Buyer-Broker Agreement Template | NAR Settlement Guide

Key Information

The NAR settlement approved in August 2024 requires MLS-participating brokers to have a written buyer representation agreement in place before showing MLS-listed homes to buyers. The agreement must specify the buyer's agent compensation — either a fixed amount, a percentage, or a range — and must be signed by the buyer. This requirement took effect August 17, 2024 for all MLS-participating brokers nationwide. BuildMyListing generates buyer consultation materials and presentation templates that explain the buyer-broker agreement requirement and help agents present it professionally to buyer clients.

Pricing: Starting $99/month

Time Required: 10 minutes to prepare buyer-broker consultation materials

The Problem

Since August 17, 2024, MLS-participating agents must have a signed buyer-broker agreement before showing MLS-listed homes. Many buyer clients are encountering this requirement for the first time — and some react with confusion or resistance. Agents need a clear, professional explanation of what the agreement covers, why it's required, and what it means for the buyer.

The Solution

BuildMyListing generates buyer consultation materials explaining the NAR settlement requirement: what a buyer-broker agreement covers, what compensation terms must be specified, what buyers are agreeing to, and what the agent's duties to the buyer are. Designed to make the signing conversation comfortable, not awkward.

Key Features

NAR Settlement Explainer for Buyers

A plain-English explanation of the NAR settlement's buyer-broker agreement requirement: why the rule changed (the Sitzer/Burnett commission lawsuit settlement, approved August 2024), what MLS-participating brokers are now required to do (have a written buyer agreement before touring MLS-listed homes), and what the agreement means for the buyer. Factual and neutral — not promotional.

Benefit: Buyers understand the requirement before being asked to sign

Compensation Disclosure Framework

The buyer-broker agreement must specify the buyer's agent's compensation — either a dollar amount, a percentage, or a specific range. BuildMyListing generates a compensation disclosure section explaining how compensation will be determined, how it may be offered by the seller (cooperative compensation), and what happens if the seller does not offer cooperative compensation.

Benefit: Clear compensation disclosure that meets the NAR settlement requirement

Agent Duties Summary

Generates a plain-English summary of the buyer's agent's fiduciary duties: loyalty (putting the buyer's interests first), disclosure (telling the buyer about known material facts), confidentiality (protecting the buyer's information), obedience (following lawful instructions), reasonable care, and accounting (handling the buyer's funds appropriately).

Benefit: Buyers understand what they're getting in exchange for signing

Buyer Questions FAQ Template

The most common buyer questions about the buyer-broker agreement — 'What if I find a home on my own?', 'What if the seller pays nothing to my agent?', 'Can I cancel the agreement?', 'Do I have to use you for every house?' — answered in plain language for the consultation.

Benefit: Anticipate and answer buyer objections before they become obstacles to signing

How It Works

Prepare for the Buyer Consultation

Enter your agent information, brokerage name, compensation structure (percent or dollar amount), agreement term (typical range: 30–90 days), and geographic scope (city, county, metro, statewide). BuildMyListing generates the full consultation materials package.

Present the Buyer-Broker Agreement in the Consultation

Use the BuildMyListing-generated materials to explain: what the agreement covers, what you are required to have before showing MLS-listed homes, what your compensation is, and what fiduciary duties you owe the buyer. The materials are designed to be presented verbally with leave-behind copy for the buyer.

Execute the Agreement and Begin Showing

Once the buyer has reviewed the materials and the buyer-broker agreement is signed, begin MLS-listed home tours. BuildMyListing documents the consultation date and agreement execution for your records.

Compliance Reference

Requirement	NAR Settlement Rule	Effective Date	Notes
Written agreement required	Yes — before touring MLS-listed homes	August 17, 2024	Applies to all MLS-participating brokers
Compensation must be specified	Yes — dollar amount, percent, or range	August 17, 2024	No 'to be determined' compensation
Buyer must sign	Yes — written and signed	August 17, 2024	Electronic signature acceptable
Agreement scope	MLS-listed properties covered	August 17, 2024	Non-MLS-listed properties may be handled differently — verify with state law
Cooperative compensation from sellers	Permitted but not required via MLS	August 17, 2024	Sellers can offer any compensation or none — compensation is negotiable
Consumer notice	MLS participants must provide specific disclosure language	August 17, 2024	Check your MLS's required disclosure language

Common Use Cases

First-Time Buyer — Explaining the New Requirement

Scenario: First-time buyer calls to schedule home tours. Agent needs to explain the buyer-broker agreement before confirming any showing of MLS-listed homes.

