A buyer agency agreement is a contract between a home buyer and their real estate agent. It details terms such as your agent’s fee and your timeline for working together.
These agreements aren’t new, but a 2024 lawsuit with the National Association of Realtors (NAR) — and its resulting rule changes — has put a spotlight on them. Now, buyer agency agreements are required before buyer's agents can provide any services, like showing homes.
As a buyer, you may be hesitant to sign a contract that commits you to a specific realtor. But a buyer agency agreement benefits you both by outlining terms in advance so there are no surprises later. It also gives you and your agent a clear way out of a partnership that no longer works.
An easy way to find the right buyer’s agent is through a free service like Clever Real Estate. Clever connects you with vetted local agents from reputable brokerages. You can compare options or walk away — there’s no obligation to sign a contract. Just answer five quick questions to receive profiles of top local agents.
What is a buyer agency agreement?
A buyer agency agreement is a formal contract stating that you and a specific agent will work together. Through this agreement, the real estate agent becomes your fiduciary, meaning they must work in your best interest.
Buyer agency agreements vary by state and brokerage, but they generally detail:
- The fee you’ll pay your agent (the national average is 2.75%)
- The specific duties your agent will perform
- How long you agree to work with that agent (typically 6–12 months)
- What’s expected from you
- How to get out of the contract
You can negotiate nearly everything in a buyer agency agreement, so review it carefully and discuss any terms you're not comfortable with.
Is a buyer agency agreement required?
As of 2024, buyers and their agents must sign a buyer agency agreement before the agent can begin providing their services. This requirement is the result of the NAR lawsuit settlement, which also mandated that buyers must now negotiate commissions directly with their realtors.[1]
“The recent NAR settlement has made buyers more informed [and made it clear] that agent compensation is negotiable and not automatically covered by the seller,” says Seann Malloy, founder and managing partner at Malloy Law Offices.
Traditionally, home sellers have paid the buyer’s agent fee and advertised the commission rate in their MLS listings. Now, the responsibility is shifted to the buyer, though they can still ask the seller to cover it via a concession. The buyer agency agreement will outline who covers the fee if the seller refuses to pay it.
“These agreements have become more specific, particularly with respect to how and when an agent will be paid if the seller does not cover the fee,” says Malloy.
Types of buyer agency agreements
There are two main types of buyer agency agreements: exclusive and non-exclusive. Basically, either you’ll work with one specific agent or you'll be free to work with multiple agents. An exclusive buyer agency agreement is the most common.
“[An exclusive contract] covers the most and allows the most access to properties, the agent, and the tools at the brokerage,” said Ryann Brier, a real estate agent in Grand Rapids, Michigan. “This agreement shows that you are going to pay the agent a fixed commission for their performance.”
Both types of agreements offer pros and cons to buyers.
Exclusive buyer agency agreement
Under an exclusive buyer agency agreement, the buyer commits to working with one agent for a set period. Brokerages prefer this because it ensures that their agent gets your business and money.
“It offers transparency, safeguards both sides, and enables me to devote all my time and resources [because] expectations and compensation are clearly spelled out in advance,” says Patrick Goswitz, a real estate agent with The Goswitz Team in Knoxville, Tennessee.
Working solely with one agent means you could get first access to new listings that match your preferences. But if you work with another agent during the contract term, you may still have to pay your original realtor’s fee — even if they didn’t help with the transaction.
✍️ Exclusive buyer agency example
Exact agreements vary by state and brokerage, but they generally specify the same information, like contract length, fees, and services. Here is an example buyer agency agreement that reflects the NAR settlement changes: Sample Buyer-Broker Exclusive Representation Agreement.
Non-exclusive buyer agency agreement
A non-exclusive or open buyer agency agreement lets you work with multiple agents. This freedom can be helpful if you’re not serious about buying soon. But agent performance can vary when using a non-exclusive agreement.
“The [agent] knows you’re not specifically loyal to them, and a commission is not guaranteed,” Brier said. “Therefore, they might try harder, or they might avoid this type of client altogether.”
