CA Buyer Rep Agreement? Buyer agrees to pay the commission?

In August last year, a major lawsuit transformed the USA real estate business. Agents must now have a signed agreement from a buyer before they can show that buyer any homes. And as of January 2025, this has also become the law in California. (This doesn't apply if you're just wandering into an open house.) You know what? The law protects you. The contract can't be for more than 90 days, and you don't pay a cent until escrow closes. The only time the agent sees any money is when they help you land a deal that you're happy with and that results in you actually buying the home. An even better option is to have your agent request that the seller cover the cost of your agent's commission. If the seller refuses, you have the right to back out of the deal. However most sellers are willing to negotiate this point, especially in today's market. You can ask for a short agreement if you're not sure. Maybe a week, to test things out and to see if you like what the agent does. If you feel it's a good fit, extend it for up to 90 days.

You do need to sign the Buyer Broker Agreement and acknowledge that you will pay the buyer's agent commission. However, the buyer's agent commission is still negotiable through the purchase contract. Most sellers are still paying the buyer's agent commission. If the seller doesn't agree to pay, then it is between you and your agent to negotiate how it will be paid.

Has to sign but not pay a penny until the successful transaction takes place! You do have to agree on the amount, that is typically a percentage or a flat fee that is totally negotiable. If you dont close you dont pay. Hopefully this makes sense. And if you find out you dont like the agent after you sign up, you can ask for cancellation.

Totally valid concern! In California, buyers now sign a Buyer Representation Agreement, and yes—it includes language that says you agree to pay the broker's fee. But don’t panic—it doesn’t mean you pay out of pocket. Agents usually try to negotiate that the seller covers it through the MLS or during closing. And no—you don’t have to sign on the spot. Ask questions, meet the agent, and only sign when you're confident they’re the right fit.

You sign an agreement as a commitment for your selected agent to go to work on your behalf. Broker's only get paid on the successful closing of a home. This fee can be negotiated by a seller so it is important to understand the numbers and hire an agent that is skilled in negotiations to get this fee or part of it covered by the seller.

A Buyer’s Broker Representation Agreement is a contract between you and a real estate agent or broker. It explains that the agent will represent your interests exclusively in your home search and purchase. The agreement usually covers how the agent will help you find homes, handle offers and negotiations, how the agent will be compensated (usually the seller pays the commission), and how long the agreement lasts. The main goal is to protect you and make sure your agent is fully committed to getting you the best deal. You typically don’t pay anything upfront — signing just means you agree to work with the agent. It’s always a good idea to read the agreement carefully and ask questions so you feel comfortable with the terms.

The law changed August 13th 2024 and the Buyer Broker representation Agreement is now mandatory to be signed between buyer and buyer's agent before the first showing takes place. There is no money required at the time of signing. Please take a look at the article I wrote explaining the new process. https://coronadotimes.com/news/2024/08/11/real-estate-understanding-the-new-real-estate-commission-rules/

No. You can sign a buyer agreement for any period of time less than 90 days. It can also be for a specific house or houses. You do not need to pay a Brokers fee prior to the close of escrow. There is also a box to check to have the seller pay the fee.

You can sign Buyer Rep Agreement for even single property, no money required to pay until close and that is also negotiable.

Yes you need to sign a buyer rep agreement to see a home BUT you have so many options. You can sign it for a single day of the showing, or even a single property. You can sign it for just an area or neighborhood. You can also cancel it at any time. This is such a great question. I'm so happy you asked it as you have options. Ask to read it first then you can choose what you want to agree to. If the agent does a good job and you find them qualified and helpful then you can sign a new agreement for up to 3 months. Best of luck to you!

Hi Linda, Please email me at [email protected] and I will reply with a very insightful, one page consumer guide to buyer broker agreements put out by the National Association of REALTORS. Of course, I am always happy to chat with you on the phone so I can answer any of your questions. I can be reached at 858-997-3704.

Hi Linda, Buyer will sign the Exclusive Buyer Broker Representation Agreement before the showings, correct. The rest of the details are in the agreement and can be negotiated.

Hi Linda - You will be asked to sign an agreement prior to showing a home, BUT the details are negotiable, so is the fee. That fee is a negotiated rate between you and your agent that is typically NOT due until you close on home. Most good agents can negotiate that the seller contribute to all or a portion of that fee at closing. Best of luck to you!