A buyer agency agreement is a contract between a homebuyer and a real estate brokerage. It should define the services the agent will provide, the compensation the brokerage can earn, the properties or area covered, the length of the relationship, and the conditions for changing or ending it.
Read it before your first private tour—not while a showing appointment is starting. The fee, term, scope, and exit terms are negotiable, subject to state law and the brokerage’s agreement.
Key takeaways
- Ask for the agreement early enough to read it without pressure.
- Make sure compensation is a specific dollar amount, percentage, hourly rate, or other clearly defined figure—not an open-ended amount or range.
- Confirm what happens if the seller or listing broker pays less than the amount in your agreement.
- Match the term and geography to the search you are actually asking the agent to perform.
- Read the termination and protection-period clauses together.
- Get changes and promises in writing.
- Compare the agreement’s fee with the services, availability, local expertise, and rebate terms—not fee alone.
Why buyers are asked to sign before touring
The National Association of REALTORS® describes a written buyer agreement as an agreement that outlines the services a real estate professional will provide and what the professional will be paid. Under NAR’s nationwide practice changes, many real estate professionals must enter into a written buyer agreement before touring a home with a buyer in person or through a live virtual tour. The practice took effect on August 17, 2024.
The rule is not the same as a federal law applying to every person in every circumstance. State law, brokerage relationships, and local forms can impose their own requirements. NAR also says a buyer visiting an open house independently or merely asking an agent about services does not need to sign a written buyer agreement under its policy.
The agreement is useful when it creates clarity. It becomes a problem when a buyer treats it as a showing permission slip and overlooks the compensation, exclusivity, or exit terms.
The seven questions to answer before you sign
| Question | What to locate in the agreement | Why it matters |
|---|---|---|
| 1. What services will I receive? | Duties, search support, tours, offer preparation, negotiation, transaction coordination, and limits | You need to know what the fee buys and which tasks remain yours |
| 2. Exactly what can the brokerage earn? | A specific amount or calculation and when it is earned | A clearly defined fee prevents an open-ended obligation |
| 3. How will seller- or listing-broker-funded compensation affect my bill? | Credits against your obligation, shortfall language, and any cap | You need to know whether you could owe a difference at closing |
| 4. How long and where does the agreement apply? | Start date, end date, property type, geography, and any property-specific limits | A broad search agreement can bind you beyond the work you requested |
| 5. Is the relationship exclusive? | Exclusive representation, exceptions, and duties involving other agents or builders | You may owe a fee even if another source introduces the property |
| 6. What happens after the agreement ends? | Protection period and the list of protected properties or activities | A later purchase can sometimes trigger compensation |
| 7. How can either side end or change the relationship? | Termination, notice, mutual release, disputes, and written-modification clauses | “Cancelable” means little unless the process and consequences are clear |
The exact clause names vary. Use the questions to find the substance rather than expecting every state form to use the same headings.
1. What services will the agent and brokerage provide?
The agreement should match the help you expect. A buyer may want property search support, private showings, market analysis, offer strategy, contract preparation, inspection coordination, negotiation, financing coordination, and help through closing. The document may also identify tasks the agent cannot perform or services handled by affiliated companies.
Ask practical questions:
- Who will schedule and attend showings?
- Who covers when the primary agent is unavailable?
- Will the agent provide comparable sales before an offer?
- Who drafts and presents offers?
- What help is included after the contract is signed?
- Are transaction coordination, title, mortgage, inspection, or legal services separate choices?
Do not infer a service from a marketing page if the agreement says something different. The written agreement is the better guide to the brokerage’s obligation.
2. What is the exact compensation?
NAR’s consumer guidance says compensation is negotiable and not set by law. It also says the written agreement must clearly define the compensation—for example, as $0, a flat fee, a percentage, or an hourly rate—and not use an open-ended amount or range.
Read the whole compensation section. A percentage needs a stated base: the purchase price, another amount, or a definition in the form. A flat fee should state when it is earned and due. An hourly arrangement should explain which activities count, any limit, and whether another fee applies after a purchase.
Also look for:
- retainers or advance fees;
- administrative or transaction fees;
- minimum compensation;
- payment due if the transaction does not close;
- compensation involving leases, new construction, unlisted property, or off-market purchases;
- permission for the brokerage to receive payment from another source.
A single defined number is easier to compare than “whatever the seller offers.” It also lets you calculate a possible shortfall before writing an offer.
