California Buyer Representation Agreements Explained: What Homebuyers Need to Know Before Signing

By Michelle Saporito | Your Central Valley Realtor

Updated October 27, 2026

Quick Answer: A buyer representation agreement is a written contract between a homebuyer and a real estate broker that explains the services the broker will provide, how the broker will be compensated, when compensation is due, and how the agreement can end. California requires these agreements when a real estate broker represents a buyer. If you're getting ready to tour homes with a buyer's agent, you should expect to discuss and sign an agreement first.

If you're thinking about buying your first home in Manteca, Ripon, Lathrop, River Islands, Tracy, or the surrounding Central Valley, you might be wondering why a real estate agent is asking you to sign an agreement before looking at homes.

I understand why that might feel like a big step.

Buying a home is already a significant financial decision. And when someone puts a contract in front of you, it's reasonable to want to know exactly what you're agreeing to.

Here's what I want you to understand.

You should never feel rushed into signing a document you don't understand.

Let's talk about what buyer representation agreements mean, why they're required, and what questions you should ask.

1. What Is a Buyer Representation Agreement?

A buyer representation agreement, also called a buyer-broker representation agreement, is a contract that establishes the working relationship between a buyer and a real estate broker.

It explains what the brokerage agrees to do for you and what responsibilities you agree to accept.

California Civil Code Section 1670.50 requires buyer-broker representation agreements to address at least four subjects:

1. The broker's compensation

2. The services the broker will provide

3. When compensation becomes due

4. How the agreement terminates

The actual agreement may include additional provisions, such as its duration, whether the representation is exclusive, and the geographic or property-related scope of the relationship.

Before signing, you should understand every provision that affects your obligations.

2. Why Are Buyers Being Asked to Sign Agreements Before Touring Homes?

The real estate industry made significant changes to buyer representation and compensation practices beginning in 2024.

As part of the National Association of REALTORS® settlement-related practice changes, covered MLS participants working with buyers generally must have written buyer agreements before touring homes with those buyers.

California also enacted Assembly Bill 2992, effective January 1, 2025, requiring buyer-broker representation agreements as soon as practicable and no later than when a buyer signs an offer to purchase real property.

California's regulations effective January 1, 2026 provide additional clarification.

Under those regulations, there is a rebuttable presumption that obtaining the signed agreement before a buyer's agent shows a property, in person or virtually, is practicable.

In everyday language, if you're working with an agent who represents you, expect the agreement conversation to happen before you tour homes together.

This isn't something you should discover after you've already begun writing an offer.

The agreement should be discussed early, with enough time for you to ask questions.

3. Do You Have to Sign an Agreement Just to Visit an Open House?

Not necessarily.

If you visit a public open house on your own, you generally don't have to sign a buyer representation agreement simply to walk through the property or speak with the agent hosting it.

The same applies when you're initially interviewing agents and asking about their services.

The important distinction is whether an agent is working with you as your buyer's representative.

For example, the listing agent hosting an open house may represent the seller.

That agent can show you the property while acting solely for the seller without becoming your buyer's representative.

If you decide you want an agent to represent you, you'll need to discuss the appropriate agreement before proceeding with buyer representation services.

My advice: Don't confuse visiting an open house with choosing someone to represent you.

Those are different decisions.

4. What Services Should Your Buyer's Agent Provide?

A buyer representation agreement should explain the services the brokerage has agreed to provide.

Depending on the agreement, those services may include:

• Understanding your housing needs and financial priorities

• Identifying properties that match your criteria

• Arranging property tours

• Researching relevant property and market information

• Helping you evaluate asking prices and comparable sales

• Explaining purchase contract terms

• Preparing and presenting offers

• Discussing negotiation options

• Helping coordinate inspections and other transaction steps

• Monitoring important contractual deadlines

• Communicating with the parties involved in the transaction

The exact services are determined by the agreement and applicable duties. They shouldn't be assumed simply because someone holds a real estate license.

When I'm helping buyers explore a community, I like to begin by understanding why they want to move and how they want to live.

Maybe you're hoping for a backyard.

Maybe commute time matters.

Maybe you're comparing newer homes with resale properties or wondering whether a neighborhood's amenities fit your lifestyle.

I want you to understand more than just the number of bedrooms and bathrooms.

I want you to understand the questions you should be asking about the property, the community, and the overall cost of ownership.

That starts with listening.

5. Does Signing an Agreement Mean You Have to Pay Your Agent?

This is probably one of the biggest questions buyers have.

Signing a buyer representation agreement does not necessarily mean you must pay your agent directly out of pocket. But it can create a financial obligation.

The agreement states the compensation terms and when compensation is due.

Depending on the transaction and applicable agreements, buyer-broker compensation may be paid by the seller, the listing brokerage, the buyer, or through another permitted arrangement.

The important thing is that these terms must be clear.

For example, imagine you agree in writing to broker compensation equal to 2% of a home's $700,000 purchase price.