Process: Schedule a 30-minute buyer consultation before any showings. Use BuildMyListing materials to explain the NAR settlement requirement, compensation structure, and agent duties. Answer the buyer's common questions using the FAQ template. Execute the agreement before proceeding to MLS-listed home tours.

Compliance: NAR settlement requirement met — written agreement in place before MLS-listed home tours. Compensation disclosed with specificity as required.

Relocation Buyer — Remote Consultation

Scenario: Buyer relocating from another city contacts the agent via email. Needs to see homes during a 3-day visit next week.

Process: Schedule a video consultation before the visit. Send BuildMyListing's buyer-broker materials digitally for the buyer to review before the call. Execute the buyer-broker agreement electronically before the first in-person showing. Confirm the agreement scope covers the visit's geographic area.

Compliance: NAR settlement requirement met — written agreement executed before MLS-listed showings. Electronic execution valid.

Frequently Asked Questions

What is the NAR settlement's buyer-broker agreement requirement?

The National Association of Realtors settlement, approved in August 2024, requires MLS-participating brokers to have a written buyer representation agreement in place before showing MLS-listed homes to buyer clients. The agreement must: (1) be in writing and signed by the buyer, (2) specify the buyer's agent's compensation as a dollar amount, a percentage, or a specific range (not 'to be determined'), and (3) cover the MLS-listed properties to be shown. The requirement took effect August 17, 2024 for all MLS-participating brokers in the United States.

What happens if the seller doesn't offer cooperative compensation?

Under the NAR settlement rules, sellers are no longer required to offer cooperative compensation through the MLS. If a seller doesn't offer compensation to the buyer's agent, the compensation specified in the buyer-broker agreement still applies — the buyer may be responsible for paying the buyer's agent directly, or the parties may negotiate compensation as part of the offer. Agents should explain this to buyers clearly at the consultation so buyers understand the range of possible compensation outcomes before beginning the search.

Can a buyer cancel a buyer-broker agreement?

Buyer-broker agreement cancellation terms vary by state and by the specific agreement. Many state-form buyer agreements include a cancellation provision allowing either party to terminate with written notice within a specified period. Some agreements are binding for the full term unless both parties agree to cancel. The agreement should specify the cancellation terms. Consult a licensed real estate attorney for the specific cancellation rules in your state.

Does the buyer-broker agreement requirement apply to open houses?

The NAR settlement rules specify that the written agreement is required before touring MLS-listed homes. NAR has clarified that agents attending open houses in their buyer agent capacity should have a buyer agreement in place. However, the specific open house rule interpretation varies by MLS and state law. Check your local MLS rules and state real estate commission guidance for the current open house interpretation. Consult a licensed real estate attorney for questions about your specific obligations.

What must the buyer-broker agreement include?

At minimum, the buyer-broker agreement must include: (1) the scope of properties covered (geographic area and property types), (2) the term of the agreement (start and end dates), (3) the buyer's agent's compensation — specified as a dollar amount, a percentage, or a range (not open-ended), and (4) signatures from both the buyer and the agent or broker. Many state real estate associations have updated their standard buyer representation agreement forms to comply with the NAR settlement requirements. Use your state association's current form.

Does BuildMyListing provide a legally enforceable buyer-broker agreement form?

No. BuildMyListing generates buyer consultation materials — explainers, FAQ responses, and presentation documents — to help agents explain the buyer-broker agreement requirement professionally. BuildMyListing does not provide a legally enforceable buyer-broker agreement form. Use the buyer-broker agreement form provided by your state's real estate association or approved by your broker. Consult a licensed real estate attorney for questions about the legal requirements for buyer-broker agreements in your state.

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Buyer-Broker Agreement — What the NAR Settlement Requires