What is a brokerage agreement for buying real estate?

How the contract works, when to sign, which terms to check first.

June 16, 2026

Key takeaways

• A buyer‑broker agreement is a contract that outlines your agent’s role, how long you’ll work together and how the agent will be paid.

• Most buyers sign one before touring homes with an agent under rules that took effect in August 2024.

• The terms are negotiable and you may not pay out of pocket, since buyers can often ask the seller to cover the agent’s fee through concessions.

If you plan to work with a buyer’s agent, you’ll likely be asked to sign a buyer broker agreement before touring homes. The contract has become a standard requirement for most agents since August 2024, following industry rule changes tied to broker compensation. Here’s what it covers and what to review before signing.

What is a buyer broker agreement?

A buyer broker agreement is a written contract between a homebuyer and a real estate brokerage that outlines the agent’s duties, the length of the relationship and how the agent will be paid.

The agreement is with the brokerage, not the individual agent. Because agents operate under a supervising broker, you may be able to switch agents within the same firm without signing a new contract.

The document may also be called a buyer agency agreement, buyer representation agreement or written buyer agreement, depending on the state or brokerage.

Once signed, the agent has a fiduciary duty to act in your best financial interest, keep your negotiation strategy confidential, disclose material facts and account for all funds involved in the transaction. Without an agreement, those protections may not apply, and in some states an agent could be required to share your negotiating position with the seller’s side.

Why are buyer broker agreements required now?

Written buyer agreements became a nationwide requirement for most agents after a major legal settlement between the National Association of Realtors and home sellers took effect Aug. 17, 2024.

The lawsuits challenged long-standing industry rules that required sellers to offer compensation to buyer agents through property listings shared among brokers — a system plaintiffs argued limited competition and inflated commissions. After a jury sided with sellers in 2023, the association agreed to change those practices, shifting compensation to direct negotiation between buyers and their agents.

As part of the change, buyer agent commission offers can no longer be displayed on listing platforms. Instead, compensation must be negotiated upfront and clearly spelled out in a written agreement.

Some states already required written agreements before the rule change, while others did not. As a result, buyers in some markets may be encountering this step for the first time.

Even so, you’re not required to commit to an agent right away. You don’t need an agreement to visit open houses on your own or to contact agents about their services. That gives you a chance to compare options before committing.

Related content:

• New rules dictating howresidential agentsare paid take effect this weekend

• How doreal estate agentsget paid?

What types of buyer‑broker agreements are there?

The two main types are exclusive and non‑exclusive. The one you sign determines whether you can work with other agents.

Exclusive agreement: This is the most common form. It gives one brokerage the sole right to represent you. While it’s in effect, you can’t tour homes or make offers through another agent.

Non‑exclusive agreement: This allows you to work with more than one agent, which can be useful if you’re searching in different cities or price ranges. Only the agent who helps you secure a deal is entitled to payment.

Touring agreement: Some brokerages offer a limited‑service option that covers a specific showing or a short window — often about seven days — typically without a fee. It lets you evaluate an agent before committing to a longer agreement.

What should you look for before signing?

Read the agreement carefully before signing. Focus on five key areas: duration, agent duties, compensation, termination rights and the protection clause.

Duration: Most agreements last from 30 days to six months. A shorter term gives you flexibility if the relationship isn’t working. Check the expiration date and whether it can extend automatically.

Agent duties: Make sure the agreement clearly states what your agent will do — such as finding homes, scheduling showings, advising on offers and guiding you through closing.

Compensation: The agreement should spell out exactly how your agent will be paid, whether that’s a flat fee, a percentage or an hourly rate. Fees are negotiable, and the agent can’t collect more than what’s agreed to.

You’re responsible for making sure your agent is paid, but that doesn’t always mean paying out of pocket. In many cases, buyers ask the seller to cover the cost through concessions. If not, the fee may be paid at closing or built into the financing. Talk through your options with your lender before signing.

Loan considerations: Rules can vary by loan type. For example, veterans using VA loans have historically faced limits on what they can pay toward agent fees, while FHA loans cap how much a seller can contribute to closing costs and other concessions. That can affect how your agent is ultimately paid, so it’s worth confirming the details with your lender before signing.

Termination rights: Check how you or the agent can end the agreement early and whether notice is required.

Protection clause: This allows the brokerage to collect a fee if you buy a home the agent showed you within a set time after the agreement ends.

Related content:

• A glossary of essential terms for homebuyers

• What buyers and sellers should know about purchase agreements

Frequently asked questions

What happens if you sign an exclusive agreement but find a home through a different agent?

You may still owe a fee to the brokerage you signed with, even if another agent introduced you to the property. Exclusive agreements typically cover any home you buy during the contract period. If you want to work with another agent, ask about ending the agreement or switching to a non‑exclusive arrangement before moving forward.

What if the seller agrees to pay your agent but that falls through before closing?

You’re generally still responsible for the fee under your agreement. That could mean covering the gap at closing. To reduce that risk, make sure the payment terms are clearly written into your purchase contract and reviewed by your agent and lender.

Can a listing agent at an open house also represent you?

Often yes, but it changes the relationship. The agent would represent both sides, which limits how much they can advocate for you. In many cases, bringing your own agent provides stronger representation during negotiations.

Can your agent represent both you and the seller?

This is called dual agency. It’s allowed in some states and banned in others. When permitted, the agent can’t fully advocate for either side, and confidentiality protections are more limited. You typically must give written consent before entering that arrangement.