GLOSSARY — REAL ESTATE TERMS

Buyer Representation Agreement

A buyer representation agreement is a written contract between a home buyer and their agent, required in California since 2024, that establishes the agent's duties and specifies how and how much the agent will be paid.

Why this agreement is now required

Following the 2024 NAR settlement, California buyers must sign a written buyer representation agreement (sometimes called a BRBC, or Buyer Representation and Broker Compensation agreement) before touring homes with an agent. This written agreement replaced the informal, often undocumented arrangements that were common before the rule change.

What the agreement specifies

The agreement sets out the agent's compensation as a ceiling, not a floor -- for a flat fee arrangement, that's the flat dollar amount ($7,250 or $9,250, depending on price) rather than a percentage. It also defines the scope and duration of representation and what happens if the seller doesn't offer buyer-agent compensation at all.

What this looks like with a flat fee agent

Under a flat fee arrangement, the agreement states the compensation as a fixed ceiling -- $7,250 under $1.5M, $9,250 at or above -- rather than a percentage. If the seller offers more than that flat fee, the agreement specifies that the difference is credited back to the buyer rather than kept by the agent.

WHAT TO READ CAREFULLY BEFORE SIGNING

Review the compensation section line by line before signing
Ask about the agreement's duration and early-termination terms
Clarify what happens if the seller offers no buyer-agent compensation
Keep a signed copy of the agreement for your own records

Can I negotiate the terms of a buyer representation agreement?

Yes -- every term, including compensation, duration, and scope, is negotiable between you and your agent before signing.

What happens if I don't sign one?

Since 2024, agents generally cannot tour homes with you without a signed agreement in place, as it's now a required step in the process across California.

Can I cancel a buyer representation agreement early?

Terms vary by agreement, so review the cancellation provisions before signing. Most agents will discuss flexibility upfront if your circumstances change.