Buyer Broker Agreement Template: A Buyer's Guide

If you are buying a home and an agent hands you a form to sign before showing you anything, that form is almost certainly a buyer broker agreement. As of August 2024 it is no longer a niche document. The National Association of Realtors settlement made a signed buyer agreement a precondition for touring homes with an agent, and millions of buyers now sign one every year, often without understanding what they are agreeing to.

This guide explains what a buyer broker agreement does, the clauses that actually matter, how compensation works after the rule changes, and how to write or review one so you are not locked into terms you did not intend.

What Is a Buyer Broker Agreement?

A buyer broker agreement is a contract between a homebuyer and a real estate brokerage. It establishes that the brokerage, acting through one of its agents, represents the buyer's interests in a home purchase. It goes by several names: buyer agency agreement, buyer representation agreement, exclusive buyer brokerage agreement, or just a "buyer agreement."

Two things happen when you sign one. First, the agent owes you fiduciary duties: loyalty, full disclosure, confidentiality, and a duty to put your interests ahead of their own. Without a signed agreement, an agent showing you homes may legally represent the seller, not you. Second, you agree to how that agent gets paid if you buy a home.

That second point is where buyers get caught off guard, so it is worth slowing down on.

What the 2024 NAR Settlement Changed

For decades, the seller paid both the listing agent and the buyer's agent, and the buyer-side commission was advertised through the Multiple Listing Service. Buyers rarely thought about it because it felt free.

The settlement, which took effect in August 2024, changed two practices:

• Commission offers can no longer be posted on the MLS. A seller may still choose to pay the buyer's agent, but it is negotiated deal by deal rather than broadcast to every agent in the market.
• Buyers must sign a written agreement before touring homes with an agent who is a Realtor. That agreement has to state the agent's compensation in clear terms, and the fee cannot be open-ended.

The practical result: your buyer broker agreement now spells out a real number you may owe. If the seller covers it, you pay nothing out of pocket. If the seller does not, the contract makes you responsible. Reading the compensation clause is no longer optional.

Here is how the math can play out. Say your agreement sets the buyer-agent fee at 2.5% and you buy a $500,000 home. That fee is $12,500. If the seller agrees to pay the full amount, you owe nothing extra. If the seller offers only 2%, the contract may leave you covering the remaining half percent, which is $2,500 at closing on top of your down payment and closing costs. If the seller offers nothing, the whole $12,500 could be yours unless your agent renegotiates. None of these outcomes are unusual now, which is exactly why the number on the page matters more than it used to.

Types of Buyer Broker Agreements

Not every agreement locks you in to the same degree. There are four common structures.

Exclusive Right to Represent

The most common form. You commit to one brokerage for the term, and that brokerage earns its fee on any home you buy in the covered area, even one you find without the agent's help. In exchange, the agent has the security to invest real time in your search.

Exclusive Agency

You commit to one brokerage, but you reserve the right to find and buy a home entirely on your own without owing a commission. If the agent is involved in any way, they get paid. These are less common because the carve-out makes agents nervous.

Non-Exclusive (Open)

You can work with several agents at once. Only the agent who actually procures the home you buy earns a fee. This favors the buyer but gives no single agent a reason to prioritize you.

One-Time Showing or Single-Property

A narrow agreement covering a single home or a single day of showings. This is the right choice when you are not ready to commit to one agent but want to tour a specific listing. It satisfies the new rule without tying you down.

Key Clauses in a Buyer Broker Agreement

Whether you are drafting one or reviewing what an agent put in front of you, these are the provisions to read closely.

1. Parties and Agency Relationship

Name the buyer and the brokerage in full. The agreement should identify the individual agent and state plainly that the brokerage represents the buyer. If the brokerage also lists properties, look for how it handles dual agency, where the same firm represents both sides of a deal. Some states require written consent for that, and a few ban it outright.

2. Term and Geographic Scope

Two limits work together here. The term sets how long the agreement lasts. The geographic scope sets where it applies, often a county, a city, or a set of zip codes. A 12-month term across an entire metro area is a broad commitment. A 30-day term in two zip codes is narrow. Match the scope to your actual search.

