📌 Key Takeaways
- Since August 2024, California buyers must sign a written buyer-agency agreement before touring homes with an agent.
- Everything in it is negotiable — the fee, the length of the term, and which areas or properties it covers.
- A short term and a clear compensation clause protect you; never sign a long exclusive deal before you trust the agent.
Thanks to the NAR settlement, you'll be asked to sign a buyer-agency agreement before you tour your first home. Don't sign blindly — here's what's in it and what you can negotiate.
Why this exists now
The 2024 NAR settlement requires buyers to sign a written agreement with their agent before touring homes. The goal is transparency: you should know, up front and in writing, what your agent will be paid and who is responsible for it. This is a good thing for buyers — it ends the era of fuzzy, undisclosed commissions. (For the bigger picture, see who pays the buyer's agent in 2026.)
What's in the agreement
Compensation
How much your agent earns, how it's calculated, and who pays it. Crucially, any amount the seller offers to pay typically offsets what you'd owe — and often covers it entirely.
Term length
How long the agreement lasts. You can start small — a single showing, a single property, or a short 30-day term — rather than locking into months.
Scope
Which geographic areas or specific properties the agreement covers. A narrow scope keeps your options open.
Services
What the agent will actually do for you — showings, negotiation, contract management, and guidance through escrow.
What's negotiable (the answer is: everything)
The fee, the term length, exclusivity, and your ability to cancel are all negotiable. A reasonable agent will happily start with a short, non-exclusive term to earn your trust. If someone pressures you into a long exclusive agreement before you've even worked together, that's a red flag.
Questions to ask before you sign
Ask: What's your fee, and will the seller's offer cover it? Can we start with a short term or a single property? Can I cancel if it isn't working? Do you offer a buyer rebate? At Portfolio Home Realty, that last answer is yes — we return 1% of the purchase price at closing. Review our buyer representation agreement and rebate disclosure any time.
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Get my free rebate estimate →Frequently Asked Questions
Yes — it's fully negotiable. The fee, the length of the agreement, and what it covers are all on the table. Never assume the first number is fixed.
Any amount the seller offers to pay typically offsets what you owe your agent, and often covers it completely. Your net out-of-pocket can be zero — your agent negotiates this into the deal.
Yes, and it's smart to do so early. You can sign for a single property or a short term while you decide whether the agent is the right fit, rather than committing to a long exclusive agreement up front.
Mike Basti founded Portfolio Home Realty to give Southern California buyers full-service representation and real cash back at closing. Licensed California broker serving LA County and Orange County. Call (949) 379-5320.
The bottom line
The buyer-agency agreement is now a required first step — but it's also an opportunity to set clear, fair terms. Keep the term short, get the compensation in writing, and work with an agent who gives money back. Portfolio Home Realty returns 1% at closing — call (949) 379-5320 or get a free estimate.