Buying a home
How Buyer Agent Commission Works in California Now
What changed in 2024, what a California buyer agreement covers, and how buyers and sellers can negotiate who pays.
What changed for buyers after the 2024 NAR settlement?
Two things changed on August 17, 2024. First, an agent who works with you as a buyer now needs a written agreement with you before you tour a home together, in person or by video. Second, offers to pay the buyer's agent can no longer be posted on the MLS.
NAR's consumer guide to written buyer agreements (undated, checked October 22, 2026) says the agreement sets out the agent's services and how the agent is paid. It also says compensation is negotiable and not set by law. Walking into an open house or asking an agent about their services does not require an agreement.
What did not change: a seller can still agree to help pay your agent. That conversation now happens in the offer or directly between the agents, not on the MLS.
This page is general information, not legal advice. For a question about a specific contract, talk with a real estate attorney.
What does a California buyer representation agreement have to include?
California added its own rule for buyer agreements, Civil Code section 1670.50, which took effect January 1, 2025. Under that section (checked October 22, 2026), the agreement has to cover at least four things:
- How much the agent or broker is paid
- The services the agent will provide
- When the payment is due
- How the agreement can end
The agreement has to be signed as soon as practicable, and no later than when you sign an offer. NAR's consumer guide adds that the pay must be clearly defined, such as a flat fee, a percentage, an hourly rate or $0. It cannot be open-ended.
Read the agreement before you sign it. If a line is unclear, ask what it means in plain words. A good agent will walk you through it without rushing you.
How long does a buyer agreement last in California?
For an individual buyer, Civil Code 1670.50 limits a buyer agreement to three months from the date it was made. The California Department of Real Estate's rule counts that as 90 calendar days, starting the day after the last person signs.
The agreement cannot renew on its own. A renewal has to be in writing, dated and signed by everyone, and it is also limited to three months. Agreements with a corporation, LLC or partnership are outside the three-month limit.
A shorter agreement is fine too. If you're only touring one weekend or one home, you can say so and set the agreement up that way.
Who pays the buyer's agent now?
There are three common ways it gets paid. They can also be combined.
- The seller pays some or all of it. The seller agrees, in the listing or in response to your offer, to pay your agent's fee at closing.
- You ask for a seller concession. Your offer asks the seller to put money toward your costs. Your loan program sets limits on how concessions can be used, so we check that before you write the offer.
- You pay it. You pay what your agreement says, usually at closing out of your own funds.
NAR's consumer guide says buyers can still request, negotiate for and receive payment from the seller or the listing agent, even with a signed buyer agreement. Your agreement sets the most your agent can receive. Your agent cannot collect more than that amount from any source.
How can a buyer negotiate the agent's commission?
Everything in a buyer agreement is open to discussion: the pay, the services and the length. Some questions to ask before you sign:
- What exactly do you do for that fee, from the first tour to closing?
- If the seller pays some of it, does what I owe go down by the same amount?
- What happens if I don't buy a home during the agreement?
- Can we set the agreement for a shorter time, or for one property?
- How do I end the agreement if it isn't working?
Put the answers in writing in the agreement itself. A promise that lives only in a conversation is hard to rely on later.
How should a seller handle buyer agent pay?
As a seller you decide whether to offer to pay toward a buyer's agent, and how much. You can say yes up front, wait to see what buyers ask for in their offers, or decide offer by offer.
The choice can change who shows up. Many buyers are short on cash after a down payment. An offer that asks you to cover their agent may still net you more than an offer that doesn't, once price and terms are counted. We lay each offer out by your bottom line so you compare real numbers.
Your listing agreement with your own agent is negotiable too. Our guide to what it costs to sell a house in Sacramento walks through every line of a seller's costs.
Can the buyer agent's fee be paid with the loan?
Sometimes, and it depends on the loan. Loan programs set rules on which costs a seller can pay for you and how much. Those rules decide whether a seller concession can go toward your agent's fee, and how large a concession can be.
Maggie B. Hopkins is a mortgage broker as well as a real estate broker. She can check the rules for the loans you're considering before you write the offer, so the offer asks for something your loan allows. Our closing costs page explains what else you'll pay at closing. You're always free to use any lender you like.
What should you watch for before you sign a buyer agreement?
- The pay is written as a clear number or rate. Not a range and not "to be decided."
- The end date fits your plans. Three months is the longest an individual's agreement can run.
- The cancellation terms make sense to you. NAR's guide notes that exit terms vary, so read them.
- It says what happens if you buy a home you found on your own or a new home straight from a builder.
- You received California's agency disclosure form. It explains who your agent works for. Ask for it if you haven't seen it.
If you're relocating, our buying before you move guide covers signing the agreement from a distance.
How do you get started with a buyer agreement?
Call Maggie at (916) 549-3131 or send us a note. We'll go over the agreement line by line before you tour, and we'll put the services and the pay in plain words. Rachel Dee Minyard, a REALTOR® on our team, can help with tours and the search.
Our free buyer guide lays out every step from first tour to keys. First-time buyers can start with our first-time buyer page.
Frequently Asked Questions
Is there a standard buyer agent commission in California?
No. Commissions are not set by law and are always negotiable. Each buyer agreement states its own amount, and you can discuss it before you sign.
Do I need to sign a buyer agreement to go to an open house?
No. NAR's consumer guide says visiting an open house or asking an agent about their services does not require one. You need one before you tour homes with an agent.
Can a seller still pay my agent?
Yes. A seller can agree to pay some or all of your agent's fee, or to give you a concession toward your costs. It can no longer be advertised on the MLS.
How long can a California buyer agreement last?
Up to three months for an individual buyer under Civil Code 1670.50. It cannot renew automatically. A renewal needs a new signed, dated writing.
What if the seller pays more than my agreement says?
Your agent cannot receive more than the amount in your agreement. Any extra the seller offers can go toward your other costs, within your loan's rules.
Can I cancel a buyer agreement?
It depends on the cancellation terms in your agreement, so read them before signing. Both sides can also agree in writing to change or end it.
Do I have to use your lending if you're my agent?
No. You can use any lender you like. We'd like the chance to quote your loan so you can compare.
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