# Do CA Sellers Have to Pay the Buyer's Agent Commission? By Keegan Cin (@keegancin) ยท Published 2026-10-01 Canonical: https://voce.com/@keegancin/sellers-pay-buyer-agent-commission-mmm6ev --- ## **Do California home sellers have to pay the buyer's agent commission after the NAR settlement?** No. California sellers are not required to pay the buyer's agent commission after the 2024 NAR settlement. Offering compensation to a buyer's agent is entirely optional and fully negotiable. Many sellers in Los Angeles and Orange County still choose to offer it as a competitive strategy, but there is no law, MLS rule, or settlement term that forces you to do so. ## **Key Takeaways** - Since the [**2024 NAR settlement**](https://www.nar.realtor/the-facts/nar-settlement-faqs) took effect, sellers are no longer required to offer buyer-agent compensation as a condition of listing on the MLS. - Offers of buyer-agent compensation can no longer be published on MLS listings, they must be communicated off-MLS, through the listing agent or in the purchase contract itself. - California now requires buyers to sign a written buyer-broker agreement before a licensed agent can show them homes, which means buyers must address agent compensation with their own agent upfront. - Sellers in competitive LA and OC markets often still offer buyer-agent compensation strategically, because it can influence how many buyers and agents engage with a listing. - If a seller does not offer compensation, the buyer is responsible for paying their own agent, though how that gets structured in the contract is negotiable between all parties. ## **What actually changed for California sellers after the NAR settlement?** The short answer: a lot changed procedurally, but your core leverage as a seller stayed intact. Before August 2024, the dominant practice across most U.S. markets, including Los Angeles and Orange County, was for the seller to offer a buyer-agent commission through the MLS as part of listing a home. That offer was visible to every buyer's agent before they ever showed the property. The [**NAR settlement**](https://www.nar.realtor/the-facts/nar-settlement-faqs) ended that practice nationally. Here is what the settlement actually required: - **MLS offers of compensation are gone.** The California Regional Multiple Listing Service (CRMLS) and other California MLSs removed the field where sellers could advertise buyer-agent compensation. You can still offer it, you just can't broadcast it on the MLS. - **Written buyer-broker agreements are now mandatory.** Under California Association of Realtors guidance and updated MLS rules, buyers must sign a written agreement with their agent before that agent can show them homes. This agreement spells out what the buyer's agent will be paid and by whom. - **Compensation is negotiated in the contract.** If a seller wants to offer buyer-agent compensation, it now happens through the purchase agreement, typically as a seller concession or a direct offer of compensation stated in the contract terms. None of this means you have to pay the buyer's agent. It means the conversation about who pays has moved from a pre-listing default to an explicit negotiation, which is actually a more honest place for it to be. As someone who has worked with sellers across Newport Beach, Huntington Beach, Costa Mesa, Long Beach, and Corona Del Mar through this transition, I can tell you the mechanics feel different but the underlying strategy question is the same: what offer structure gets you the best net outcome? ## **Should California sellers offer buyer-agent compensation, and how do LA and OC sellers handle it now?** Most sellers I work with in Los Angeles and Orange County are still choosing to offer some form of buyer-agent compensation, but they are doing it deliberately, not automatically. Here is why that matters. Even though the MLS can no longer display compensation offers, buyer's agents know which listings are structured competitively. When a buyer's agent has two comparable homes to show and one is offering compensation that offsets what the buyer owes their agent, that agent has a practical reason to prioritize the showing. That dynamic has not disappeared, it has just moved off the MLS and into the negotiation. ### **How compensation is typically structured now** There are a few common approaches I see sellers using in this market: - **Seller concession toward buyer costs.** The seller offers a closing cost concession in the purchase contract, and the buyer uses part of that concession to pay their agent. This keeps the offer flexible and avoids directly naming a commission figure. - **Direct offer of compensation in the contract.** The seller explicitly agrees in the purchase agreement to pay the buyer's agent a stated amount. This is clean and transparent, though it requires knowing what the buyer's agent agreement specifies. - **No offer from the seller.** The buyer pays their agent directly, either out of pocket or by rolling it into their financing where their loan program permits. The CFPB has noted that how buyer-agent fees interact with loan programs varies, so buyers need to confirm this with their lender. There is no single right answer. A seller with a highly desirable property in a low-inventory segment has more leverage to offer nothing. A seller in a more competitive or slower-moving price band may find that offering compensation brings more qualified buyers to the table. This is exactly the kind of decision I walk my clients through before we settle on a listing strategy, and it depends entirely on your specific property, price point, and timing. For sellers thinking through the full picture before listing, decisions about pre-sale improvements and offer structure go hand in hand. My breakdown of [**pre-sale home improvements in Orange County and Los Angeles**](https://cincoastrealty.com/pre-sale-home-improvements-orange-county-los-angeles) covers the other side of that equation. ### **What about buyers who are financing their agent's fee?