What we verified in “Buyer-agent agreement: what it must say”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. In the National Association of REALTORS (NAR) settlement agreement filed in federal court, NAR agreed to require, unless inconsistent with state or federal law or regulation, that member agents who participate in an MLS and work with a buyer sign a written agreement with that buyer before the buyer tours any home; if the agent will receive compensation from any source, the agreement must specify and conspicuously disclose the amount or rate, or how it will be determined; the amount must be objectively ascertainable and not open-ended (for example, 'whatever amount the seller is offering to the buyer'); and the agent may not receive more from any source than what was agreed with the buyer.

   Sources 1 · Corrected Settlement Agreement, Burnett v. National Association of REALTORS (Document 1458-1, filed April 19, 2024), paragraph 58(vi): 'unless inconsistent with state or federal law or regulation'; 'MLS Participants working with a buyer enter into a written agreement before the buyer tours any home'; 'the agreement must specify and conspicuously disclose the amount or rate of compensation it will receive or how this amount will be determined'; 'objectively ascertainable and may not be open-ended'; 'buyer broker compensation shall be whatever amount the seller is offering to the buyer'; 'may not receive compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer' · Checked October 17, 2026

2. In the same agreement, NAR agreed to require its agents to tell sellers and buyers, in conspicuous language, that broker commissions are not set by law and are fully negotiable, including in their agreement with buyers; to prohibit offers of compensation to buyer brokers on the MLS; and to prohibit its agents from saying their services are free unless they will receive no compensation from any source for them.

   Sources 1 · Corrected Settlement Agreement, paragraph 58(ii) ('making offers of compensation on the MLS to buyer brokers or other buyer representatives'), 58(vii) ('representing to a client or customer that their brokerage services are free or available at no cost to their clients, unless they will receive no financial compensation from any source for those services') and 58(ix) ('disclose to prospective sellers and buyers in conspicuous language that broker commissions are not set'; 'by law and are fully negotiable'; 'in their agreement with buyers if it is not a government-specified form') · Checked October 17, 2026

3. According to NAR's page for homebuyers, you will sign a written agreement with your agent before touring a home; before signing it, you should make sure it reflects the terms you negotiated and that you understand exactly what services and value you will get, and for how much; the agreement must include four components about compensation, and compensation must be objective (for example, $0, a flat fee, a percent or an hourly rate); written agreements apply to both in-person and live virtual tours; you do not need one just to talk to an agent at an open house or ask about their services; your agent's compensation remains fully negotiable; and these changes are already in effect.

   Sources 2 · Homebuyers: What the NAR Settlement Means for You: 'You will sign a written agreement with your agent before touring a home'; 'you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much'; 'The buyer agreement must include four components concerning compensation'; 'e.g., $0, X flat fee, X percent, X hourly rate'; 'Written agreements apply to both in-person and live virtual home tours'; 'You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services'; 'Compensation for your agent remains fully negotiable'; 'These practice changes went into effect August 17' · Checked October 17, 2026

4. According to NAR, the seller may agree to offer compensation to your agent, and that practice is permitted, but the offer cannot be shared on an MLS, which is a local marketplace where buyer and listing brokers share information about homes for sale; and you can still accept concessions from the seller, such as offers to pay your closing costs.

   Sources 2 · Homebuyers: What the NAR Settlement Means for You: 'The seller may agree to offer compensation to your agent'; 'This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)'; 'MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale'; 'You can still accept concessions from the seller, such as offers to pay your closing costs' · Checked October 17, 2026

5. According to NAR's guide to written buyer agreements, the agreement should be organized and written in terms everyone can understand; it should clearly spell out the agent's services; it should disclose all of the buyer's contractual obligations, the duties of confidentiality owed to the buyer and the Equal Housing Opportunity statement; the agent and buyer can negotiate how long the agreement lasts, including whether it is automatically extended until closing once a purchase contract is signed; it may address termination with or without cause by either side; and it may include a carryover period in which compensation may be owed to the agent if you end the agreement and then sign a purchase contract within an agreed time.