3. What happens when the seller or listing broker contributes?
The buyer is responsible for paying the real estate professional as described in the buyer agreement. That does not always mean the buyer must bring the full amount from personal funds. NAR’s guidance says a buyer can request and negotiate compensation from the seller or the seller’s agent.
The agreement should explain how outside compensation is credited against the buyer’s obligation. Consider a hypothetical transaction:
Example: calculate the potential shortfall
- Purchase price: $500,000
- Buyer-broker fee in the agreement: 2% of the purchase price
- Agreed seller or listing-broker contribution: 1.5% of the purchase price
| Item | Calculation | Amount |
|---|---|---|
| Buyer-broker fee | $500,000 × 2% | $10,000 |
| Agreed contribution | $500,000 × 1.5% | $7,500 |
| Potential buyer shortfall | $10,000 − $7,500 | $2,500 |
This example illustrates the arithmetic, not a typical fee or an estimate for a Houwzer client. The contract may use different terms, and a lender may limit or condition credits. Ask the agent and lender how the proposed arrangement would be documented before relying on it.
Under NAR’s settlement practice, a buyer broker may not receive more compensation from any source than the amount or rate agreed with the buyer. Do not assume an excess contribution automatically becomes cash to the buyer. A buyer rebate is a separate arrangement that must be permitted, documented, and accepted by the lender and closing parties.
Before submitting an offer, compare your fee obligations with the price and proposed credits using our guide to negotiating house price and terms.
4. How long does the agreement last, and what search does it cover?
NAR policy does not set a universal term. The agreement might cover one property, a short trial period, a defined region, or a longer search. State law and local forms may impose other rules.
Choose a term that fits the work you are requesting. A buyer who has already selected one property may not need the same scope as a buyer asking an agent to search several counties for months. A buyer interviewing agents may want a shorter initial period, if the brokerage agrees, and can renew after seeing how the relationship works.
Check all four dimensions:
- Time: start date, end date, and any automatic renewal.
- Place: cities, counties, states, ZIP codes, or another defined area.
- Property: residential type, price range, new construction, land, or investment property.
- Activity: purchase, lease, option, or another transaction covered by the form.
Avoid relying on a verbal statement such as “this only applies to today’s tour.” If that is the intended scope, the document should say so.
5. Is the relationship exclusive?
An exclusive agreement can give an agent confidence to invest time in a search, but the buyer should understand what exclusivity covers. The fee might be owed if the buyer purchases within the defined scope even when the buyer finds the property independently, contacts a builder, or works through another professional.
Ask how the agreement handles:
- open houses attended without the agent;
- a property found through a friend or owner;
- a new-construction sales office;
- homes outside the agreed geography;
- a property introduced before the agreement;
- a transaction involving another brokerage.
If the agent describes an exception, ask to have it written into the agreement or an addendum. An informal email may not override a signed contract’s modification clause.
6. What does the protection period cover?
A protection period can preserve the brokerage’s right to compensation when a buyer purchases a property after the agreement ends. Its exact effect depends on the language and applicable law.
Read it with three questions in mind:
- How long does the protection period last?
- Which properties or activities trigger it?
- Does the brokerage have to give the buyer a written list of protected properties?
The clause should be precise enough for you to know whether a later purchase could produce two competing obligations. If you begin working with another agent, give that professional any existing agreement and protection-period information before touring or making an offer.
7. How can the agreement be changed or ended?
NAR’s consumer guide says the buyer and real estate professional can mutually agree to change an agreement, and that agreements may contain specific exit conditions. That does not mean every agreement can be canceled unilaterally at any time.
Look for:
- who must receive notice;
- whether notice must be written;
- when termination becomes effective;
- whether the broker must sign a release;
- fees or reimbursements that survive termination;
- the protection period after termination;
- mediation, arbitration, venue, or attorney-fee provisions.
If the relationship is not working, start with the written agreement. Explain the problem to the agent and, if necessary, the managing broker. Ask for any release or modification in writing. If the contract, fee exposure, or dispute is significant, consult an attorney licensed in the state where you are buying.
Do not assume “most brokers will release you” or that a particular notice period always works. The document and applicable law control.
