Why Do You Have to Sign a Buyer Representation Agreement Now?

If you’re in the market to buy a home, you may have recently been told that you must sign a Buyer Representation Agreement before even stepping foot into a property. This has left many buyers wondering: Why is this necessary? What changed? And most importantly, how does this impact me?

Let’s break it all down so you can navigate this new real estate requirement with confidence.

What Is a Buyer Representation Agreement?

A Buyer Representation Agreement (BRA) is a written contract between a homebuyer and their real estate agent. It outlines:

✔ The agent’s responsibilities – what services they provide
✔ The duration – how long the agreement is in effect
✔ Compensation details – how and when the agent gets paid
✔ Buyer obligations – what’s expected from you as the client

This agreement formally establishes the fiduciary duty of the agent, meaning they are legally required to act in your best interest throughout the home-buying process.

Why Is This Required Now?

As of August 17, 2024, the National Association of REALTORS® (NAR) implemented a rule that all real estate agents must have a signed Buyer Representation Agreement before showing homes to buyers. This change aims to increase transparency, professionalism, and accountability in the home-buying process.

How Does This Benefit You as a Buyer?

1️⃣ Clarity on Services & Expectations – You know exactly what your agent will do for you.
2️⃣ No Hidden Fees – The agreement clearly outlines agent compensation.
3️⃣ Better Negotiation Power – Your agent is contractually obligated to fight for your best interests.
4️⃣ Protection From Dual Agency Issues – Ensures your agent is working solely for you.
5️⃣ Access to More Homes – Many sellers prefer working with serious, pre-approved buyers with representation.

Can You Negotiate the Agreement?

Yes! Buyer broker compensation is negotiable and should be discussed before signing. You can negotiate the length of the agreement, the services included, and even the commission structure.

What Happens If You Don’t Sign?

Without a signed agreement, a REALTOR® cannot legally show you homes. If you refuse to sign, you may need to work with a different agent or seek alternative buying options.

Final Thoughts

The Buyer Representation Agreement may feel like an extra step, but it’s actually designed to protect you as a homebuyer. Understanding what you’re signing—and why—ensures a smoother and more transparent home-buying experience.