Buyer agreements after the 2024 NAR settlement

What the agreement must contain

NAR’s settlement FAQ, last updated September 5, 2024, says the buyer agreement must include four components about compensation:

1. A specific and conspicuous disclosure of the amount or rate of compensation the agent will receive, or how the amount will be determined.
2. Compensation that is objective (for example $0, a flat fee, a percentage or an hourly rate) and not open-ended. NAR gives an example of what is not allowed: “buyer broker compensation shall be whatever the amount the seller is offering.”
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed with the buyer.
4. A conspicuous statement that agent fees and commissions are fully negotiable and not set by law.

NAR also tells buyers to make sure the agreement reflects the terms they negotiated and to understand exactly which services they will get, and for how much.

When you need to sign

The agreement is required before touring. NAR defines touring as entering the house with the agent, including when the agent enters to give a live virtual tour to a buyer who is not present. A “home” means a property with one to four residential units. It applies to in-person and live virtual tours.

You do not need an agreement just to speak with an agent at an open house or to ask about services. An agent working only for the seller does not need one with you, though an agent acting as a dual agent does. State law can require a written agreement earlier.

NAR says an agent can sign the agreement at any point, as long as it is before the tour. It also describes a buyer who signs nonexclusive agreements with more than one brokerage, so ask whether the agreement you are offered is exclusive and how long it lasts. Those are your questions to settle in the document; NAR’s rule does not fix them.

Who can pay your agent

NAR’s FAQ lists three options: the listing agent can pay the buyer’s agent, the seller can pay the buyer’s agent, or you can pay your agent directly. Offers of compensation can no longer appear on an MLS, though a seller may still offer them off the MLS, and sellers may still offer buyer concessions on the MLS, such as help with closing costs. Because the agreement caps what your agent can receive from any source, ask how a seller’s payment would be counted against the amount you agreed.

See real estate commission for how fees and negotiation work now.

Financing and VA loans

NAR states that Fannie Mae, Freddie Mac and the FHA do not allow commissions to be added to the balance of the mortgage. Ask your lender how your loan treats a commission you pay yourself.

For VA loans, the general rule in 38 CFR 36.4313(b) is that no brokerage or service charge may be charged against the Veteran unless the regulation allows it, and its paragraph (d)(1)(ix) lets the Under Secretary for Benefits authorize local variances in advance. The Department of Veterans Affairs (VA) used that power in Circular 26-24-14, effective August 10, 2024. It lets Veterans pay reasonable and customary buyer-broker charges, including commissions, where listing brokers may not set buyer-broker pay through MLS postings or where that pay cannot flow through the listing broker. The conditions are:

VA encourages Veterans to negotiate the amount. The circular calls itself a temporary variance, says VA will develop a more permanent policy through rulemaking, and states it is valid until rescinded. Check VA’s circulars page for its current status. See VA loans.

Where states differ

Several states have their own rules on buyer-agent agreements, disclosures and licensing, and a state may require an agreement earlier than NAR does. Your state real estate commission can tell you what applies. Our state guides on license verification show how to check an agent’s license, for example in Texas or California.