A simple agreement review worksheet
Before signing, complete these lines in your own words:
- Services I expect: __________________________________
- Compensation amount or formula: ______________________
- Maximum amount I could owe personally: _______________
- Start and end dates: _________________________________
- Geography and property type: _________________________
- Exclusive or nonexclusive: ___________________________
- Protection period: __________________________________
- How I can terminate: _________________________________
- Who must approve a change: ___________________________
- Any rebate and its lender conditions: _________________
If you cannot fill in a line after reading the agreement, ask for an explanation and point to the clause that answers it. If the explanation changes the deal, revise the document before signing.
How to compare buyer agents beyond the agreement
Contract terms matter, but the lowest stated fee does not prove the best result. Compare the actual service:
- local transaction experience;
- responsiveness and showing coverage;
- analysis before an offer;
- negotiation approach;
- inspection and contingency support;
- communication during underwriting and closing;
- conflicts and affiliated-business disclosures;
- the written rebate or compensation terms.
Ask each agent the same questions. A consistent interview makes the answers easier to compare.
Five useful interview questions
- What will you do before I make an offer that I cannot do from a listing portal?
- How do you help me estimate value and decide on price and contingencies?
- Who covers showings and urgent contract deadlines when you are unavailable?
- What could I owe if the seller or listing broker contributes less than your fee?
- Can I review your agreement before we schedule a private tour?
Clear answers are more useful than promises to “get you the best deal.” No agent can guarantee a price, inspection outcome, appraisal, loan approval, or closing.
Houwzer’s current buyer offer
Houwzer’s buyer page says its local agents share part of their commission with eligible buyers as cash back at closing. It also states that Houwzer buyer agreements can be canceled before the buyer goes under contract.
The rebate is not a universal fixed payment. Houwzer’s current disclaimer says availability and amount vary by state and county and may be affected by state regulations, commission rules, and lender guidelines. Some lenders restrict rebate use; minimum commissions may apply; and the rebate cannot be combined with other offers.
Before relying on a rebate, get the amount and conditions for your property and loan in writing. Confirm the credit with your lender early enough for it to appear correctly in the closing documents. The CFPB explains that agreed seller credits and other borrower-paid or credited items should be checked carefully on the Closing Disclosure.
Frequently asked questions
Is a buyer agency agreement required by law?
There is no single federal law requiring every buyer in every situation to sign the same agreement. NAR’s practice changes require written buyer agreements for many professionals before touring, and some states have their own requirements. Ask what rule and form apply where you are buying.
Can I attend an open house without signing one?
Under NAR’s policy, yes, if you visit the open house independently and are not touring with an agent who is working with you. You can also ask an agent about services before signing. A private or live virtual tour with an agent may trigger the written-agreement requirement.
How long should a buyer agreement last?
There is no universally correct term under NAR policy. The term should match the search and services you are requesting and comply with state law. Compare the proposed duration with the geography, exclusivity, termination rights, and protection period.
Can I negotiate the fee?
Yes. NAR states that compensation is negotiable and not set by law. A brokerage may accept, reject, or counter a proposed arrangement. Make sure the final amount or formula is clearly stated.
What if the seller does not pay my agent?
The buyer agreement controls what the buyer owes in agent fees. The buyer can ask the seller or listing broker to contribute, but they may decline. Before making an offer, calculate any potential shortfall and confirm how it would be paid.
Can I cancel after signing?
Read the termination clause. Some agreements allow cancellation on notice; others require mutual agreement or preserve obligations for certain properties. Houwzer currently says its buyer agreements can be canceled before the buyer goes under contract, but the signed agreement should still document the applicable terms.
Does a buyer rebate reduce the price of the home?
Not automatically. A rebate is a transaction credit or payment governed by the brokerage arrangement, state rules, lender requirements, and closing documents. It is different from a price reduction. Confirm how it affects cash to close and the loan with the lender.
Review the agreement before the showing clock starts
The best time to evaluate a buyer agency agreement is before you are focused on a specific home. Ask for the form, compare the seven questions, calculate the maximum amount you could owe, and get agreed changes in writing.
If you are considering Houwzer, review the current buy-with-Houwzer offer and rebate conditions and request the agreement and a property-specific rebate estimate before your first private tour. The right agreement should make the relationship easier to understand—not harder to leave or more expensive than you expected.
Sources
- National Association of REALTORS®: Consumer Guide to Written Buyer Agreements, reviewed September 22, 2026.
- National Association of REALTORS®: Settlement FAQs, reviewed September 22, 2026.
- Consumer Financial Protection Bureau: Closing Disclosure explainer, reviewed September 22, 2026.
- Houwzer: current buyer service and rebate terms, reviewed September 22, 2026.