   Sources 3 · Written Buyer Agreements 101: 'Agreements should be organized, written in understandable terms for all parties'; 'Agreements should clearly articulate the services the MLS Participant will provide buyer'; 'Agreements should clearly disclose all contractual obligations of the buyer, duties of confidentiality owed to the buyer, the Equal Housing Opportunity statement'; 'MLS Participants and buyers can negotiate and agree to the duration of the agreement'; 'whether the term is automatically extended until closing upon purchase contract ratification'; 'termination with cause and without cause by both the buyer and the MLS Participant'; 'whether there is a carryover period, where compensation may be owed to the MLS Participant if the buyer terminates the written buyer agreement and subsequently executes a purchase agreement within an agreed upon time following termination of the buyer agreement' · Checked October 17, 2026

6. According to the same NAR guide, the agent and buyer may agree to a retainer fee and whether it is included in total compensation, credited against it or refundable; the agreement may address how conflicts of interest are resolved, such as representing other buyers making offers on the same home or dual agency; it may include mandatory or optional mediation or arbitration and a waiver of jury trial and class actions; it may include warnings about wire fraud; and NAR policy does not dictate the type of relationship, the term (for example, one day, one month, one house or one zip code), the services or the type or amount of compensation.

   Sources 3 · Written Buyer Agreements 101: 'may agree to a retainer fee and address whether any retainer is included in total compensation, credited against compensation and/or refundable'; 'representing other buyers submitting offers on the same property, dual agency, designated agency, or transaction brokerage'; 'mandatory or optional alternative dispute resolution, such as mediation or arbitration'; 'The parties may also agree to waive trial by jury and class actions'; 'Consider including warnings regarding wire fraud'; 'NAR Policy Will Not Dictate'; 'one day, one month, one house, one zip code' · Checked October 17, 2026

7. In a statement of interest filed in November 2024 in the Burnett case, the Department of Justice said it did not participate in that litigation or the settlement; that the settlement introduces a new NAR rule requiring buyers and brokers to sign a written agreement before the buyer tours any home; that this provision may harm buyers and limit how brokers compete for clients; and that the settlement expressly allows offers of compensation to buyer brokers to continue and be posted publicly, but prohibits making them on an MLS.

   Sources 4 · Statement of Interest of the United States, Burnett v. National Association of REALTORS, No. 4:19-cv-00332-SRB (Document 1603, filed November 24, 2024): 'Because the United States did not participate in either this litigation or the proposed settlement'; 'The proposed settlement also introduces a new NAR rule that requires buyers and brokers to enter a'; 'written agreement before the buyer tours any home'; 'the new provision that requires buyers and brokers to make written agreements before home tours may harm buyers and limit how brokers compete for clients'; 'expressly allows offers of compensation to continue and for them to be posted publicly; it simply prohibits making these offers on an MLS' · Checked October 17, 2026

8. According to the CFPB, real estate agents can represent the buyer or the seller, and sometimes both; state laws can require your agent to tell you who they represent and on what terms; and it suggests asking, for example, whether your agent keeps your conversations confidential and how they are paid.

   Sources 5 · Find the right home (page last modified December 12, 2024), 'Know who your real estate agent represents': 'Real estate agents can represent the buyer or the seller, and sometimes both'; 'State laws can require your real estate agent to tell you who they are representing and under what terms'; 'Find out, for example, whether your agent keeps your conversations confidential and how they are compensated' · Checked October 17, 2026

9. Under Regulation Z, the Closing Disclosure itemizes under 'Other' each charge in the transaction for services obtained at closing by the consumer, the seller or another party, with the name of the person receiving the payment and in the applicable column; and its contact information table includes the buyer's and the seller's real estate brokers, with their license number or other identifier.

   Sources 6 · 12 CFR §1026.38(g)(4) ('an itemization of each amount for charges in connection with the transaction'; 'obtained in the real estate closing by the consumer, the seller, or other party, the name of the person ultimately receiving the payment') and (r) ('consumer's real estate broker (under the subheading'; 'seller's real estate broker (under the subheading'; 'license number or other unique identifier') · Checked October 17, 2026

10. On the CFPB's sample Closing Disclosure, real estate broker commissions appear on page 2, in Section H, 'Other', with the name of the broker receiving them.

    Sources 7 · Sample Closing Disclosure, page 2: 'H. Other'; 'Real Estate Commission to Alpha Real Estate Broker'; 'Real Estate Commission to Omega Real Estate Broker' · Checked October 17, 2026

11. HUD-approved housing counselors give independent advice on buying a home, renting, defaults and credit, often at little or no cost.

    Sources 8 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 17, 2026