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Buyer's Guide · Contracts

The buyer-representation agreement, explained

What you're signing before you tour: who represents you, how they're paid, exclusive vs. non-exclusive, what's negotiable, and where your rebate is written in so it's guaranteed.

DRE #02232009 · Licensed CA brokerageRequired pre-tourNegotiable termsRebate in writing
Quick answer

A buyer-representation agreement is a written contract naming the agent who represents you and spelling out how they're paid. Since the 2024 NAR settlement, buyers sign one before touring. Key terms — length, geographic area, exclusivity, and compensation — are negotiable. With Portfolio Home Realty, the agreement also states your rebate (up to 1% of the price back at closing) in writing, which is what makes it enforceable.

What a buyer-representation agreement is

A buyer-representation agreement is a short written contract that says a specific agent represents you as the buyer, and spells out how they're paid. Since the 2024 NAR settlement, you'll sign one before an agent shows you homes.

Think of it as putting the relationship on paper. It defines who works for you, for how long, in what area, and what compensation looks like — including, with us, your rebate. It's not a scary lock-in; the terms are negotiable, and a good agent will walk you through every line. See how it connects to the bigger picture in the NAR settlement explainer.

Why it exists now

Before the settlement, buyer-agent compensation was posted on the MLS and buyer agreements were inconsistent. Now, buyers sign a written agreement up front so everyone knows the terms before touring. It actually protects you — no surprises about who your agent works for or how they're paid. And it's where your rebate gets documented, so it's guaranteed to be honored at closing.

What's in the agreement

TermWhat it meansNegotiable?
Agent & brokerageWho represents youFixed
Term lengthHow long it lasts (e.g., 30–90 days)Yes
Geographic areaWhere it appliesYes
CompensationHow the agent is paidYes
Exclusive vs. non-exclusiveWhether you can use other agentsYes
Your rebateThe cash back you'll receiveStated in writing

Exclusive vs. non-exclusive

An exclusive agreement means you work with one agent for the term — the most common setup, and it lets your agent invest fully in your search. A non-exclusive agreement lets you work with more than one. Exclusive usually serves buyers better because your agent is committed, but the choice is yours, and the term length keeps it fair.

Reasonable is the standard. Ask for a term that matches your timeline, an area that fits your search, and an easy way out if it's not working. A confident agent won't push an unreasonable lock-in.

Questions to ask before you sign

  • How long is the term, and can I cancel if we're not a fit?
  • Is this exclusive or non-exclusive?
  • How are you compensated, and is it seller-paid where possible?
  • Exactly how much is my rebate, and how is it applied?
  • What happens if a seller doesn't offer buyer-agent compensation?

Where your rebate lives

This is the key point for you: your rebate belongs in this agreement, in writing. With Portfolio Home Realty, the agreement states that you'll receive up to 1% of the purchase price back at closing. That written commitment is what makes the rebate enforceable — never accept a verbal promise. Read how the rebate works and confirm it's on paper.

Mistakes to avoid

  • Signing a long exclusive term blindly. Match the term to your timeline.
  • Not getting the rebate in writing. Verbal promises aren't enforceable.
  • Ignoring the compensation section. Know exactly how your agent is paid.
  • Assuming it can't be negotiated. Term, area, and scope are all on the table.

Expert tips

  • Read the compensation and rebate clauses first — they matter most to your wallet.
  • Negotiate a fair term and a clean exit before signing.
  • Keep a signed copy for your records and closing.

Frequently asked questions

Do I have to sign a buyer-representation agreement?
Yes, if you want an agent to show you homes. Since the 2024 NAR settlement, buyers sign a written agreement before touring. The terms — length, area, and compensation — are negotiable.
Does the agreement lock me into one agent forever?
No. It runs for a set term you agree to, often 30–90 days, and can include a cancellation path. You negotiate the length, area, and whether it's exclusive.
What's the difference between exclusive and non-exclusive?
Exclusive means you work with one agent for the term; non-exclusive lets you use more than one. Exclusive usually gets you a more committed agent, but the choice and term are yours.
Where is my rebate stated?
In the buyer-representation agreement, in writing. With Portfolio Home Realty it states you'll receive up to 1% of the purchase price back at closing, which makes it enforceable.
Can I negotiate the agreement?
Yes. Term length, geographic area, exclusivity, and compensation are all negotiable. A good agent will explain and adjust reasonable terms.
What if the seller doesn't offer to pay my agent?
Your agreement covers that scenario. Your agent can negotiate compensation as a term of your offer so your representation and rebate stay intact.

Want it explained line by line?

We'll walk you through the agreement, keep the terms fair, and put your rebate in writing before you tour.

Disclaimer: Portfolio Home Realty is a licensed California real estate brokerage (DRE #02232009) serving Los Angeles County and Orange County. The buyer rebate is a portion of the buyer-side commission returned to eligible buyers at closing and is generally up to 1% of the purchase price, subject to lender approval and the seller offering buyer-agent compensation. Dollar figures on this page are illustrative estimates, not guarantees. This page is general information, not legal, tax, or lending advice — consult your CPA, attorney, or lender about your situation. Equal Housing Opportunity.