That would equal $14,000.

This is a hypothetical calculation, not a standard or recommended commission rate.

Now imagine the seller agrees to pay all or part of that amount.

Your actual responsibility would depend on your representation agreement, the seller's agreement, the transaction documents, and applicable rules.

If the seller doesn't agree to cover the full amount, you could have a remaining financial obligation under your contract.

Don't assume the seller will automatically pay your agent.

And don't assume you'll automatically have to pay everything yourself.

Ask how compensation will work before signing.

6. Are Real Estate Agent Commissions Negotiable?

Yes.

Real estate broker compensation is negotiable and is not set by California law.

There is no legally required standard percentage for buyer-agent compensation.

Before signing an agreement, you can discuss the compensation amount or rate, the services covered, and other terms of the relationship.

For MLS participants subject to the applicable settlement rules, compensation must be stated in a specific, objectively ascertainable way.

For example, it could be expressed as an agreed percentage, flat fee, hourly rate, or another permitted objective calculation.

It should not be an open-ended statement saying the broker will receive whatever amount a seller happens to offer.

Applicable MLS rules also prohibit the broker from receiving more compensation for covered brokerage services than the amount or rate agreed to in the buyer agreement.

That makes it important to discuss compensation upfront rather than waiting until you're in the middle of a transaction.

7. How Long Does a Buyer Representation Agreement Last in California?

For agreements covered by California's individual-buyer term limitation, the maximum term is 90 calendar days under the regulations effective January 1, 2026.

The regulations explain how the starting date is calculated, including situations involving a delayed effective date.

The agreement can be shorter than the maximum period.

For example, buyers and brokers may discuss a shorter period or a more limited scope of services, if they mutually agree.

There is an exception to the statutory maximum term for agreements involving buyers that are corporations, limited liability companies, or partnerships.

Does the Agreement Automatically Renew?

No.

California law prohibits automatic renewal of buyer-broker representation agreements.

Renewals must be documented in writing, dated, and signed by the parties. The applicable term restrictions continue to apply.

It's important to review the specific expiration date in your agreement.

8. What Does an Exclusive Buyer Representation Agreement Mean?

An exclusive agreement generally means you're committing to work with a particular brokerage for the services or transactions covered by that agreement.

The exact scope matters.

It may address a geographic area, certain types of properties, a period of time, or other negotiated terms.

If you sign an exclusive agreement and then work with another agent to purchase a property covered by that contract, you could create a contractual dispute or compensation obligation.

That doesn't mean all buyer representation agreements are necessarily identical or exclusive.

You should ask whether the agreement is exclusive, what properties it covers, and whether any obligations continue after the agreement expires.

Don't rely only on the title of the document.

Read what the actual provisions say.

9. Can You Cancel a Buyer Representation Agreement?

Possibly, but the answer depends on the contract.

California requires buyer-broker representation agreements to address termination.

That doesn't mean every agreement can be canceled at any moment without conditions or consequences.

Some agreements may provide specific cancellation procedures, while others may require mutual agreement or contain additional contractual obligations.

If you're uncomfortable with the relationship or no longer want to work together, discuss the issue with the broker promptly.

Ask for a written explanation of your cancellation options.

If termination is agreed upon, make sure it is documented properly.

You should also understand whether any compensation obligations survive cancellation or expiration under the agreement's terms.

If you have a contractual dispute or don't understand a termination provision, consult a qualified California real estate attorney.

10. Can You Still Negotiate for the Seller to Pay Buyer-Agent Compensation?

Yes.

The changes to buyer representation practices did not prohibit sellers from agreeing to compensate a buyer's broker.

However, seller-paid compensation is not automatic.

It must be negotiated and documented appropriately.

Depending on the transaction, a seller may agree to pay buyer-broker compensation directly or through an applicable brokerage arrangement.

There may also be separate opportunities to negotiate seller concessions toward eligible buyer expenses, subject to lender requirements.

Those arrangements should not be confused with one another.

Your lender, broker, and escrow professional should understand how compensation and credits will be reflected in the transaction.

The goal is to know what you'll be responsible for before committing.

11. What If You're Buying a New-Construction Home?

Buyer representation agreements are also important when considering new construction.

If you're visiting a builder's sales office in Lathrop, River Islands, Manteca, or Tracy, remember that the builder's sales representative may represent the builder.

That isn't necessarily the same as having someone representing your interests as the buyer.

You can discuss having your own representation when purchasing new construction.

But you should understand the builder's registration and compensation policies before visiting.

Some builders have requirements about when an outside agent must be identified or registered.

Policies vary by builder and community.

Ask about representation before assuming that the sales representative is working on your behalf.

Also confirm how buyer-broker compensation would be handled if you're working with your own agent.

12. Seven Questions to Ask Before Signing a Buyer Representation Agreement

I encourage buyers to ask these questions before signing.

1. What services are included?

Ask your agent to explain what they'll do for you during the homebuying process.