3. Property Type

Some agreements cover only a defined property type, such as a single-family residence in a stated price range. If you end up buying a condo or a multi-unit building outside that description, the agreement may not apply. Make the description fit what you are realistically shopping for.

4. Compensation

The clause that matters most. It should state:

• The fee, usually a percentage of the purchase price or a flat dollar amount
• Whether you or the seller is expected to pay it
• What happens if the seller offers less than the stated fee, since you may owe the gap
• Whether the fee is owed at closing only, or under other conditions

Ask directly: "If the seller pays nothing, what do I owe?" The answer should be in writing, not a verbal reassurance.

5. Buyer Obligations

You typically agree to work exclusively with the agent during the term, to be honest about your financial position, and to route offers through the agent. Some agreements ask you to tour homes only with this agent. Know what you are promising.

6. Agent Duties

The agent commits to locating suitable properties, presenting offers, disclosing known material facts, and acting in your interest. Vague duties are a yellow flag. Specifics like "schedule showings within a reasonable time" and "advise on offer strategy" are better.

7. Termination and Protection Period

Look for how either side can end the agreement and how much notice is required. Then read the protection period (also called a holdover or tail clause). It can entitle the agent to a commission if you buy a home they introduced you to within a set number of days after the agreement ends, often 30 to 180. This is reasonable in principle but should list the protected properties rather than apply to everything you ever saw.

8. Dispute Resolution and Governing Law

State which state's law governs and how disputes are handled, whether through mediation, arbitration, or court. Real estate contracts are heavily state-specific, so this clause is not boilerplate.

How to Write a Buyer Broker Agreement: Step by Step

Step 1: Identify the parties and the relationship. Name the buyer and brokerage, name the agent, and state that the brokerage represents the buyer.

Step 2: Choose the structure. Exclusive, non-exclusive, or single-property. Pick the one that matches your level of commitment.

Step 3: Set a term and scope you are comfortable with. Shorter and narrower protects the buyer. You can always renew.

Step 4: Write the compensation clause in plain numbers. State the fee, who pays, and what you owe if the seller pays less than the stated amount.

Step 5: Spell out duties on both sides. What the agent will do, and what you agree to do in return.

Step 6: Add termination and a defined protection period. Make cancellation possible and keep the holdover tied to specific properties.

Step 7: Add governing law, dispute resolution, and signatures. Both parties sign and date. For a brokerage, the signatory must have authority to bind the firm.

Common Mistakes to Avoid

Signing a long term with a brand-new agent. A 12-month exclusive is a big bet on someone you just met. Start with 30 days or a single property and extend if it works.

Ignoring the compensation gap. If your agreement says 2.5% and the seller offers 2%, you may owe the half percent. On a $500,000 home that is $2,500. Know the number before you sign.

Treating the protection period as harmless. A broad holdover clause can follow you to a home you found on your own months later. Insist that protected properties be listed.

Assuming you cannot negotiate. The fee, the term, the scope, and the cancellation terms are all negotiable. Agents present a standard form, but standard does not mean fixed. If you are new to an agent and not sure yet, ask for a short term or a single-property version and say you will sign a broader agreement once you have worked together. Most agents would rather have you on a 30-day deal than not at all, and the worst they can say is no.

Confusing this with the purchase contract. The buyer broker agreement is between you and your agent. The agreement to buy the actual house is a separate document. If you want to understand that side, see our guide to the real estate purchase contract and what to expect among your closing documents.

How This Fits With Other Real Estate Agreements

A buyer broker agreement sits alongside several other contracts in a typical purchase. The way agents share fees between brokerages is covered by a real estate referral agreement, which matters when one agent sends you to another. If you are buying from an investor rather than a traditional seller, you may run into an assignment instead of a standard sale, which we cover in our guide to the wholesale real estate contract. Knowing where each document begins and ends keeps you from signing something twice or assuming a term carries over when it does not.

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A buyer broker agreement is a short document, but the compensation and protection-period clauses carry real money, and the rules now require getting them right before you tour a single home. Contractable generates a clear buyer's agency agreement in seconds, with the term, scope, fee, and termination language set for your situation. No legal background needed, and nothing buried in fine print.