Do I Need a Buyer Agent Agreement in California? (2026 NAR)
Yes, you need a written buyer-broker agreement before touring homes. AB 2992 made it law in California starting January 1, 2026. Here is everything the agreement covers, what to watch for, and how to pick the right agent.
Justin also founded The Answer Engine, helping local businesses show up in AI search platforms like ChatGPT and Google AI Overview.
What You Will Learn
- Do I Need a Buyer Agent Agreement in California?
- What Changed: The NAR Settlement and AB 2992
- What the Written Agreement Must Include
- Compensation Models: Percentage, Flat Fee, Hourly
- Who Pays the Buyer Agent? Sellers Still Can
- Old System vs New System: Side-by-Side
- What to Look for Before Signing
- Termination Clauses: How to Get Out
- Dual Agency Disclosure: What You Need to Know
- How to Interview Agents Before Signing
- Why an Experienced Agent Matters More Now
- Frequently Asked Questions
Do I Need a Buyer Agent Agreement in California?
Yes. Every buyer working with a licensed real estate agent in California must sign a written buyer-broker agreement before the agent can show you any property. This is not optional. It is California state law as of January 1, 2026.
If you walk into an open house and want a specific agent to represent you, they must present you with a written agreement before acting on your behalf. If you call an agent to schedule a showing, the agreement comes before the showing happens.
The written agreement is not just a formality. It guarantees that your agent's duties, compensation, and the scope of their services are defined before they start working for you. No more ambiguity about who your agent works for or how they get paid.
The confusion around buyer agent agreements stems from the 2024 NAR (National Association of Realtors) settlement, which changed how buyer agents are compensated nationwide. California then passed AB 2992 to codify those changes into state law. The result is a clearer, more transparent process for every buyer.
Here is the key takeaway: the agreement is a good thing. It forces transparency. And if you work with the right agent, you will be glad it exists.
Who Does This Apply To?
Every buyer working with a licensed real estate agent in California. It does not matter whether you are a first-time buyer, a move-up buyer, an investor, or purchasing a second home. If you want an agent to represent you, the written agreement comes first.
The only exception is attending an open house on your own without agent representation. You can walk through an open house freely. But the moment you want an agent to write an offer, negotiate on your behalf, or represent your interests in any capacity, the agreement must be signed.
What If I Just Want to See One Property?
Some agents offer a single-property showing agreement for buyers who want to see one specific home before committing to a broader relationship. This is a short-form agreement that covers one property only. It can be a good option if you are early in the process and want to test the working relationship before signing a longer-term agreement.
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What Changed: The NAR Settlement and AB 2992
To understand why buyer agent agreements are now required, you need to understand what happened in 2024 and how California responded.
The NAR Settlement (August 2024)
The National Association of Realtors settled a class-action lawsuit (Sitzer/Burnett) for $418 million. The core change: listing agents can no longer offer buyer agent compensation through the MLS. Before this settlement, sellers almost always paid both agents. The buyer agent fee was baked into the listing agreement and displayed on the MLS for every agent to see.
That system is gone. Buyer agent compensation must now be negotiated separately, outside the MLS, and disclosed in writing before any home tours begin.
California AB 2992 (Effective January 1, 2026)
While the NAR settlement set national guidelines, California went further by passing Assembly Bill 2992, signed by the Governor and effective January 1, 2026. This law codifies the settlement requirements into California statutes and adds state-specific provisions that protect buyers beyond the national baseline.
California AB 2992 specifically requires:
- A written buyer-broker agreement before an agent can show you any property
- Clear disclosure of agent compensation in the agreement, including the amount or rate
- A statement that compensation is negotiable and not set by law
- Disclosure of services the agent will provide throughout the transaction
- Duration and termination terms so the buyer knows how long the agreement lasts
You now have more control over your agent relationship than ever before. You know exactly what you are paying, what services you are getting, and how to end the relationship if it is not working. The days of vague, undefined agent obligations are over.