2. How much is the brokerage compensation?

Make sure the amount or rate is clearly stated and that you understand how it's calculated.

3. When does compensation become due?

Ask which circumstances trigger payment and whether there are obligations if a transaction does not close.

4. Who might pay that compensation?

Discuss potential seller or listing-broker payments and what happens if the amount offered doesn't cover your contractual obligation.

5. Is the agreement exclusive?

Find out whether you can work with other agents and which properties or areas are covered.

6. When does the agreement expire?

Confirm the starting date, expiration date, and any renewal provisions.

7. How can the agreement be terminated?

Ask what happens if the relationship isn't the right fit.

You should feel comfortable asking every one of these questions.

And you should receive clear answers before signing.

13. What I Want First-Time Buyers to Understand

Buying your first home can feel overwhelming.

You may already be wondering whether you're financially ready, what you can afford, and whether you're making the right decision.

Then someone asks you to sign a contract.

I understand why you'd want to know exactly what it means.

My approach is to help buyers understand the process, ask questions, and make informed decisions.

I want to know what's important to you.

Is it having more space?

Being closer to work?

Finding a home with a backyard?

Understanding the difference between Manteca, Ripon, Lathrop, River Islands, and Tracy?

Before helping you find a home, I want to understand your priorities.

And before asking you to sign an agreement, I believe we should have a clear conversation about the services, compensation, and responsibilities involved.

You deserve to understand the relationship you're entering into.

Frequently Asked Questions

Do I need a buyer representation agreement before seeing a home in California?

If you're touring with an agent who is working as your buyer's representative, you should generally expect a written agreement before the showing. Applicable MLS rules require it before touring, and California regulations presume that obtaining the agreement before a buyer-agent showing is practicable.

Can I visit an open house without signing a buyer representation agreement?

Generally, yes. Visiting an open house on your own or speaking with the listing agent does not, by itself, require you to sign a buyer representation agreement.

Is buyer-agent commission always 2% or 3%?

No. There is no legally set standard commission percentage. Broker compensation is fully negotiable.

Does the seller have to pay my buyer's agent?

No. Seller-paid buyer-broker compensation can be negotiated, but the seller is not automatically required to provide it.

Can I negotiate the terms of a buyer representation agreement?

Yes. You can discuss compensation, duration, services, exclusivity, scope, and other permissible contract terms before signing.

Can I sign an agreement for just one property?

A property-specific or otherwise limited agreement may be possible if the buyer and brokerage agree and the arrangement meets applicable rules.

Does a buyer representation agreement last for six months?

For an individual buyer covered by California's term limitation, the agreement generally cannot exceed 90 calendar days. Certain business-entity buyers are excepted from that statutory maximum.

Can I work with multiple real estate agents?

That depends on whether you've signed an exclusive agreement and what its scope covers. Review any existing agreements before engaging another agent.

What happens if I change my mind about the agent?

Review the termination section and discuss your options with the broker. Depending on the agreement, you may need a written cancellation or release, and certain obligations may continue.

The Bottom Line

A buyer representation agreement shouldn't be something you sign simply because someone hands you a document.

It should be a clear understanding between you and the brokerage about the services being provided, the compensation involved, and your responsibilities.

If you're buying your first home, you deserve to know what you're agreeing to.

Ask questions.

Understand the terms.

And choose someone you feel comfortable working with.

If you're thinking about buying in Manteca, Ripon, Lathrop, River Islands, Tracy, or the surrounding Central Valley, I'm here to help you understand the process and explore your options.

There's no need to rush into a decision you don't understand.

How can I be of service?

Let's start with a conversation about your homebuying goals and what you're looking for in your next home.

Michelle Saporito
Your Central Valley Realtor
eXp Realty of Northern California, Inc.
DRE #02239654
Phone: 209-328-3417
Website: https://buycentralvalley.com

Helping families put down roots in the communities they love, one home, one story, one community at a time.

Sources and Further Reading

1. California Department of Real Estate: Consumer Alert on Buyer Representation. Explains buyer agreements, broker compensation, and the practice changes.

2. California Department of Real Estate: Buyer Representation Licensee Advisory. California requirements, representation obligations, and compensation practices.

3. California Department of Real Estate: 2026 Real Estate Law. Includes California Civil Code Section 1670.50 and the regulations implementing AB 2992.

4. California Code of Regulations: Sections 2906.1–2906.3. Defines the 90-day term, agreement timing, and scope of applicability.

5. National Association of REALTORS®: Consumer Guide to Written Buyer Agreements. Explains negotiable compensation, services, buyer obligations, and open-house exceptions.

6. National Association of REALTORS®: Written Buyer Agreements 101. Guidance on when agreements are required and the compensation terms they must include.

This article provides general educational information, not legal advice. Buyer representation agreements are binding contracts. Requirements and obligations depend on applicable law, brokerage practices, MLS rules, and the specific written agreement. Review your agreement carefully and consult a qualified California real estate attorney when legal guidance is needed.