What Is a Buyer’s Agent Agreement?

You’ve found an agent you like, and now they want your signature before you’ve seen a single house. It’s normal to wonder what you’re signing and whether you’re about to get locked into something you can’t get out of.

How Does a Buyer’s Agent Agreement Work?

When you sign a buyer’s agent agreement, you and the agent agree on the terms of your working relationship. You may also hear it called a buyer agency agreement, buyer representation agreement, or buyer-broker agreement. The agreement lays out the services your agent will provide, how they’ll be paid, how long it lasts, and how either of you can end it.

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In many cases, you’ll need to sign a written agreement before an agent who participates in an MLS can tour homes with you, either in person or virtually. It sets expectations for both of you. A good agreement tells you what you’re paying for and gives you a reasonable way to end the relationship if the agent isn’t meeting your needs. Before you sign, review the fee, length of the agreement, and cancellation terms carefully.

What’s Included in a Buyer’s Agent Agreement?

A buyer’s agent agreement should cover six key details. The exact form and terms can vary by brokerage and state, but it should make clear what you’re agreeing to. Here are the key details to look for before you sign:

• Term Length: This is how long the agreement remains in effect. You and your agent can negotiate the length, and it may be as short as a single day or limited to one house.¹ Before you sign, look for a clear end date and check if the agreement renews automatically or includes a carryover period after it ends. If you haven’t found a home by the end of the term, you may be able to renew, renegotiate or work with another agent. Don’t commit to a timeline you’re uncomfortable with.
• Termination Rights: No, we’re not talking about the rights of cyborg assassins from the future (that’d be terminator rights). This section explains how you or your agent can end the working relationship. Look for details about when termination is allowed, how much notice you need to give, how it must be communicated, and any fees you could owe afterward. Ending the relationship can get sticky—one reason to think twice before hiring a friend or family member. And choosing the right real estate agent from the start can help you avoid that situation altogether.
• Buyer Exclusivity and Representation: Consider this the “not seeing other people” section. An exclusive agreement means you’ll work only with the agent or brokerage you sign with for the length of the contract. Before you sign, confirm that the agreement is exclusive and understand what happens if you find a home on your own or decide to work with someone else. If the relationship isn’t working out, review the termination terms and talk to the brokerage’s broker about whether they can release you or match you with another agent. Also watch for dual-agency language, which lets one agent represent both you and the seller in the same deal. That’s a conflict of interest, so don’t sign it.
• Compensation: This section explains how your agent will get paid: a flat fee, a percentage of the purchase price, or an hourly rate. The amount must be specific or clearly calculated, not open-ended, and it’s negotiable because commissions aren’t set by law.² Before you sign, make sure you understand what you could owe, when payment is due, and any additional fees. You’re ultimately responsible for the fee under your agreement, but you can ask the seller to contribute toward it as part of your offer. Because offers to pay a buyer’s agent can’t be listed on the MLS, your agent will need to negotiate that arrangement with the seller’s side.³ For a closer look at fees, see how much a real estate agent costs.
• Property Description: This section may describe the kind of home you’re looking for, including the price range, neighborhood, property type or size. It’s not the place to list every preference—like an at-home gym with east-facing windows for sunrise yoga. Instead, it helps define the scope of your home search and gives you and your agent a shared understanding of what you’re looking for.
• Agent Duties: Your agreement should describe the services your agent will provide. That may include finding and showing homes, writing and negotiating offers, preparing addendums, and helping keep the transaction on track. It’s also a good time to discuss expectations around communication, availability and scheduling. For the full picture, see what a real estate agent does.

What’s the Difference Between an Exclusive and a Nonexclusive Agreement?

An exclusive agreement means you work with only one agent or brokerage for a set period. A nonexclusive agreement may let you work with more than one agent. Here’s how they compare:

The exact terms can vary, so read the compensation and termination sections before you sign.

Are Buyer Agency Agreements Required?

In many cases, yes. Since August 17, 2024, agents who participate in a multiple listing service (MLS) and work with buyers generally need a signed written agreement before touring a home with them, whether in person or virtually.⁴

This is an industry practice change that followed the National Association of REALTORS^® (NAR) settlement—not a new federal law—and your state may have additional rules. Ask your agent what applies where you live.

And don’t assume working directly with the seller’s agent is a workaround. If that same agent also represents you in the purchase, that’s dual agency—and it creates a conflict of interest.

If you’re still not comfortable signing, ask yourself:

• Do you trust your real estate agent? Interviewing agents before you hire one is the best way to gauge whether they’ll represent your interests. Use these questions during your interviews to find an agent who has your back.
• Do you understand every term in the agreement? If it’s your first time buying a home, don’t let the paperwork and fancy lingo intimidate you. Get crystal clear on the agent’s compensation, term length, termination rights and any dual-agency language—and negotiate any terms you aren’t comfortable with.
• Could you live with the terms if your plans changed? Know what you could owe if you end the agreement early. If the potential cost would strain your budget, negotiate the terms or wait until you’re in a more financially secure position before signing.

Can You Negotiate a Buyer’s Agent Agreement?

Yes. The terms of a buyer’s agent agreement—including the compensation, length of the contract, and services your agent will provide—can be negotiated before you sign. An agent doesn’t have to accept every request, but you don’t have to sign an agreement that doesn’t work for you. Here’s what to ask for:

• A shorter term. Start with a term you’re comfortable with, especially if you haven’t worked with this agent before.
• Clear, fair compensation. Ask what your agent charges, when payment is due, and whether there are any additional fees. Get the exact amount or rate in writing. If it doesn’t work for you, negotiate before you sign.
• Clear exit terms. Ask what happens if you want to end the agreement, including the notice required and any fees that may apply.

Have More Home-Buying Questions?

Buying a home comes with plenty of questions beyond the buyer’s agent agreement. RamseyTrusted^® can connect you with experienced real estate agents in your area who can help you navigate the process. The real estate agents we recommend through RamseyTrusted are top-performing local agents with a track record of success. We endorse them because they believe in serving you the Ramsey way.