What the Written Buyer-Broker Agreement Must Include
Under AB 2992, your buyer agent agreement must contain specific elements. Here is what to expect when an agent presents you with the document:
| Required Element | What It Covers | Why It Matters |
|---|---|---|
| Agent Compensation | Exact amount, percentage, or rate the agent will earn | No surprises at closing about what you owe |
| Compensation Source | Whether buyer pays, seller pays, or a combination | Clarifies who is responsible for the fee |
| Negotiability Statement | Explicit statement that compensation is negotiable | You have the right to negotiate the fee |
| Services Provided | List of what the agent will do for you | Holds the agent accountable to deliver |
| Duration | Start date, end date, or term length | You know exactly how long you are committed |
| Termination Terms | How either party can end the agreement | Your exit strategy if things are not working |
| Property Type and Area | Geographic area and types of homes covered | Defines the scope of the agent's work |
| Dual Agency Disclosure | Whether the agent may represent both sides | Protects you from undisclosed conflicts |
Do not sign the agreement without reading the entire document. A good agent will walk you through each section, explain what it means in plain language, and answer every question before asking for your signature. If an agent rushes you through this step, consider that a red flag.
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✉ Text "Agreement Help"Compensation Models: Percentage, Flat Fee, Hourly
One of the biggest changes from the NAR settlement is that buyer agent compensation is no longer a fixed number. You and your agent negotiate the fee structure. Here are the three most common models in California:
1. Percentage of Purchase Price (Most Common)
The agent earns a percentage of the home's final sale price, typically 2% to 3%. This has been the standard model for decades and remains the most widely used.
| Home Price | At 2% | At 2.5% | At 3% |
|---|---|---|---|
| $500,000 | $10,000 | $12,500 | $15,000 |
| $700,000 | $14,000 | $17,500 | $21,000 |
| $900,000 | $18,000 | $22,500 | $27,000 |
| $1,200,000 | $24,000 | $30,000 | $36,000 |
2. Flat Fee
The agent charges a fixed amount regardless of the home price. This model is growing in popularity, especially for buyers who want cost certainty. Flat fees typically range from $7,500 to $20,000 depending on the agent's experience and the market.
3. Hourly Rate
Some agents charge by the hour, typically $150 to $500 per hour depending on experience. This model is rare in residential real estate but can make sense for buyers who only need limited services, such as an experienced investor who handles most of the process independently.
Which Model Is Best for You?
For most buyers in Los Angeles, the percentage model makes the most sense because the seller typically covers the cost. If you are buying a higher-priced property ($1.5M+), a flat fee may save you money. The hourly model is almost exclusively used by sophisticated investors who do not need hand-holding through the process.
The key question is not which model costs less on paper. It is which model incentivizes your agent to fight for the best deal. With a percentage model, your agent earns slightly more on a higher sale price, but the difference is minimal. A skilled agent on a percentage model who negotiates your purchase price down $20,000 saves you far more than you would save switching to a cheaper fee structure with a less experienced agent.
AB 2992 explicitly states that all buyer agent compensation is negotiable. No agent can tell you their fee is "standard" or "non-negotiable." If they do, that is a violation of the law and a major red flag. You have the legal right to negotiate the fee structure, the amount, and the terms.
Agent Fee by Model on a $700,000 Home
I believe in total transparency. I walk every buyer through my fee structure, explain what services they are getting, and answer every question before asking anyone to sign. If you want to know exactly what you will pay and what you get for it, text me. I will lay it all out.
Who Pays the Buyer Agent? Sellers Still Can (and Often Do)
This is the single biggest misconception from the NAR settlement. Many buyers believe they now have to pay their own agent out of pocket. That is not accurate.
