If you are buying a home in Orange County, the way you work with an agent changed in 2024. Buyers now sign a written agreement with their agent before touring homes, and the agent’s pay is negotiated in the open rather than assumed. These changes came out of a national settlement involving the National Association of Realtors, and they took effect on August 17, 2024. This guide explains what a buyer representation agreement is, why it is now standard, and how buyer-agent compensation works today.
What a buyer representation agreement is
A buyer representation agreement is a written contract between you and the agent who represents you. It sets out what the agent will do for you, how long the arrangement lasts, and how the agent is paid. It puts the relationship in writing so both sides know what to expect. The agreement can be broad or narrow: it might cover a single property and a short window, or a wider search over several months. You and the agent decide the terms together before you sign.
Why it is now required
Since August 17, 2024, an agent who works with a buyer must have a signed written agreement in place before touring a home with that buyer. The agreement has to state, clearly and specifically, the compensation the agent will receive or how it will be figured, and the agent cannot be paid more than the amount you agreed to. The goal is transparency: you know what your representation costs before you start looking, rather than after.
How buyer-agent compensation works now
In the past, the seller’s side commonly advertised a set commission to the buyer’s agent through the Multiple Listing Service, and buyers rarely saw that number. That practice ended. A seller’s agent can no longer publish an offer of buyer-agent compensation on the MLS. Instead, what your agent earns is negotiated directly between you and your agent and written into your agreement. Payment can still come from several places: you may pay your agent directly, the seller may agree to cover some or all of it as a concession negotiated during the deal, or the two may be combined. The point is that the amount is set with you, in writing, up front.
What Orange County buyers should expect
When you begin working with us, we will walk through a buyer representation agreement before we tour homes, explain each term, and answer your questions about compensation before you commit to anything. During negotiations we look for ways to have the seller contribute toward your side where the deal allows, and we keep the numbers transparent from the first showing to the closing table. If you would rather understand the agreement before you sign, we are glad to review it with no obligation.
To start a home search in Orange County or review a buyer agreement together, schedule a consultation or contact Clark Smith at (949) 494-8830. Realatrends Real Estate, locally owned and operated since 1983.
This guide is general information, not legal advice. Representation agreements and compensation are negotiable and vary by situation. Review any agreement carefully and consult your agent or an attorney with questions specific to your purchase.
Frequently Asked Questions
Do I have to sign an agreement before touring a home?
Yes. Since August 17, 2024, an agent who represents you must have a signed written buyer agreement in place before touring a home with you. The agreement spells out the agent’s services and pay. You and the agent set the terms together before you sign, and it can cover as little as a single showing.
Who pays my buyer’s agent now?
Compensation is negotiated between you and your agent and written into your agreement. Payment can come from you directly, from the seller as a concession negotiated in the deal, or a combination of the two. What changed is that the amount is agreed with you up front rather than advertised on the MLS by the seller’s side.
Can the seller still contribute to my agent’s fee?
Yes. A seller can still agree to cover some or all of your agent’s compensation, but it is now handled through negotiation on the specific deal rather than a standing offer posted on the Multiple Listing Service. Whether a seller contributes depends on the property and the terms you negotiate.
How long does a buyer agreement last?
That is up to you and your agent. Some agreements cover one property for a single tour, while others cover a broader search over a set period. The length, scope, and pay are all negotiable and written into the agreement before you sign, so you are not locked into more than you agree to.
What if I want to understand the agreement before committing?
Ask your agent to review it with you. A good agent explains each term, including compensation, and answers your questions before you sign. You can request a shorter or narrower agreement to start. We are glad to walk through a buyer representation agreement with no obligation.