Why Am I Being Asked to Sign a Written Buyer Agreement?
Since August 17, 2024, homebuyers across the country are asked to sign a written agreement with their agent before touring homes. Here is what the agreement does, what you can negotiate, and when you need one, with the official consumer guide from the National Association of REALTORS® to read or download.
- Aug 17, 2024 The date written buyer agreements became a nationwide requirement for many real estate professionals.
- Before you tour You sign before touring a home with your agent, in person or virtually.
- Fully negotiable Services, length of the agreement, and compensation are all open for discussion.
- No ranges Compensation must be a defined amount, such as $0, a flat fee, a percent, or an hourly rate.
Watch first, it takes less than 30 seconds
What is a written buyer agreement?
A quick explainer from the National Association of REALTORS®. Press play and watch for these five points.
- 0:03 A formal agreement between you and your agent
- 0:06 It defines the agent's duties and your responsibilities
- 0:09 It says what your agent will be paid
- 0:12 Agreements are negotiable and provide clarity
- 0:18 You sign one before touring a home
+ Read the transcript
What is a written buyer agreement? A formal agreement between you and your real estate agent that defines an agent's duties and your responsibilities, and says what your real estate professional will be paid. These agreements are negotiable and provide clarity to reduce any potential confusion with your real estate professional. You will be asked to enter into a written buyer agreement before touring a home with your real estate professional. National Association of REALTORS®. Learn more at facts.realtor.
The basics of a written buyer agreement
If you are working with an agent who is a REALTOR®, you are working with a professional who is ethically obligated to work in your best interest. The written agreement puts that working relationship on paper.
What it is
An agreement between you and your real estate professional that outlines the services they will provide you and what they will be paid for those services. You sign it after you have chosen the professional you want to work with.
Why you are being asked to sign
Written buyer agreements became a nationwide requirement for many real estate professionals as part of the National Association of REALTORS®' proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.
Whether they are new
In some places, yes. Many states have required them for years, while others have not, so you or people you know may not have used one recently. Either way, they are now a nationwide requirement for many real estate professionals.
How you benefit
The agreement spells out what services you expect from your real estate professional and what they will be paid. That clarity at the start of the relationship reduces confusion later, when you are writing offers and negotiating repairs.
When do I need to sign one?
The agreement comes before the first tour with your agent, whether that tour is in person or virtual. Here is where it fits in the process.
-
1
Choose your agent
Interview agents, ask about their services, and visit open houses on your own. None of this requires an agreement.
-
2
Sign a written agreement
Review the services, term, and compensation together. Negotiate anything that does not fit, then sign what you agreed to.
-
3
Tour homes together
Now your agent can show you homes in person or virtually, and start working on your behalf.
You will sign an agreement before
- ✓ Touring a home with your real estate professional in person
- ✓ Touring a home with your real estate professional virtually
You do not need an agreement to
- – Visit an open house on your own
- – Ask a real estate professional about their services
What you can negotiate, change, and decide
Yes, these agreements are negotiable. You should feel empowered to negotiate any part of the agreement with your real estate professional.
Everything on the table
- Services you receive
- Length of the agreement
- Compensation
Compensation must be clearly defined
Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement it must be a specific figure, not open-ended and not a range.
- $0
- A flat fee
- A percent
- An hourly rate
- Open-ended range
Only sign an agreement that reflects what you have agreed to with your real estate professional.
Paying your agent
Signing does not necessarily mean you pay your agent out of pocket. You are responsible for paying your real estate professional as outlined in your agreement, but you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.
The type of relationship
The agreement does not lock you into one type of relationship. You can enter into any type of business relationship with your real estate professional that is allowed by state law where you live.
Changing or exiting the agreement
You and your real estate professional can mutually agree to change the agreement. Agreements may also have specific conditions under which they can be exited, so read the text closely and talk with your agent if you want to change or exit it.
Free download
The official consumer guide, ready to read or save
The National Association of REALTORS® consumer guide answers the nine questions buyers ask most about written buyer agreements. Read it right here, or download a copy to review before your first tour.
- Consumer GuideWritten buyer agreements
- 1 pagePDF, about 190 KB
- 9 questionsAnswered in plain language
- NAR®Provided by Cinda Rose
Buyer questions about written buyer agreements
What is a written buyer agreement, and what does it do?+
A written buyer agreement is an agreement between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services.
Why am I being asked to sign a written buyer agreement?+
Written buyer agreements became a nationwide requirement for many real estate professionals as part of the National Association of REALTORS®' proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.
Are written buyer agreements new?+
In some places, yes. Many states have required them for years, while some have not. As a result, you or others you know may not have used them in the recent past. Regardless, they are now a nationwide requirement for many real estate professionals.
Are written buyer agreements negotiable?+
Yes. You can negotiate any aspect of the agreement with your real estate professional, including the services you want to receive, the length of the agreement, and the compensation, if any. Compensation is negotiable and not set by law. In the written agreement it must be clearly defined (for example $0, a flat fee, a percent, or an hourly rate), not open-ended or a range. Only sign an agreement that reflects what you have agreed to.
How do I benefit from a written buyer agreement?+
These agreements clearly lay out what services you expect your real estate professional to provide and what your real estate professional will be paid. They make things clear and reduce potential confusion at the outset of your relationship.
When do I need to sign a written buyer agreement?+
You will be asked to enter into a written buyer agreement with your real estate professional before touring a home with them, either in person or virtually. If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign one.
Does this mean I have to pay my real estate professional out of pocket?+
Not necessarily. While you are responsible for paying your real estate professional as outlined by your agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.
Does the agreement dictate the type of relationship I have with my agent?+
No. You are allowed to enter into any type of business relationship with your real estate professional that is allowed by state law where you live.
Can I change or exit a written buyer agreement?+
Yes. You and your real estate professional can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the agreement and speak with your real estate professional if you would like to change or exit it.
Questions before you sign? Let's go through it together.
Cinda Rose walks every buyer through the agreement line by line before the first tour, so you know exactly what you are signing and why.
Tell her what you are looking for in the West Valley, how you would like to work together, and any terms you want to talk through. You will get straight answers, a written agreement that reflects what you agreed to, and a tour plan built around the homes that fit.
Practices may vary based on state and local law. Consult your real estate professional and/or an attorney for details about state law where you are purchasing a home. Visit facts.realtor for more information and resources. Consumer guide and video provided by the National Association of REALTORS®. REALTORS® are members of the National Association of REALTORS®.