Sellers Can Still Offer Buyer Agent Compensation
The NAR settlement eliminated buyer agent compensation offers from the MLS. It did not eliminate seller-paid buyer agent compensation entirely. Sellers can still offer to pay the buyer's agent through:
- Listing descriptions and marketing materials
- Agent-to-agent communication
- Negotiation during the offer process
- Concessions written into the purchase agreement
In practice, many sellers in the Los Angeles market continue to offer buyer agent compensation because it attracts more buyers to their property. A home that offers to pay the buyer's agent gets more showings, more offers, and often sells for a higher price.
Your buyer agent agreement states your agent will earn, say, 2.5%. When you make an offer, your agent asks the listing agent whether the seller is offering buyer agent compensation. If the seller offers 2.5%, it aligns with your agreement and costs you nothing out of pocket. If the seller offers 2% but your agreement says 2.5%, the remaining 0.5% can be negotiated as part of the deal or becomes your responsibility.
What If the Seller Does Not Offer Compensation?
In some transactions, the seller does not offer to pay the buyer's agent. When this happens, you have several options:
- Negotiate it into the offer: Ask the seller to pay your agent's fee as part of the purchase terms
- Roll it into the loan: Some loan programs allow buyer agent compensation to be financed
- Pay it directly: You pay your agent's fee at closing from your own funds
- Adjust the offer price: Increase your offer to cover the fee, then have the seller credit it back
This is exactly why having an experienced agent matters more now than ever. An agent who understands compensation negotiation can structure offers so the seller covers the fee in the vast majority of transactions. I do this for my buyers consistently.
Real-World Scenarios: How Compensation Gets Handled
Understanding theory is one thing. Here is how buyer agent compensation actually plays out in three common LA transaction scenarios:
In my experience working in the LA market since 2013, the vast majority of sellers still offer buyer agent compensation because it is in their best interest. A home that cooperates with buyer agents gets more showings, more offers, and typically sells faster and for a higher price.
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✉ Text "Agent Fee Question" ☎ Call (213) 262-5092Old System vs New System: Side-by-Side
Understanding what changed helps you see why the new system actually benefits buyers. The differences are significant, and once you see them side by side, the advantages of the new framework become clear.
Here is a direct comparison of every major element:
| Element | Old System (Pre-2024) | New System (2026) |
|---|---|---|
| Written Agreement | Optional in most cases | Required by law before showings |
| Agent Compensation | Set by seller, shown on MLS | Negotiated between buyer and agent |
| Fee Transparency | Buyer rarely knew the exact fee | Fee disclosed in writing before work begins |
| Who Pays Agent | Almost always the seller | Seller, buyer, or both (negotiated) |
| Agent Services | Often undefined or vague | Must be listed in the agreement |
| Termination | Informal, often unclear | Specific terms in writing |
| Buyer Control | Low transparency, limited options | Full transparency, negotiation power |
Under the old system, buyers often had no idea what their agent was earning, what services they were obligated to provide, or how to switch agents if things were not working. The new system puts all of that in writing upfront. You have more information, more power, and more protection than buyers had five years ago.
The transition has been smoother than many predicted. Agents who always operated with transparency have seen no disruption. The agents who struggled are the ones who relied on the old system's opacity to avoid accountability. As a buyer, the new rules work entirely in your favor.
The NAR settlement resolved claims that the previous system artificially inflated buyer agent commissions. Whether you agree with that argument or not, the outcome is clear: buyers now have more control over their agent relationship than at any point in the history of American real estate. Use that control wisely by choosing an agent based on value, not just cost.
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🏠 Get Your Home ValueWhat to Look for Before Signing a Buyer Agent Agreement
Not all agreements are created equal. Here are the five most important things to review before you sign:
1. Compensation Amount and Structure
Is it a percentage, flat fee, or hourly rate? What is the exact number? Is there a minimum fee? Make sure you understand exactly what you are committing to pay, under what circumstances, and whether the agent will try to have the seller cover it.
2. Duration of the Agreement
How long does the agreement last? Common terms are 30, 60, 90, or 180 days. If you are not comfortable with a long commitment, ask for a shorter term. A confident agent will agree to a 30 to 60 day trial period because they know their work will earn your continued business.
