Buyer Disclosure

The Buyer Representation Agreement, Explained

Q: How long does the agreement last?

It is negotiable. An agreement can cover a single property, a short window, or a set period, as agreed in writing between you and your agent.

Q: Can I cancel the agreement?

Yes, according to the cancellation terms written into the agreement.

Since 2024, California buyers sign a written representation agreement before touring homes. Here's a plain-English summary of what it covers and how it works with your 1% cash back — so there are no surprises.

This is a plain-language overview, not the agreement itself. The document you actually sign — typically the California Association of REALTORS® Buyer Representation and Broker Compensation Agreement — is the binding contract, and its exact wording controls. This page is for general information and is not legal advice.

What it is — and why you sign one

Following the 2024 NAR settlement (effective August 17, 2024) and California's AB 2992 (effective January 1, 2025), a buyer must sign a written representation agreement with their agent before touring homes. The agreement simply puts the relationship in writing: what your agent will do for you, how long the arrangement lasts, and how your agent gets paid. It protects you as much as the brokerage by making everything explicit up front.

What the agreement covers

Scope of service

What your agent does for you — searching, touring, advising, negotiating, and guiding you through escrow to closing.

Term & duration

How long it lasts. This is negotiable — it can cover a single property, a short window, or a set period. You're not locked into anything you didn't agree to.

Compensation

How your agent is paid, the amount or rate, and who pays it — usually the seller side. It also explains what happens if the seller offers less than the agreed amount.

Cancellation

How either side can end the agreement, and any notice required. Clear exit terms are part of the deal.

How compensation actually works

We request payment from the seller side. In most California transactions the seller offers to cover the buyer-agent compensation, and that's what funds your rebate.
If the seller offers less. The agreement states the maximum compensation and explains how any shortfall is handled. We review the specific numbers with you before you tour or write an offer — never after.
Your 1% cash back. Our rebate of 1% of the purchase price is documented alongside the agreement, so the credit you'll receive at closing is clear from the start. See the Rebate & Commission Disclosure for the full math and terms.
No upfront fee. Signing the agreement does not cost you anything out of pocket; compensation comes out of the transaction, subject to lender disclosure and approval.

Your protections with Portfolio Home Realty

Everything in writing, first. Terms, compensation, and your rebate are documented before you tour or offer.
Flexible terms. Short or single-property agreements are available — we don't ask you to over-commit.
Negotiable. Commissions are not set by law. Every term in the agreement is open to discussion.
No hidden costs. If anything would ever reduce your rebate, we tell you the exact figure in advance.

Rebate & Commission DisclosureThe full breakdown of how your 1% cash back is calculated and the terms that apply.

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This summary is informational only and is not the binding contract or legal advice. The signed buyer representation agreement controls in all cases, and you may wish to have it reviewed by an attorney. Portfolio Home Realty, California DRE #02232009.

Frequently asked questions

Do I have to sign a buyer representation agreement?

Yes. Since August 17, 2024, California buyers sign a written representation agreement with their agent before touring homes. It's a standard, required step now.

How long does the agreement last?

It's negotiable. An agreement can cover a single property, a short window, or a set period — whatever you and your agent agree to in writing.

Who pays my agent?

In most California transactions the seller side offers to cover the buyer-agent compensation. The agreement states the agreed amount and explains how any shortfall is handled if the seller offers less.

Does signing cost me anything upfront?

No. There is no upfront fee to sign. Compensation comes out of the transaction and is disclosed to and approved by your lender, and your 1% cash back is credited at closing.

Can I cancel the agreement?

Yes, according to the cancellation terms written into it. Clear exit terms are part of the agreement, and we keep them straightforward.

Have questions before you sign?

We'll walk you through the agreement line by line — no pressure, no obligation.

Talk to us → (949) 379-5320

Last updated: June 2026