You might also see a trial agreement, which gives agents a few days to show you properties. This gives you a preview of what you can expect before you sign a buyer agency agreement.
Should I sign an exclusive buyer agency agreement?
Whether you should sign an exclusive buyer agency agreement depends on where you are in your home search.
Exclusive contracts are best if you're committed to buying a house or you're searching in a competitive or unfamiliar market.
However, exclusive agreements are less ideal if you're casually looking at homes or trying to decide between a few markets. You also wouldn’t sign an exclusive contract if you’re still trying to decide which realtor to work with.
Keep in mind that refusing to sign a buyer agency agreement severely restricts the services an agent can provide.
When must a buyer agency agreement be signed?
Because of the 2024 NAR settlement, you must sign a buyer agency agreement before a real estate agent can represent you. This includes before touring homes with an agent, whether in person or virtually.[2]
If you’re simply visiting an open house or still interviewing agents, there’s no need to sign a contract. But once you choose a buyer’s agent, you’ll be required to sign an agency agreement.
Before signing a contract, you’ll want to watch out for some red flags, such as vague or unclear terms or a lengthy agreement duration (e.g., over 12 months). Also, be sure you understand whether you’re signing an exclusive or non-exclusive agreement.
Termination of a buyer agency agreement form
Not all buyer–agent relationships work out, which is why agreements include termination clauses. Termination terms should benefit both parties. Be sure you understand the terms before you commit.
“Before signing anything, it’s important that buyers have a clear idea of what will happen if the relationship doesn’t work out,” Malloy says.
If you need to terminate the contract, start by reviewing the terms of your agreement. These should include:
- The contract length: If your agreement ends soon, it may be simpler to wait it out. Otherwise, you may have to pay a fee for canceling early.
- Your agent’s responsibilities: Is there a certain duty your realtor is failing to fulfill? You can mention this when requesting termination.
- Grounds for termination: These are automatic grounds for termination, such as an ethical violation.
- Termination process: Your contract should specify the steps to terminate the contract.
- Financial consequences: You may have to compensate the agent if you terminate the agreement.
- Your rights and duties: These are your rights as a buyer, along with the duties you must perform.
Next, you’ll likely have to provide written notice, but that doesn’t necessarily mean an official letter. If you’ve already tried to resolve your differences with your agent and their brokerage, you can usually cancel via text, email, or even a phone call. Acceptable forms of communication should be outlined in your agreement.
You'll then pay any outstanding fees to the agent or brokerage. Beware that you could still owe the agent a commission if you go on to buy a house without them.
“What many people don’t realize is that if you terminate your buyer agency agreement and then buy a house without your broker (or one your broker showed you), you’re still liable for a commission,” said Cory Buscher, a realtor in Boise, Idaho. “That’s why you want to check to see if the contract has a ‘tail’ or ‘survival’ clause, and if it does, negotiate it or time your exit to avoid paying the extra costs.”
Once the agent or their brokerage accepts your cancellation and approves the agreement’s termination, you’ll typically both sign a release form. Keep this for your records.
How to find a good buyer's agent
Contracts can sound daunting, but the best real estate agents will walk you through a buyer agency agreement to ensure you clearly understand the terms. They should be open, transparent, and willing to negotiate their commission and other terms.
If you need help finding an agent, try Clever Real Estate. Clever's free service connects you with vetted, top-performing realtors in your area. You can interview multiple agents, and there’s no obligation to sign with anyone.
Clever’s free service connects you with a top local agent so you can:
✅ Find a home that fits your budget
✅ Get expert help negotiating your deal
✅ Earn $250–500 cash back at closing (in eligible states)
FAQ
What are buyer agency agreement laws?
Buyer agency agreement laws outline the terms that must be included in a contract between a home buyer and a real estate agent. Specific terms vary by state, but they generally include the agent’s commission, the services they will provide, and the duration of the agreement.
How to fill out an exclusive buyer agency agreement?
The realtor or their brokerage should provide a buyer agency agreement for you to review. You’ll complete your personal information and specify the agreed-upon terms, such as agent compensation and duties, the timeline for working together, and the process for terminating the contract.