3. Scope of Services
What exactly will the agent do for you? Look for specifics: market analysis, property searches, showing coordination, offer writing, negotiation strategy, inspection management, appraisal guidance, and closing coordination. The more detailed, the better.
4. Termination Clause
How can you end the agreement? Is there a cancellation fee? What constitutes a valid reason for termination? Can either party cancel with written notice, and if so, how many days of notice are required? This is your exit strategy.
5. Exclusive vs Non-Exclusive
An exclusive agreement means you work only with this agent. A non-exclusive agreement allows you to work with multiple agents. Most agreements are exclusive, which benefits both parties because the agent invests more time when they know you are committed.
Green Flags in an Agreement
- Clear, specific compensation terms
- Short initial term (30 to 60 days)
- Easy termination with written notice
- Detailed list of agent services
- Agent explains every section willingly
- No hidden fees or penalty clauses
- Dual agency disclosure clearly stated
Red Flags to Watch For
- Vague or unclear compensation terms
- Long lock-in period (6+ months)
- Large cancellation fee
- No list of services provided
- Agent rushes you to sign
- Agent refuses to explain sections
- No termination clause at all
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✉ Text "Review My Agreement"Termination Clauses: How to Get Out of a Buyer Agent Agreement
One of the biggest concerns buyers have is getting locked into an agreement with an agent who is not delivering. Here is what you need to know about ending the relationship:
Typical Termination Options
- Expiration: Most agreements have a set term (30 to 180 days) and expire automatically at the end
- Mutual cancellation: Both parties agree to end the agreement in writing
- Written notice: Either party provides written notice, typically 3 to 14 days in advance
- Breach: If the agent fails to perform the services outlined in the agreement
What About Cancellation Fees?
Some agreements include a cancellation fee if the buyer terminates early. Common structures include a flat fee (such as $500 to $1,000) or reimbursement for documented expenses the agent incurred on your behalf. Not all agreements have cancellation fees. If you are concerned about being locked in, negotiate this point before signing.
Most agreements include a "protection period" of 30 to 90 days after termination. If you buy a property that the agent showed you during your working relationship, you may still owe them their commission even after the agreement ends. This protects agents from buyers who use their services and then cut them out at the last minute.
Agreement Duration: What Is Standard?
| Term Length | Best For | Risk Level |
|---|---|---|
| 30 Days | First-time working together, trial period | Low risk for buyer |
| 60 Days | Active searchers, competitive market | Balanced |
| 90 Days | Most common standard term | Moderate |
| 180 Days | Longer timeline, specific search criteria | Higher commitment |
If you are working with a new agent for the first time, request a 30 to 60 day initial term. A confident agent will agree because they know their work speaks for itself. If the agent insists on a 6-month minimum, ask why. The answer will tell you a lot about how they retain clients.
My Approach to Termination
I keep my agreements simple and fair. If a buyer is not happy with my services, I would rather end the relationship on good terms than force someone to work with me. I offer short initial terms and an easy cancellation process. My goal is to earn your business every day, not hold you hostage with a contract.
Dual Agency Disclosure: What You Need to Know
Dual agency happens when one agent (or one brokerage) represents both the buyer and the seller in the same transaction. California allows it with written consent, but it creates a conflict of interest you should understand before you encounter the situation.
Your buyer-broker agreement should address dual agency explicitly. Understanding this section before you start touring homes prevents uncomfortable surprises later.
How Dual Agency Works
If you are working with an agent and they happen to have the listing on a property you want to buy, they would become a dual agent. They represent both you and the seller. California law requires them to disclose this conflict and get written consent from both parties before proceeding.
The Problem with Dual Agency
A dual agent cannot advocate aggressively for either side. They cannot tell the buyer to offer less. They cannot tell the seller to accept less. They become a neutral facilitator instead of your advocate. On a $700,000 purchase where skilled negotiation could save you $15,000 to $30,000, that neutrality costs you real money.
