Understanding Written Buyer Agreements: What Homebuyers Need to Know

If you’re on the journey to buying a home, you’ll want a real estate professional by your side who is committed to working in your best interest. That’s where Written Buyer Agreements come into play.

As of August 17, 2024, homebuyers working with a REALTOR® will be required to sign a written buyer agreement once they’ve chosen their agent. If this sounds new to you, don’t worry—we’re breaking it all down so you know exactly what to expect.

What Is a Written Buyer Agreement?

Think of it as a roadmap between you and your real estate professional. This document outlines:

• The services your agent will provide
• How your agent will be compensated
• The length of your working relationship

It’s all about setting clear expectations so there are no surprises along the way.

Why Am I Being Asked to Sign This?

This isn’t just another piece of paperwork—it’s now a nationwide requirement for many real estate professionals. The change comes as part of a National Association of REALTORS® settlement regarding broker commissions.

While some states have already required these agreements for years, others are just now implementing them. So if you or someone you know hasn’t signed one before, that’s why.

Are Buyer Agreements Negotiable?

Absolutely. You have the power to negotiate:

• The services you’ll receive
• The length of the agreement
• The compensation structure

Your agreement should clearly state whether the compensation is $0, a flat fee, a percentage, or an hourly rate—but it cannot be open-ended. Make sure you’re comfortable with every detail before signing.

How Do These Agreements Benefit You?

A written buyer agreement works in your favor because it:

• Clearly defines what your agent will do for you
• Outlines how they will be compensated
• Reduces misunderstandings by setting expectations upfront

It’s all about transparency so you know exactly what to expect throughout your home-buying journey.

When Do I Need to Sign an Agreement?

You’ll need to enter into a written buyer agreement before touring homes with your agent, whether in person or virtually.

However, if you’re just attending an open house on your own or asking about services, you don’t have to sign anything yet.

Does This Mean I Have to Pay My Agent Out of Pocket?

Not necessarily. Your agreement will outline how your agent gets paid, but you can still:

• Negotiate for the seller to cover your agent’s compensation
• Request that the listing agent or seller provide payment
• Discuss all options with your real estate professional

It’s important to review your agreement carefully and explore all your options.

Can I Change or Cancel an Agreement?

Yes. If needed, you and your real estate professional can:

• Adjust the terms of the agreement together
• Discuss the exit conditions (which will be outlined in the contract)

Just make sure you understand the agreement’s cancellation policy before signing.

Final Thoughts

A written buyer agreement is simply a tool to make sure you and your real estate professional are on the same page. It’s all about setting clear expectations and ensuring a smooth home-buying process.

If you have any questions, don’t hesitate to ask your agent—we’re there to guide you every step of the way.