Buyer-Broker Agreement in Real Estate: What Agents and TCs Need to Know Before a Showing
A buyer-broker agreement, more specifically a buyer representation agreement, is a written contract between a buyer and a brokerage that explains the services that the brokerage will provide and how the brokerage will be paid. Beginning in August 2024, as part of the NAR settlement, changes to the MLS policies went into effect. As a result, all agent members were required to obtain a signed buyer-broker agreement in order to provide any tour or showings of a listed property, whether in-person or virtual.
For transaction coordinators, that means the agreement’s signed date, compensation terms, and expiration are now first-class compliance items that belong in every file checklist.
What Is a Buyer-Broker Agreement?
A buyer-broker agreement is an agreement written between a prospective buyer and a real estate brokerage firm that represents their interests in the search and acquisition of a home. It clarifies three aspects of the old handshake model that was left open: What the agent will do for the buyer, how long the relationship will continue, and exactly how will the agent be compensated?
This document is referred to as a buyer representation agreement, buyer agency agreement, or, in NAR’s consumer documents, a “written buyer agreement. States and associations have their own set of standard forms, but the content is very similar: services, compensation, duration, and conditions of termination of the relationship.
Why Does a Buyer-Broker Agreement matters more after the NAR settlement
The 2024 NAR settlement changed buyer agreements from “good practice” to “gatekeeper.” Under the practice changes that took effect on August 17, 2024, an agent working with a buyer in connection with an MLS-listed property must have a written agreement with that buyer before touring a home, including live virtual showings, not just opening a front door.
The settlement also helped to change compensation. Buyer-agent compensation offers can no longer be placed on the MLS, and the agreement will be signed where the buyer and agent agree to how the agent will be compensated the buyer, by way of a concession to be determined in the offer by the seller, or a combination of the two. Compensation must be defined in a written contract as a fixed amount or a fixed rate, and must not be an unspecified amount.
The practical effect: the buyer-broker agreement, it’s not a paper that’s caught up with the purchaser later. It is the document that grants access to the first showing, and if it does not exist, is unsigned or out of date, then everything that follows is on shaky ground.
6 Key Components of a Buyer-Broker Agreement
Exact requirements vary by state and form, but a compliant, useful buyer-broker agreement covers all six of the following.
| Component | What to verify before a showing |
|---|---|
|
Parties & signatures |
All buyers named and signed; agent and brokerage identified; signatures dated before the first tour. |
|
Compensation |
Stated as a specific amount, flat fee, or rate never open-ended or ‘whatever the seller offers. |
|
Duration & expiration |
A clear start and end date. An expired agreement does not authorize today’s showing. |
|
Scope of services |
What the agent will do: search, showings, offer prep, negotiation. Some agreements limit property type or geography. |
|
Exclusivity |
Whether the buyer may work with other brokerages during the term (see section 4). |
|
Termination terms |
How either party can end the agreement, notice required, and any protection-period clause for homes already shown. |
Exclusive vs. Non-Exclusive Agreements
Exclusive buyer-broker agreements commit the buyer to work only with that brokerage for the term. The agent earns the agreed compensation on any qualifying purchase during the term, which is why agents prefer them and why the compensation clause deserves careful reading.
Non-exclusive agreements let the buyer work with multiple brokerages; typically only the agent who actually procures the purchased home is owed compensation. Some agents use short, non-exclusive agreements, even single-property or single-day agreements, to get a signed document in place before a first showing with a new client.
For TCs, the type matters at intake: an exclusive agreement with a protection period can follow a buyer even after the relationship ends, which occasionally surfaces as a compensation dispute late in a transaction. Flag it early.
Pre-Showing Checklist for Real Estate Agents
Run this sequence before you schedule the first tour with any new buyer. It takes minutes and prevents the two most common failure modes: touring without a signed agreement, and touring on an expired one.
- Present the agreement at the first substantive meeting, not at the front door. Buyers sign faster when compensation is explained as a conversation, not a surprise.
- All touring buyers, including spouses and other co-buyers, must be named and sign the agreement.
- The effective and expiration dates of the agreement should be verified. If the agreement is being presented again, after a period of time during which the buyer had the opportunity to review the agreement, it may have expired.
- Verify the compensation clause is specific and current, and that everyone understands seller-paid concessions are negotiated in the offer, not guaranteed.
- File the executed agreement where your TC can see it the moment the file opens, before the first offer, not after.
The Transaction Coordinator's Role in Managing Buyer-Broker Agreements
Buyer-broker agreements sit upstream of the contract, so they are easy for a TC to overlook, until an audit, a commission dispute, or a broker file review asks for one. Build the agreement into your intake process:
- Audit at file open. Confirm the agreement exists, is fully signed, covers the buyer on the contract, and was dated before the first showing.
- Check compensation consistency. The compensation in the agreement must be compatible with what the purchase contract negotiates (seller concessions, buyer-paid amounts). Mismatches need the agent’s attention immediately.
- Track the expiration. If the agreement expires mid-escrow, the brokerage’s right to compensation can be challenged. Add the expiration date to your deadline tracker alongside contingencies and closing.
- Store it in the file. Brokers are required to retain it; auditors and state regulators increasingly ask. It should live with the transaction documents, not in the agent’s email.
5 Common Buyer-Broker Agreement Mistakes to Avoid
- Touring first, signing later. A signature dated after the showing does not cure the miss.
- Open-ended compensation language. “Whatever the seller offers” is not a specific amount or rate and fails the settlement requirements.
- Letting the agreement expire mid-search. Long searches outlive short agreements; renew before the date passes.
- Assuming open houses are exempt. Hosting an open house is different, but if you begin working with an unrepresented buyer you meet there, the agreement requirement applies before you tour them through other homes.
- Keeping it out of the transaction file. If your TC and broker can’t see it, it can’t protect you.
Track Every Document and Deadline in One Place
Trackxi helps agents and transaction coordinators stay on top of buyer agreements with visibility into missing, expiring, and expired agreements, along with signed documents, contingency dates, and closing tasks. Keep important follow-ups organized and reduce the chance of critical transaction items being overlooked.
Frequently Asked Questions About Buyer-Broker Agreement
MLS rule states that a buyer agent must have a signed buyer agent agreement to take a buyer to show a property, and this includes virtual showings. There may be additional state or MLS requirements.
Yes, every agreement includes termination terms. Typically either party can end it with written notice, though exclusive agreements often include a protection period during which compensation is still owed on homes the agent already showed.
The agreement states the compensation, but the source is negotiated in the offer: the buyer can pay directly, ask the seller for a concession, or split it. Compensation can no longer be advertised on the MLS, so this is now part of the offer strategy.
Lengths of agreement can be varying and often depend on the real estate agent or the type of sale. Some agreements are property specific and some cover multiple showings. Agreements can range from 30, 60 or 90 days. They list the dates of the agreement, when it begins and ends. The agreements include situations in which the agreement may be cancelled.
Stop and tell the agent and broker immediately. Do not paper over it, the fix is a properly dated new or renewed agreement executed before further showings, plus broker guidance on the transactions already underway.stom legal language, decide entitlement, or advise a party whether to sign.