When Dual Agency Can Work
- You are experienced and handle your own negotiation
- The price is already fair and competitive
- The transaction is straightforward
- You trust the agent completely
When to Avoid Dual Agency
- First-time buyer who needs strong advocacy
- Complex transaction with multiple contingencies
- Competitive market with multiple offers
- High-value purchase where negotiation matters
- Any situation where you want aggressive representation
I disclose dual agency situations upfront and give my buyers the choice. If I have a listing you want to see, I will be transparent about the conflict and help you decide whether dual agency makes sense or whether you would be better served by a separate agent for that particular property. Your interests come first.
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✉ Text "Dual Agency Question" ☎ Call (213) 262-5092How to Interview Agents Before Signing an Agreement
Because you are now required to sign a written agreement, choosing the right agent matters more than ever. Here are the questions you should ask before committing:
How many buyer transactions have you closed in the past 12 months?
Look for at least 10 to 15 closed buyer transactions. An agent who closes 2 to 3 deals per year may not have the negotiation experience you need in a competitive LA market.
What is your compensation structure and is it negotiable?
A transparent agent will answer this directly. They should explain their fee, how it compares to market averages, and what you get for the money. If they are evasive, move on.
How do you handle situations where the seller is not offering buyer agent compensation?
This is the test. A skilled agent has strategies for negotiating seller-paid compensation into the offer. Ask for specific examples of how they have handled this in recent transactions.
What specific services do you provide beyond showing homes?
Opening doors is the easy part. You want an agent who provides market analysis, comparable sales research, negotiation strategy, inspection guidance, appraisal preparation, and closing coordination.
Will you represent other buyers competing for the same property?
Some agents submit multiple offers on the same property from different buyers. You want an agent who will not put you in competition with their own clients. Ask this directly.
What does your termination clause look like?
A confident agent offers fair termination terms. If the agent insists on a 6-month lock-in with a steep cancellation fee, that tells you something about how they retain clients.
If an agent gets defensive or evasive when you ask about compensation, services, or termination terms, they are not the right fit. A great agent welcomes scrutiny because they know their track record and service level speak for themselves.
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Why an Experienced Agent Matters More Now Than Ever
The NAR settlement and AB 2992 changed the landscape, but they did not change the fundamentals. A great buyer agent saves you money, protects your interests, and handles the complexity of an LA real estate transaction. In fact, the new rules make choosing the right agent even more critical.
Compensation Negotiation Is a Skill
Under the old system, buyer agent compensation was mostly standardized. Now, it requires negotiation on every transaction. An experienced agent knows how to structure offers so sellers cover the buyer agent fee. A newer agent may not have the relationships or strategy to navigate this consistently.
The LA Market Demands Expertise
Los Angeles is one of the most competitive real estate markets in the country. Multiple-offer situations are common. Off-market opportunities exist but require deep agent networks. Pricing strategy, inspection negotiation, and appraisal management can save or cost you tens of thousands of dollars. You want an agent who has done this hundreds of times.
The Cost of Going Without Representation
Some buyers consider going unrepresented to avoid the buyer agent fee. Here is what they give up: professional market analysis that prevents overpaying, negotiation expertise that typically saves $15,000 to $30,000 on a purchase, inspection guidance that catches expensive hidden issues, contract protection that prevents costly legal mistakes, and a fiduciary obligation that legally requires the agent to put your interests first.
The listing agent works for the seller. Their legal duty is to get the highest price and best terms for their client. Walking into that dynamic without your own representation is like showing up to court without a lawyer. You are technically allowed to, but the outcome is rarely favorable.
What the Data Shows
According to the National Association of Realtors 2025 buyer survey, 87% of home buyers used an agent. Buyers who used agents reported higher satisfaction with the purchase process and were more likely to feel confident they paid a fair price. In competitive markets like Los Angeles, where the median home price exceeds $800,000, the stakes are too high to navigate alone.
