WHY AM I BEING ASKED TO SIGN A WRITTEN BUYER AGREEMENT BEFORE SEEING A HOME? 

Effective August 17, 2024, all REALTORS® are required to have a signed buyer agreement in place before conducting any home showings, whether in-person or virtual. Buyers may not tour a property without this signed agreement, except during public open houses. Or if they are touring with the listing agent themselves or a designated agent of the seller’s. 

This agreement confirms that the buyer understands:

• They are entering a private property.

• The showing is being conducted by a licensed REALTOR®.

• The REALTOR® has explained both the expected timeline and how they will be compensated.

  This change was implemented to promote greater transparency, safety, and professionalism in every real estate transaction or showings. REALTORS® are no longer permitted to grant access to any buyer who has not signed a representation agreement. This policy ensures that all parties—buyers, sellers, and agents—are protected and fully informed throughout the home buying process.

  
  What is a “written buyer agreement?” What does it do? A written buyer agreement is an  agreement between you and a 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 an agreement? Written buyer agreements became a nationwide  requirement for all REALTORS as a part of the National Association of  REALTORS® settlement of litigation related to broker commissions. The requirement  went into effect on August 17, 2024. 

  Are these agreements new? In some places, yes. Many states have required them for years, while  some have not. As a result, it is entirely possible you or others you know have not used them in the  recent past. Regardless, they are now a nationwide requirement for many real estate professionals. 

  Are these agreements negotiable? Yes! You should feel empowered to negotiate any aspect of the agreement with your real estate professional, such as the services you want to receive, the  length of the agreement, and the compensation, if any. Compensation between you and your real  estate professional is negotiable and not set by law. In the written agreement, the compensation  must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended or a  range. Only sign an agreement that reflects what you have agreed to with your real estate  professional, as you will be responsible for the agreed-upon compensation at the time of closing (but not before then).

  How do I benefit from these agreements? These agreements clearly lay out what services you (as a homebuyer) expect your real estate professional to provide, and what your real estate  professional will be paid. These agreements make things clear regarding your representation arrangement and reduce any potential confusion  at the outset of your relationship with your real estate professional. 

  When do I need to sign an 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 a written buyer agreement. 

  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. Ask your agent for a breakdown of costs for the properties and loan type you are using and for more information on precisely how this works before making an offer on a property. 

  Can I change or exit an agreement? Yes. You and your real estate professional can mutually  agree to change your agreement. Agreements will 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 your agreement.