No law requires you to sign a buyer-broker agreement before purchasing a home, so the question of whether you have to sign a buyer broker agreement has a technical answer and a practical one. Technically, no. Practically, since August 2024, any agent affiliated with a Multiple Listing Service tied to the National Association of Realtors must have a signed written agreement with you before showing you a single property.1National Association of Realtors. Summary of 2024 MLS Changes That covers most agents in the country. You can refuse. You just won’t get shown any homes by an agent who follows the rules.
Why Agents Now Insist on a Signed Agreement
The requirement traces back to the Sitzer/Burnett antitrust case, in which a jury found in 2023 that NAR and several major brokerages had maintained rules that inflated buyer-agent commissions.2Real Estate Commission Litigation. Burnett Settlement NAR settled and agreed to rule changes that took effect in August 2024. Two of those changes reshape how you shop for a home.
Sellers and listing agents can no longer advertise buyer-agent compensation through the MLS.3National Association of Realtors. No Compensation Offers in MLS – Policy Statement 8.11 Sellers can still offer to pay your agent, but that happens outside the listing. And every agent working with a buyer must have a written agreement in place before touring a home.1National Association of Realtors. Summary of 2024 MLS Changes The informal handshake period is over.
What Happens if You Refuse to Sign
Most agents will politely decline to work with you. They aren’t being difficult. MLS rules prohibit them from touring homes with you without a written agreement, and their brokerage compliance officer is watching.
You can still buy a home without representation. Nobody stops you from attending open houses, contacting sellers directly, or buying a for-sale-by-owner property. But you handle everything yourself: researching comparable sales, arranging inspections, reviewing disclosures, drafting or reviewing the purchase contract, and negotiating repairs. The listing agent at an open house works for the seller. They can share basic property information but owe you no loyalty, no confidentiality, and no advice. If something goes wrong, no professional is advocating for you.
A middle path exists. NAR’s rule does not dictate the length of the agreement. You can sign a single-showing agreement for one property, or a short-term contract of a few weeks, and reassess before committing further.4National Association of Realtors. Written Buyer Agreements 101
What the Agreement Must Include
If you do sign, NAR’s rules require four elements in every written buyer agreement:1National Association of Realtors. Summary of 2024 MLS Changes
- A conspicuous disclosure of the specific amount or rate the agent will receive. This can be a flat fee, a percentage, an hourly rate, or zero.
- Objective compensation terms. The amount cannot be open-ended, and phrasing like “whatever the seller offers” no longer qualifies.
- A compensation cap. The agent cannot receive more from any source than the amount stated in the contract.
- A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.
That last element matters. The document you’re being asked to sign is required to tell you that everything in it is negotiable. If an agent describes their commission as standard or fixed, the contract itself contradicts them.
Terms Worth Negotiating Before You Sign
Term Length
Duration is open. A 30 to 90-day term gives you a trial period with a new agent, and you can renew if things go well. Signing an exclusive six-month or year-long agreement with someone you just met is one of the more common regrets buyers report.
Commission Rate
The amount you agree to is a ceiling, not a floor. Your agent cannot collect more than that number from any source, including the seller. If the seller offers to pay your agent’s fee, it counts toward the cap. You can also ask in your purchase offer that the seller cover part or all of the commission as a closing concession.5National Association of Realtors. Consumer Guide to Written Buyer Agreements
Geographic Scope
Some agreements limit representation to a specific area or ZIP code. If you’re searching across multiple neighborhoods or counties, make sure the scope matches your actual search. A narrow geographic clause leaves you free to work with a different agent elsewhere.
The Protection Period
Most agreements include a protection period, sometimes called a tail clause. After the contract expires, you still owe commission if you buy a property the agent showed you or introduced to you during the term. This window typically runs from 30 to 180 days. Protection usually ends if you sign an exclusive agreement with a different agent after the original contract expires. Negotiate this window down before signing, and make sure the contract identifies which properties are covered.
Types of Agreements You Can Choose
NAR does not require any particular structure.4National Association of Realtors. Written Buyer Agreements 101 Three forms are common.
An exclusive right-to-represent agreement is the most common. Your agent earns commission if you buy any property during the term, regardless of who found it. Strongest incentive for the agent, tightest lock-in for you.
An exclusive agency agreement ties you to one agent but carves out an exception for properties you find and negotiate entirely on your own. Useful if you want professional help but expect to do some independent searching.
A non-exclusive or open agreement lets you work with multiple agents at once. Only the one who helps you close earns the commission. Agents tend to invest less in these arrangements because they’re competing without a guaranteed return.
Getting Out Early if You’ve Already Signed
Start with the termination clause. Most agreements require written notice to both the agent and their managing broker, stating that you want to terminate and the effective date. You don’t always have to give a reason, but a concrete issue like poor communication or missed showings makes the request harder to push back on.
Some contracts include an early termination fee meant to compensate the agent for time already spent. Others allow either side to terminate with a specified number of days’ notice at no cost. If the agent or broker resists, escalate to brokerage management. Most agents prefer to release an unhappy client rather than force a relationship that leads to complaints.
Termination does not erase the protection period. You may still owe a commission on properties the agent introduced to you, even after the relationship ends. Get a written list of covered properties before you sign with anyone new.
Two Situations That Change the Calculation
VA Loan Buyers
Veterans using VA-backed loans have historically been prohibited from paying real estate brokerage fees. The NAR settlement created a conflict, because sellers no longer automatically cover buyer-agent commissions. In August 2024, the VA issued a temporary variance allowing veterans to pay reasonable buyer-broker charges out of pocket, as long as the fees are not rolled into the loan amount.6Department of Veterans Affairs. Circular 26-24-14 – Temporary Local Variance for Certain Buyer-Broker Charges
Any amount a veteran pays toward broker fees must come from liquid assets that the lender verifies during underwriting. Sellers can still pay the veteran’s buyer-broker charges, and the VA does not count those payments as seller concessions.6Department of Veterans Affairs. Circular 26-24-14 – Temporary Local Variance for Certain Buyer-Broker Charges The VA has indicated it will develop a permanent policy through rulemaking once the market stabilizes. If you’re a veteran, discuss the fee structure with your lender before signing anything.
Dual Agency
Dual agency is when the same agent or brokerage represents both buyer and seller in one transaction. About eight states ban it outright, and most others allow it only with written disclosure from both parties. Even where legal, it puts you at a structural disadvantage. The agent cannot negotiate aggressively for you without hurting the other client. They cannot share the seller’s bottom-line price or advise you on how much to offer. If your buyer-broker agreement is with a large brokerage that also lists a home you want, ask how the firm handles this before making an offer.