What 13+ Years of Experience Means for You
I will walk you through every line of the buyer-broker agreement. I will explain my compensation, what services you are getting, and how I plan to negotiate the fee so it costs you nothing out of pocket in most transactions. I will answer every question without pressure. And if you decide I am not the right fit, I will respect that and wish you well. That is how this should work.
Common Myths About Buyer Agent Agreements
Misinformation about the NAR settlement has created confusion for buyers across California. Here are the most common myths and the facts that correct them:
Myth 1: "Buyers now have to pay their agent out of pocket."
Fact: Sellers can still pay the buyer agent's compensation. The NAR settlement changed where the offer is communicated (no longer on the MLS), not whether it can happen. In most LA transactions, sellers continue to compensate buyer agents because it benefits them through increased buyer traffic and higher offers.
Myth 2: "I can just go to open houses without an agent to avoid signing an agreement."
Fact: You can attend open houses without a buyer agent agreement. However, the listing agent at the open house works for the seller, not you. If you want an agent to represent your interests, negotiate on your behalf, and protect you during the transaction, you will need to sign a buyer-broker agreement with your own agent.
Myth 3: "All buyer agent agreements lock you in for six months."
Fact: The term length is negotiable. You can request 30 days, 60 days, or any duration that works for both parties. A reputable agent will offer a reasonable term and a clear path to cancellation if the relationship is not working.
Myth 4: "It is cheaper to buy without an agent."
Fact: Unrepresented buyers do not automatically get a lower price. The listing agent still collects their fee from the seller. Without your own agent, you lose negotiation expertise, inspection guidance, contract protection, and someone whose legal duty is to protect your interests. Studies consistently show that buyers with agents pay comparable or lower prices than unrepresented buyers because agents identify overpriced properties and negotiate effectively.
Myth 5: "The NAR settlement means agents are going away."
Fact: The settlement restructured compensation, not the role of buyer agents. The vast majority of buyers still use agents because purchasing a home is the largest financial transaction most people will ever make. What the settlement did do is eliminate underperforming agents who relied on MLS-advertised commissions rather than providing genuine value.
Much of what you read about the NAR settlement on social media is incomplete or wrong. If you have questions about how the new rules apply to your specific situation, talk to a licensed agent who works in your market. The rules are nuanced and vary by state.
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🏠 Get Your Home ValueWhat Happens After You Sign: The Buyer Journey
Once you sign a buyer-broker agreement, here is what the process looks like from start to closing day:
Needs Assessment and Search Setup
Your agent conducts a detailed intake of your needs: budget, preferred neighborhoods, property type, must-have features, and timeline. They set up automated searches through the MLS so new listings matching your criteria land in your inbox instantly.
Pre-Approval Coordination
If you are not already pre-approved, your agent connects you with trusted lenders who compete for your business. A strong pre-approval letter makes your offers more competitive in the LA market.
Property Tours and Market Analysis
Your agent schedules private showings, previews properties before you see them to filter out mismatches, and provides comparable sales data so you understand the fair market value of every home you consider.
Offer Strategy and Negotiation
When you find the right home, your agent develops a negotiation strategy based on days on market, seller motivation, competing offers, and comparable sales. They write the purchase agreement, handle counteroffers, and negotiate seller concessions including buyer agent compensation.
Escrow, Inspections, and Appraisal
Your agent manages the entire escrow process: coordinating inspections, reviewing reports, negotiating repair credits, monitoring the appraisal, and ensuring all contingency deadlines are met. This is where experience pays off the most.
Closing Day
Your agent does a final walkthrough, reviews the closing statement, confirms all terms match the purchase agreement, and ensures you receive the keys with everything in order. The buyer agent fee is paid at closing, typically from the seller's proceeds.
A buyer agent does far more than open doors. From market analysis to negotiation to escrow management, a skilled agent handles dozens of moving parts that protect you from overpaying, missing deadlines, and inheriting someone else's problems. The agreement defines all of this in writing so there is no ambiguity about what you receive.
