Since August 2024, California buyers must sign a written buyer representation agreement before touring a home with an agent. It spells out what your agent does, how long the deal lasts, and how they get paid. Here is exactly what is in it.
Why this agreement now exists
For decades, most California buyers worked with an agent on a handshake. The agent showed homes, wrote offers, and got paid out of the commission the seller had already agreed to split. Buyers rarely saw a contract with their own agent, and many never understood who actually represented them.
That changed with the 2024 National Association of REALTORS settlement. As a term of the settlement, MLS-affiliated agents must now sign a written agreement with a buyer before showing a property. California already had a buyer representation form available; what changed is that using it became mandatory, not optional. As of this writing in May 2026, that requirement is fully in force across every market I serve.
Here is what I tell clients: this is not a trap and it is not fine print designed to corner you. It is the first time the buyer side of a transaction gets the same written clarity the seller side has always had with a listing agreement. Read it, ask questions, and negotiate the terms you do not like.
What the agreement actually contains
Most California agents use the C.A.R. Buyer Representation Agreement (form BRBC). It is a few pages, and the substance comes down to five things you should understand before signing.
| Term | What it means |
|---|---|
| Scope | Whether the agent represents you for one specific property or any property in a defined area. |
| Term length | The start and end date. Tour-only agreements can be a single day; full agreements often run 30 to 90 days. |
| Compensation | The dollar amount or percentage your agent is owed, and who is expected to pay it. |
| Exclusivity | Whether you can also work with other agents during the term, or only this one. |
| Cancellation | How either party ends the agreement early and what survives cancellation. |
The compensation section, in plain language
The part that worries buyers most is compensation. The form states an amount your agent has earned for representing you. It might be a flat fee or a percentage of the purchase price. That number is what your agent is owed. It is not necessarily what comes out of your pocket.
In nearly every transaction I write today, the listing side still offers compensation to the buyer's agent, or the seller agrees to cover it as a negotiated concession. When that offered amount equals or exceeds what your agreement says, you owe nothing additional. If there is a gap, the agreement is what makes you responsible for the difference. That is the honest mechanics of it.
Because of this, I keep the agreed number realistic and I tell buyers up front how I plan to get the seller side to cover it. If a particular listing will not, you and I discuss that before you ever write an offer, never after.
Tour agreements versus full representation
There are two common ways to start. A short tour agreement covers a single day or a single property so you can see homes without committing to a long relationship. A full representation agreement covers a defined area and time period and is the right tool once you know you want to move forward.
There is nothing wrong with starting small. If you are still interviewing agents, ask for a one-day tour agreement. It satisfies the legal requirement, lets you see how the agent works, and obligates you to almost nothing. I offer this and you should expect any agent to.
Smart questions to ask before you sign
Before you put your name on anything, get straight answers to these questions. A good agent will welcome them.
How long is the term, and can we make it shorter? What happens if I am not happy and want to cancel? What exactly is your compensation, and how do you plan to get the seller to cover it? Does this agreement cover one home or a whole area? If I find a home on my own, do I still owe you?
If an agent dodges these or pressures you to sign on the spot, that tells you something. The agreement is supposed to protect both sides. It only does that if you understand it.
What I do differently with this form
When I sit down with a buyer, I do not slide the BRBC across the table and ask for a signature. I read the compensation and term sections out loud, explain the two or three places people get surprised later, and write in shorter terms when a buyer is not ready to commit for months.
I would rather earn a longer agreement by doing good work in the first two weeks than lock someone into 90 days they regret. The settlement made this form mandatory. It did not make it adversarial. Used well, it is just clear expectations in writing, which is how every real estate relationship should start.
Frequently Asked Questions
Do I legally have to sign a buyer agency agreement in California?
Yes. As of August 2024, an MLS-affiliated agent must have a signed written agreement with you before touring a home. You can, however, negotiate a short tour-only agreement instead of a long exclusive one.
Does signing mean I have to pay my agent out of pocket?
Not usually. In most transactions the listing side or seller covers your agent's compensation. The agreement only makes you responsible for any gap between what is offered and what you agreed to, which your agent should flag before you write an offer.
Can I cancel a buyer agency agreement?
Yes. Every agreement has a cancellation provision. Read it before signing so you know the process and any obligations that survive cancellation, such as a property you were already shown.
How long should the term be?
It is negotiable. A tour agreement can last one day. A full representation agreement often runs 30 to 90 days. If you are unsure about an agent, start short.
What if I find a house on my own after signing?
It depends on the agreement's scope. An area-wide exclusive agreement may still entitle your agent to compensation. Read the scope section and ask directly before you sign.
