What Is a Buyer-Broker Agreement?

What Is a Buyer-Broker Agreement (BBA)?

A Buyer-Broker Agreement is a legal contract between you (the homebuyer) and your real estate agent.

Think of it as a mutual commitment: your agent promises to represent your best interests, without conflicts of interest, and you agree to work exclusively with them. It’s about building trust, setting expectations, and ensuring everyone is on the same page from the start.

What’s Changed with the NAR Settlement?

Following a major lawsuit, new rules took effect on August 17, 2024, as part of a settlement involving the National Association of Realtors (NAR). One of the most important changes? Agents must now have a signed Exclusive Buyer-Broker Agreement before showing you any properties—this is now required nationwide.

Another key change: the way your agent gets paid. Previously, the seller’s agent often covered the buyer’s agent’s commission. Now, that’s no longer guaranteed. Instead, you may need to negotiate with the seller to cover your agent’s fee, which could affect your overall offer and terms. Additionally, buyer-agent commission details are no longer listed on the MLS (Multiple Listing Service), so your agent will need to get this information directly from the listing agent.

While this might feel like added complexity, these changes are designed to promote greater transparency and fairness, making it clear who works for whom—and how they’re paid.

For more information , follow this link for FAQ about the NAR settlement.

Why Sign a Buyer-Broker Agreement?

In today’s market, clarity and commitment are more important than ever. A Buyer-Broker Agreement helps define your relationship with your agent and ensures they’re working solely for you—not the seller!

More than just showing homes, a good agent helps you avoid costly mistakes, keeps you on track with deadlines, and negotiates on your behalf. And because most agents are self-employed and only earn a commission when a sale closes, signing this agreement shows your commitment to them as well.

Key Parts of a Buyer-Broker Agreement

Here’s what to expect in a typical agreement:

• Term Length: Specifies how long you’ll work exclusively with your agent—this can range from a single showing to several months.

• Termination Rights: No one likes the idea of “breaking up,” but if things aren’t working out, the agreement will spell out how either party can end the relationship. Make sure you understand the conditions under which the agreement can be terminated, such as notice periods or potential compensation owed to the agent.

• Exclusivity: You agree to work with ONLY this agent or their brokerage during the contract period. If for any reason, you contact a new agent while still under contract with your current agent, the agent that you signed the contract with may still be owed the full commission whether they assisted with the process or not. Open communication with your agent is key.

• Compensation: Clarifies how the agent will be paid. If the seller doesn’t cover their commission, you may need to. A good buyer’s agent will try their best to negotiate with the seller to cover these costs.

• Property Criteria: Lists what you’re looking for—price range, location, property type—to guide your agent’s search.

• Agent Responsibilities: Describes the services your agent will provide, including home searches, showings, negotiations, and transaction support.

  
  

Why This Agreement Benefits You as a Buyer

At first glance, the agreement might seem like just another form—but it actually protects you and makes your home search more efficient.

Here’s how it helps:

• Clear Expectations: You know what your agent will do for you—and what you need to do in return.

• Fiduciary Duty: Your agent is legally bound to put your interests first.

• Legal Protection: If issues arise, the agreement outlines responsibilities and helps resolve disputes.

  
  

Your lender is also a crucial partner here. Before signing the agreement, they can help you understand how agent commissions might impact your financing options and assist in planning for that cost.

How to Pay Your Real Estate Agent

Understandably, covering an agent’s commission might feel like another hurdle when you’re already budgeting for a down payment, closing costs, and moving expenses.

Ideally, the seller will still pay your agent’s commission. This can be negotiated in your offer or included as part of seller concessions.

If the Seller Doesn’t Pay, What Are Your Options?

Don’t stress—there are several ways to manage buyer’s agent fees:

1.    Seller Concessions: Ask the seller to cover your agent’s commission.

2.    Increase the Purchase Price: Offer a higher price and request that the seller use the extra funds to pay your agent. The home must appraise at the new amount.

3.    Adjust Your Down Payment: Use some of your funds originally allocated for a down payment to cover the commission (check with your lender first).

4.    Use Savings: Pay your agent directly from your own reserves, if available.

5.    Mix & Match: Combine these options to find a strategy that works for your situation.

Open communication with your agent and lender is key. Your lender can also play an important role in helping you look like a strong buyer—keeping the seller’s agent informed and confident in your ability to close, which may make sellers more willing to offer concessions.

Final Thoughts: Why the Right Team Matters

Buying a home is one of the most significant financial decisions you’ll ever make. A great buyer’s agent is more than a tour guide—they’re your advocate, strategist, and support system from offer to closing.

By signing a Buyer-Broker Agreement, you’re choosing a partner who’s legally and professionally committed to helping you succeed.

Ryan and Laura Maples are both Accredited Buyers Representatives designated by the NAR. Earning the ABR designation signifies a commitment to excellence in buyer representation and demonstrates advanced knowledge and skills in working with homebuyers. 

With a strong team—your agent, your lender, and you—you’ll be empowered to make confident, informed decisions every step of the way.

Laura and Ryan Maples, Realtors®, ABR, PSA

Have questions or ready to get started? Reach out today and take the next step toward buying your new home.

Laura and Ryan Maples

The Maples Group

Realtors® of the Treasure Coast

TMG@MaplesRE.com

772-783-2585

Legal Disclaimer:

Please be advised that real estate agents are not attorneys and are not licensed to practice law. As such, your agent cannot provide legal advice, interpret contract language, or explain the legal implications of any document, including purchase agreements, addenda, or disclosures.

If you have questions regarding the meaning, enforceability, or legal consequences of any real estate contract or clause, we strongly encourage you to consult with a qualified real estate attorney before signing. It is your right and responsibility to seek independent legal counsel to ensure you fully understand your legal rights and obligations.