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Buyer Agent Agreement Cheat Sheet
| Topic | Key Point | Action Item |
|---|---|---|
| Is it required? | Yes, AB 2992 mandates it before showings | Every buyer must sign before touring |
| Who pays? | Negotiable. Sellers often still pay | Ask agent how they handle seller comp |
| Typical fee | 2% to 3% of purchase price | Compare agents before signing |
| Agreement length | 30 to 180 days is standard | Request a short initial term |
| Can I cancel? | Yes, check the termination clause | Read cancellation terms before signing |
| Dual agency | Legal in CA with written consent | Understand the conflict before agreeing |
| Services included | Must be listed in the agreement | Demand specifics, not vague promises |
| Negotiability | Everything is negotiable by law | Ask questions, compare options |
Frequently Asked Questions
Do I need a buyer agent agreement in California?
Yes. As of January 1, 2026, California law AB 2992 requires a written buyer-broker agreement before an agent can show you any property. This applies to every buyer working with a licensed real estate agent in California. The agreement must specify the agent's compensation, services provided, and duration of the relationship.
What changed with the NAR settlement for California home buyers?
The 2024 NAR settlement eliminated the practice of listing agents automatically offering compensation to buyer agents through the MLS. Before the settlement, sellers typically paid both agents. Now, buyer agent compensation must be negotiated separately and disclosed in writing before any home tours. California codified this through AB 2992, effective January 1, 2026.
How much does a buyer agent cost in California in 2026?
Buyer agent compensation typically ranges from 2% to 3% of the purchase price, though it can also be structured as a flat fee or hourly rate. On a $700,000 home, 2.5% equals $17,500. Sellers can still offer to pay the buyer agent's compensation, and many do. Your agent can also negotiate for the seller to cover their fee as part of the purchase offer.
Can I cancel a buyer agent agreement in California?
Yes, but the terms depend on your agreement. Most agreements include a termination clause that allows either party to cancel with written notice. Some agreements have a specific term length, such as 30, 60, or 90 days, and expire automatically. Others may require a cancellation fee if you terminate early. Always read the termination clause before signing.
Can the seller still pay my buyer agent's commission?
Yes. Despite what many buyers have heard, sellers can still offer to pay the buyer agent's compensation. They just cannot advertise that offer on the MLS. Instead, the offer is communicated through listing descriptions, agent-to-agent communication, or as part of the negotiation. In many California transactions, sellers continue to pay both sides because it attracts more buyers and often results in higher offers.
What should I look for in a buyer agent agreement before signing?
Review five key areas: compensation amount and structure, duration of the agreement, services the agent will provide, the termination clause and any cancellation fees, and whether the agreement is exclusive or non-exclusive. A transparent agent will walk you through every section and answer all your questions before asking you to sign.
What is dual agency and should I agree to it?
Dual agency is when one agent represents both the buyer and seller in the same transaction. California allows dual agency with written consent from both parties, but it creates an inherent conflict of interest. The agent cannot negotiate aggressively for either side. Most buyer advocates recommend avoiding dual agency, especially on high-value purchases where skilled negotiation can save tens of thousands of dollars.
How do I interview a buyer agent before signing an agreement?
Ask about their experience in your target neighborhoods, how many buyers they have closed in the past 12 months, their compensation structure and whether it is negotiable, what specific services they provide beyond opening doors, how they handle multiple-offer situations, and whether they will represent other buyers competing for the same property. A strong agent welcomes these questions.
Related Resources
Transparency Is Not New to Me. It Is How I Have Always Worked.
The NAR settlement and AB 2992 require what I have been doing for 13 years: clear communication, honest pricing, and putting buyers first. Let me show you the difference.
- ✓ Full agreement walkthrough before you sign
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- ✓ Seller-paid compensation in most transactions
- ✓ Short agreement terms with easy cancellation
- ✓ 13+ years and $200M+ in LA real estate
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