

• The signed buyer agreement, dated on or before the first showing (or, in California, no later than the offer).
• Every amendment, extension or renewal, each signed and dated; in California a renewal must be in writing and signed by all parties.
• State disclosure forms that go with it, such as Texas's Information About Brokerage Services or California's 2079.14 disclosure.
• A compensation figure that matches the purchase contract's concession terms, any off-MLS offer from the listing side and the CDA.
• The agreement's expiration date, so a new offer isn't written on an expired agreement.
• Any referral agreement if the buyer came from another agent; see real estate referral fees.

In Closingbird, admins set the team's standard checklist and required documents by side, so a buyer agreement can be a required document on every buyer-side file and shows as Missing until it's uploaded; see the checklist and required documents. The broker compliance file review checklist covers the rest of what a broker checks, and your transaction coordinator intake form is the place to ask agents for the agreement when a deal comes in.

Frequently asked questions

Do I have to sign a buyer agreement to see a house?

To tour with an agent who uses an MLS, yes, under NAR's rules since August 17, 2024. Visiting an open house or asking an agent about their services doesn't require one. Some states, such as Texas, have their own written-agreement law.

Can a buyer agreement be for just one house?

Yes. NAR says the term is negotiable, for example one day or one house. State caps still apply, such as California's three-month limit.

Can the compensation be a range?

NAR requires the amount to be objectively ascertainable and not open-ended, and its guidance gives no example of a range. Ask your broker or state association whether your form allows one.

Does the seller still pay the buyer's agent?

Sometimes. A seller can agree to a concession in the purchase contract or the listing broker can make an offer off the MLS, but the buyer's agent can't receive more than the buyer agreement states.

Does the buyer agreement go in the transaction file?

Yes. Brokers generally keep it with the file, with any amendments and the state disclosure forms, for the state's record retention period. Texas, for example, lists buyer representation agreements among the records a broker keeps.

Is a buyer representation agreement the same as a purchase agreement?

No. The buyer agreement is between the buyer and their brokerage; the purchase agreement is the contract between buyer and seller for the property.

Make the agreement a required document

Closingbird adds your team's checklist and required documents to every file by side, so buyer agreements, disclosures and amendments show as missing until they're in. Start a free trial (14-day free trial, no credit card required) or see pricing.

Related reading

• Real estate commission split structures and the NAR settlement
• Broker compliance file review checklist
• Real estate referral fees
• Listing agent checklist
• Texas option period and contract deadlines
• Seller concessions limit calculator

Sources

Checked in October 2026. Rules and prices change, and many vary by state, so confirm with the source, your state's real estate commission or your broker before you rely on them.

• National Association of REALTORS: what the NAR settlement means for home buyers and sellers (practice changes effective August 17, 2024)
• National Association of REALTORS: Written Buyer Agreements 101 (checked October 30, 2026)
• TREC: What Changes in 2026 About Buyer/Tenant Representation in Texas (January 7, 2026; read from the Internet Archive copy of April 19, 2026)
• California Civil Code 1670.50, buyer-broker representation agreements (updated January 1, 2025)
• RCW 18.86.020, services agreements (Washington, 2023 c 318, effective January 1, 2024)
• RCW 18.86.080, compensation terms in services agreements (Washington)
• 22 Tex. Admin. Code § 535.2(h), broker responsibility: records kept four years (via Cornell LII)