Understanding the Buyer Agency Agreement Before Touring Homes for Sale

Before a real estate agent can show you a single home, you must sign a written buyer agency agreement. While the extra paperwork might feel like a pain, it's actually making you a more informed buyer. This document defines exactly what services your agent provides, sets a specific compensation rate or flat fee, and states — in writing — that representation fees are fully negotiable. It is a consumer protection tool, not red tape, and it is mandatory because of a landmark antitrust lawsuit against the National Association of REALTORS® (NAR).

How the NAR Settlement Changed Everything

In 2024, the National Association of REALTORS® (NAR) agreed to settle the Sitzer/Burnett class-action antitrust lawsuit (NAR Settlement FAQs). The plaintiffs — home sellers — argued that the old commission system violated federal antitrust law by forcing sellers to pay a preset buyer's agent fee just to list their home on the Multiple Listing Service (MLS).

The core of the complaint was the Cooperative Compensation Rule. Under the old system, it was common that a home seller would pay a buyer's agent commission — typically 2.5% to 3% of the sale price. Plaintiffs claimed that NAR and various brokerages had been self-serving and intentionally raised commissions. NAR chose to settle the case for $418 million - paid over four years - but maintain that the settlement is not an admission of wrongdoing. NAR's objective with settling was to reduce liability for its 1M+ members, as continued litigation could have caused them more harm than good. The association makes clear that cooperative compensation is a beneficial policy for both sellers and buyers.

These two changes went into effect on August 17, 2024:

1. Banned MLS Compensation Offers. Sellers can no longer advertise buyer's agent commissions through the MLS. That field is gone. Compensation can still be offered but it must be communicated off the MLS: through the seller's own website, printed flyers, yard signs, and direct agent-to-agent communication.

2. Mandatory Written Buyer Agreements. Before an agent can show you a home — in person or via live virtual tour — you must sign a written agreement. This document must state a specific compensation amount (a percentage, a flat fee, or an hourly rate), and make clear that the fee is fully negotiable.

What Kind of Buyer Agreement Can You Sign?

Most buyers will encounter two types of buyer agency agreements. Understanding the difference before you sign is critical.

Non-Exclusive Buyer Agreement

This agreement identifies which specific property, or properties, an agent will help you with. You are free to work with other agents on other properties not specified on the agreement. The Non-Exclusive is the lower-commitment option. It's ideal when you are just meeting your agent and want to get to know them before committing long-term. Many agents offer a single-property or short trial agreement instead of signing months of exclusivity with the first agent you meet.

Exclusive Buyer Agreement

Under an exclusive agreement, you agree to work only with that agent for the term specified — typically 30, 60, or 90 days. In return, the agent dedicates their full effort to your search. This is the standard format most agents prefer because it protects their time and investment. The agreement will include a protection period (often 30–60 days after expiration) during which you still owe compensation if you buy a home the agent showed you.

Both agreements require the same written disclosures: the exact compensation amount, a statement that fees are negotiable, the scope of services, and how either party can terminate the relationship. The choice is yours — and a great agent will explain both options without pressure.

Does the 'Non-Realtor' Loophole Work?

If you like to look for loopholes, you may be wondering, Can I work with a real estate agent who isn't a REALTOR® and skip the buyer agreement? The short answer is no — and understanding why matters to your protection.

Real Estate Agent vs. REALTOR®

A real estate agent is anyone licensed by their state to represent buyers or sellers in property transactions. A REALTOR® is a licensed agent who chooses to join the National Association of REALTORS® and abide by its Code of Ethics. Not all agents are REALTORS®. The difference is membership, not licensing.

Why Every Agent Still Needs Your Signed Agreement

Three overlapping requirements close the so-called loophole:

Local MLS Rules. The NAR settlement required local Multiple Listing Services to mandate written buyer agreements before touring. Any agent using the MLS — member or non-member — must follow those rules to access the listings.

State Real Estate Laws. Many state licensing boards, including New York State, require written representation contracts for all real estate licensees — entirely independent of NAR rules. New York Real Property Law §443 requires agency disclosure at first substantive contact, and post-settlement regulations have reinforced the written agreement requirement for all agents.

Brokerage Policy. Every brokerage sets its own rules. To protect against legal exposure, fair housing and anti-discrimination claims, and compensation disputes, virtually all brokerages require signed written agreements before any buyer relationship begins.

While a non-REALTOR® isn't bound by NAR's internal bylaws, MLS regulations, state law, and brokerage policy make written buyer agreements standard for practically every active agent. Claiming a non-REALTOR® can bypass the rule misunderstands how real estate regulation works.

How to Choose the Right Agreement: At a Glance

What to Watch for When You Sign

Agents are now required to present the compensation rate as a specific, conspicuous amount — no blank lines or vague percentage ranges. The agreement must also state that compensation is always negotiable, never set by law or the MLS. Read the term length, the termination clause, and any protection period carefully. If you don't feel comfortable agreeing to an exclusive 90-day agreement before your first showing, you can ask for a single-property or short-term non-exclusive instead.

When an Agent Shows Without an Agreement

Some agents will still show a property without requiring a signed buyer agency agreement first. That does not mean they found a legal workaround — it means they are ignoring the rule. Real estate law, MLS policy, and brokerage risk management all point in the same direction: an agent who cuts this corner is cutting the wrong corner. If an agent offers to skip the paperwork, the honest question to ask yourself is: Do I want a dishonest agent representing me in the biggest financial decision I will make this year?

What Does a Good Signing Experience Look Like?

When you meet with a professional agent, they should thoroughly walk you through the buyer agreement, explaining what each clause means, why the document exists, and answering your questions before you sign. A good agent treats the agreement as a tool for clarity, not a trap. They will present both non-exclusive and exclusive options.

As a buyer, you have leverage. You can negotiate the term length, the compensation rate, and the scope of the agreement. If an agent refuses to explain a clause or pressures you to sign on the spot, that is a red flag.

Your Bottom Line

Yes, the NAR settlement changed the paperwork. But the bigger shift is in how buyers and agents relate to each other. A signed buyer agreement that spells out compensation, scope, and term before you tour a single home is not a barrier to buying — it is a consumer protection that confirms your agent works for you, on terms you both agreed to.

The agent who asks you to sign is following the law. The agent who offers to skip it? That is the agent who is telling you something about their ethics — before you ever step through the front door.