The Buyer-Broker Agreement: What Changed for Homebuyers After the NAR Settlement

If you've started house hunting recently, you've likely already hit this: an agent hands you a form to sign before the first showing, and it names a dollar amount or percentage next to their name. That's the buyer-broker agreement, and it's the most visible everyday change from the 2024 real estate commission settlement. Most coverage of that settlement focused on sellers. Here's what actually changed for you as the buyer. Understanding what a buyer broker agreement means for your obligations and costs is essential before you sign.

Quick answer

MLS participants working with a buyer are required to have a signed, written agreement with you before touring a home, whether in person or on a live virtual showing (open-house browsing is exempt). That agreement has to name a specific compensation amount or rate, not a vague promise tied to what the seller happens to offer, and it has to say plainly that commissions are negotiable. The bigger practical change is that buyer-agent pay is no longer advertised on the MLS the way it used to be, so covering it is now a real negotiation, sometimes with you paying directly, sometimes with the seller agreeing to cover it as negotiated compensation, rather than an automatic default.

What the agreement actually has to say

The rule change came out of a 2024 antitrust settlement involving the National Association of Realtors, with practice changes taking effect nationwide on August 17, 2024. Per NAR's own summary of the settlement, a compliant buyer-broker agreement has to include four specific things:

1. A specific, conspicuous compensation disclosure. The amount or rate the agent will be paid has to be stated plainly, not buried in boilerplate.
2. Objective terms only. The compensation has to be something concrete, a flat fee, an hourly rate, a percentage, or $0, not an arrangement where the agent simply collects "whatever the seller offers."
3. A compensation cap. The agent can't end up collecting more than the agreed amount, even if it comes from a combination of sources (you and a seller concession, for example).
4. A negotiability statement. The agreement has to state clearly that commissions are negotiable and not set by law.

Who actually ends up paying

This is where most of the confusion sits. Before the settlement, a seller typically set one total commission, and the buyer-agent's share was advertised through the MLS, which created a default expectation that sellers paid both sides. That advertising channel is gone. In its place, three things can happen, and they're not mutually exclusive:

• You pay your agent directly, per the amount you agreed to in the buyer-broker agreement.
• The seller agrees to cover it as negotiated compensation, negotiated as part of your purchase offer rather than advertised on the listing. This is still common in practice, particularly in a buyer's market, it just isn't automatic anymore.
• You split the difference, negotiating a lower direct fee in exchange for asking the seller to cover the rest.

The practical shift is less "buyers now always pay" and more "buyers now have to actively negotiate what used to happen by default." If your agent hasn't discussed how they expect to get paid on your specific offer, ask before you're deep into a transaction.

VA loans: brokerage fees and concessions are different

VA does not treat seller-paid buyer-broker charges as a seller concession. Paragraph 4(c) of VA Circular 26-24-14 explicitly makes that distinction. Do not subtract those charges from the VA concession allowance as though every seller payment were the same kind of credit.

The circular establishes a temporary local variance, effective August 10, 2024, allowing reasonable and customary buyer-broker charges under its conditions. These include the property's market circumstances concerning how broker compensation can be established. Buyer-paid charges cannot be included in the loan amount. The lender must consider them when assessing sufficient liquid assets to close and retain the representation agreement.

Ask your lender to confirm applicable current circulars, documentation, and cash-to-close treatment. Other seller-paid costs need their own classification. Do not transfer VA treatment to FHA or conventional loans without checking those programs' rules.

What this means for your next offer

Before signing, understand the compensation amount, services, term, exclusivity, and termination obligations. Obtain a written cash-to-close estimate rather than assuming a seller will cover the fee.

Correction and methodology

September 4, 2026 correction: An earlier version incorrectly counted seller-paid buyer-broker charges toward VA seller concessions. We corrected that statement throughout the article and its summaries. We also removed an unsupported claim of an April 2026 permanent rule and an unverified settlement-claims deadline. The cited VA circular describes a temporary variance valid until rescinded; we have not verified the previously claimed permanent-rule date.

This guide uses primary NAR and VA materials. It does not determine contract enforceability or individual loan approval. Confirm current requirements with your lender and seek legal advice on your own agreement. See our methodology and affiliate disclosure.

Sources

• NAR: Written Buyer Agreements 101
• NAR: What the settlement means for homebuyers
• VA Circular 26-24-14

This is educational information, not individualized legal or financial advice.