** Some buyers, particularly those using FHA, VA, or conventional loans, are asking whether they can finance their buyer-agent fee. This is a nuanced area. Certain loan programs allow buyer-agent compensation to be treated as a seller concession within allowable limits. Others do not. The buyer's lender is the right person to answer this question for a specific transaction. What I tell sellers is: if your buyer needs to finance their agent's fee and your loan program allows it through a seller concession, structuring your offer that way can actually expand your buyer pool. This also comes up in more complex transactions. If you are dealing with [**contingent sales in Orange County**](https://cincoastrealty.com/contingent-sales-in-orange-county-a-complete-guide), for example, the interplay between concessions, financing, and compensation can add layers, which is another reason having an experienced agent in your corner matters. **COMPENSATION APPROACH** **HOW IT WORKS** **BEST FIT** Seller concession (buyer uses toward agent fee) Seller offers a closing cost credit; buyer allocates part to their agent per their buyer-broker agreement Sellers who want flexibility without naming a commission figure Direct compensation offer in purchase contract Seller explicitly agrees to pay buyer's agent a stated amount in the contract Sellers in competitive markets who want to signal a strong offer to buyer's agents No seller offer, buyer pays agent directly Buyer covers their agent's fee out of pocket or through financing where permitted Sellers with high-demand properties or buyers who have negotiated a flat-fee arrangement with their agent Broker fees and commissions are fully negotiable and not set by law. There is no standard, typical, or customary rate, what a seller offers (if anything) and what a buyer's agent is paid are separate negotiations, each governed by the contracts those parties sign. The listing fee is agreed in your listing agreement with your agent, and any compensation you choose to offer a buyer's agent is optional and separately negotiable. If you want to know what makes sense for your specific situation, that conversation happens with me directly, not on a blog. The California Department of Real Estate regulates how broker compensation must be disclosed, and the California Association of Realtors has published updated guidance for agents and sellers navigating these changes. If you want to read more about how buyer representation has shifted nationally, the [**NAR Profile of Home Buyers and Sellers**](https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers) tracks how buyers engage agents and what they expect from the process. The bottom line is that you have more control over this decision than you did two years ago. That is a good thing, but it also means the strategy behind it matters more. Every situation is different, and the only way to know what the right move is for your listing is to run through it with someone who knows this market and has seen how buyers and their agents are responding right now. If you want to see what clients have said about working with me, you can read my reviews on [**Google**](https://www.google.com/maps/place/Keegan+Cin+Realtor+-+Cin+Coast+Realty/@33.6073424,-117.874661,965m/data=!3m1!1e3!4m8!3m7!1s0x48b97523be026a43:0xe547127d10d812ae!8m2!3d33.6073424!4d-117.874661!9m1!1b1!16s%2Fg%2F11nx9qqwqj?hl=en-us&entry=ttu&g_ep=EgoyMDI2MDgxNi4wIKXMDSoASAFQAw%3D%3D)and [**Zillow**](https://www.zillow.com/profile/keegancin). ## **Frequently Asked Questions** ### **Do California home sellers have to pay the buyer's agent at all?** No. California sellers have no legal or MLS-based obligation to pay the buyer's agent after the 2024 NAR settlement. Offering buyer-agent compensation is entirely optional, it is a strategic decision, not a requirement. Whether you offer it, and how, should be based on your property, your market, and your goals. ### **Can a seller in California still offer to pay the buyer's agent commission?** Yes, absolutely. Sellers can still offer to compensate the buyer's agent, they just cannot advertise it on the MLS. The offer is made off-MLS, through your listing agent or directly in the purchase contract. Many sellers in Los Angeles and Orange County continue to do this as a competitive strategy to attract more buyer interest. ### **Can buyer-agent compensation be listed on the MLS in California?** No. As a result of the NAR settlement, California MLSs, including CRMLS, removed the field for advertising buyer-agent compensation on listings. Offers of compensation must now be communicated outside the MLS, such as in the purchase contract, through direct agent-to-agent communication, or via the listing agent's marketing materials. ### **Does California require a written buyer-broker agreement before showing homes?** Yes. Under updated rules aligned with the NAR settlement, California buyers must sign a written buyer-broker agreement with their agent before that agent shows them homes. This agreement outlines what the buyer's agent will be paid and by whom, which means buyers and their agents must address compensation upfront, before they ever walk through your door. ### **If the seller does not offer buyer-agent compensation, who pays it?** The buyer becomes responsible for paying their own agent per the terms of their buyer-broker agreement. How the buyer funds that payment, out of pocket, through a seller concession negotiated in the offer, or in some cases through their loan, depends on their financial situation and loan program. Buyers should confirm with their lender what is permitted under their specific financing. ### **How are buyer-agent fees usually handled in Los Angeles and Orange County now?** In practice, many sellers in LA and OC are still offering buyer-agent compensation, but it is now written into the purchase contract rather than posted on the MLS. Seller concessions that the buyer can use toward their agent's fee are a common structure. The approach varies by price point, property demand, and how the offer is negotiated, there is no single standard across the market. * * * Navigating buyer-agent compensation in 2026 is genuinely more nuanced than it was a few years ago, and getting the strategy right can affect both your net proceeds and how quickly your home sells. I help sellers across Newport Beach, Costa Mesa, Huntington Beach, Corona Del Mar, Long Beach, Seal Beach, and the broader LA and OC market think through exactly this kind of decision before we ever go live on the market. Ready to talk through what makes sense for your listing? Schedule a free 30-minute strategy call, call me at 310-963-5595, or email [Keegan@CinCoastRealty.com](mailto:Keegan@CinCoastRealty.com). You can also get a quick read on where your home stands with my home valuation tool. **About Keegan Cin** Keegan Cin is a top-producing Southern California real estate professional with more than 13 years of experience serving buyers, sellers, investors, and luxury clientele throughout Los Angeles County and Orange County. As the founder of Cin Coast Realty, he combines deep local market expertise with a data-driven approach to help clients make confident real estate decisions across first-time purchases, move-up sales, luxury transactions, investment properties, probate, and complex multi-party deals. His background in marketing and analytics allows him to position listings for maximum exposure while helping buyers identify opportunities others miss. California DRE #01971604. Cin Coast Realty powered by Coldwell Banker Realty Equal Housing Opportunity. Keegan Cin, California DRE #01971604, Cin Coast Realty powered by Coldwell Banker Realty. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific costs, compensation terms, and contract details with your closing agent, tax advisor, or lender.