Buyer’s Agency Agreements: What You Need to Know Before Signing

You’re ready to buy a home, but before you start touring properties, your agent hands you a contract—a buyer’s agency agreement. What does it mean, and should you sign it?

A buyer’s agency agreement (BAA) outlines the responsibilities of both the buyer and the real estate agent, ensuring transparency and protecting both parties throughout the homebuying process. Whether you’re looking for a condo in San Diego or a townhouse in Boston, understanding this agreement is crucial. This Redfin article covers everything you need to know about buyer’s agency agreements and how they impact your homebuying journey.

What is a buyer’s agency agreement

A buyer’s agency agreement is a contract that defines how a real estate agent will represent a homebuyer, ensuring they act in the buyer’s best interest rather than the seller’s. 

Following the National Association of Realtors (NAR) settlement, effective August 17, 2024, new rules now emphasize transparency in how real estate commissions are disclosed and negotiated. These agreements typically outline the agent’s responsibilities—such as assisting with the home search, negotiations, and closing process—while clarifying how they will be compensated if a purchase occurs. Terms can vary by brokerage and market but are usually negotiable, offering flexibility for both parties involved.

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Deciding between renting or buying your next home?

Compare the costs of renting vs buying and find a lender to secure your mortgage.

Key components of a buyer agency agreement

A typical buyer agency agreement includes the following essential elements:

1. Agent and buyer duties – The contract specifies the agent’s obligations, such as finding suitable properties, scheduling showings, negotiating offers, and guiding the buyer through the purchasing process. The buyer’s responsibilities, such as providing necessary financial information and communicating preferences clearly, are also outlined.
2. Exclusive vs. non-exclusive agreement – Some agreements require exclusivity, meaning the buyer cannot work with another agent during the contract period. Non-exclusive agreements allow buyers to work with multiple agents but may limit the level of commitment from each agent.
3. Duration of agreement – The contract will specify how long the agreement lasts, typically ranging from a few weeks to several months. If the buyer has not purchased a home by the expiration date, the agreement may be renewed or terminated.
4. Commission and compensation – The agreement outlines how the agent is compensated. In most cases, the seller’s proceeds cover the agent’s commission, but some agreements specify that the buyer may be responsible for certain fees if the seller does not offer a commission.
5. Cancellation policy – The contract should state how either party can terminate the agreement, including any penalties or required notice periods.
6. Scope of representation – The document clarifies what types of properties the agent will help the buyer find, including geographic areas and price ranges.

How Redfin’s buyer agreements work 

Redfin’s approach to buyer agreements is designed to be flexible and straightforward. Before the first home tour, Redfin requires clients to sign a simple fee agreement, which can be done online with one click. This agreement doesn’t obligate the client to use Redfin—it merely outlines the fee Redfin would charge if they represent the buyer. We think consumers should have a chance to get to know their agent before being asked to sign a contract to work exclusively with them.

At Redfin, clients are only required to sign a formal buyer’s agency agreement when submitting an offer (unless required earlier by local law). If the offer isn’t accepted, there’s no obligation to continue working with Redfin, and clients can cancel the agreement at any time.

Buyer agency agreements at other brokerages

At other brokerages, buyer agency agreements may come with different terms and conditions. Some agreements could require you to pay an agent for their time and services, even if you decide not to purchase a home. This might include covering costs related to home tours, research, or administrative work. 

Additionally, many brokerages now ask for exclusive buyer agency agreements to tour, which bind you to work with that agent for a specific period, limiting your ability to switch agents or avoid fees if you don’t proceed with a purchase. Always review the agreement carefully to understand your obligations before signing.

Do you have to sign a buyer’s agency agreement?

The new industry-wide rules require a written agreement that explains the agent’s fees before touring. Unless otherwise specified by state law, a buyer doesn’t need to sign an exclusive, binding agency agreement to tour a home.

Some agents at other brokerages require buyers to sign a full buyer agency agreement before touring, obligating them to work exclusively with that agent for a set period of time. Redfin does not.

Why signing a buyer’s agency agreement can benefit you

For homebuyers, signing a buyer’s agency agreement offers several advantages:

• Ensures dedicated representation – With a signed agreement, the agent is legally obligated to act in the buyer’s best interests, offering professional advice and negotiating effectively on their behalf.
• Clarifies expectations – The agreement clearly defines roles and responsibilities, preventing misunderstandings about the services the agent provides.
• Provides market expertise – A dedicated agent can offer valuable market insights, access to off-market listings, and help buyers navigate competitive housing conditions.
• Improves negotiation power – A buyer’s agent will advocate for their client’s financial interests, negotiating pricing and contract terms to secure the best possible deal.

What happens if you don’t sign a buyer agency agreement?

While you can work with an agent without signing a formal contract, doing so can lead to complications. For example, without an agreement, there may be misunderstandings about the agent’s obligations, and the agent may not prioritize you over clients who have signed agreements. Additionally, without a formal agreement, you won’t have clear terms regarding commission or the agent’s duties, which could lead to issues later in the process.

Can you negotiate the terms of a buyer’s agency agreement?

Yes, the terms of a buyer’s agency agreement are negotiable. Buyers should review the agreement carefully and discuss any concerns with their agent before signing. Common areas of negotiation include:

• Contract length – Buyers can request a shorter commitment period if they want flexibility.
• Commission terms – Buyers may negotiate agent compensation, especially in cases where the seller does not offer a full commission.
• Exclusivity clause – If buyers prefer working with multiple agents, they can request a non-exclusive agreement.

How to cancel a buyer’s agency agreement

If a buyer is unhappy with their agent’s performance or decides to work with another professional, they may need to cancel the agreement. The cancellation terms should be outlined in the contract. Typically, buyers must:

• Provide written notice to terminate the agreement.
• Adhere to any cancellation fees or obligations specified in the contract.
• Ensure the termination is formally acknowledged by the agent or brokerage.

Buyer agency agreement FAQs

1. Is Redfin requiring a buyer agency agreement to tour?

No. The new rules require Redfin to get your agreement on our fee before we tour a home with you. We show the fee on Redfin.com when scheduling a home tour. You can sign the fee agreement with one click. Unlike the forms used by other brokers, this agreement doesn’t obligate you to use Redfin; it exists only to set the maximum amount Redfin can charge to be your buyer’s agent.

2. Can I work with more than one real estate agent at a time?

It depends on the type of buyer agency agreement you sign. If you sign an exclusive right-to-represent agreement, you’re committing to working with just one agent. However, if you have a non-exclusive or open agreement, you can work with multiple agents and only pay the one who helps you purchase a home.

3. What happens if I find a property on my own?

It depends on the terms of your agency agreement. If you find a property on your own, you should still inform your agent, especially if you’re under an exclusive agreement. In some cases, your agent may still be entitled to the commission even if you found the home without their assistance. This is why it’s important to clarify how the agent will be compensated before signing the agreement.

4. What should I do if I’m unhappy with my agent after signing an agreement?

If you’re unhappy with your agent, many agreements will have a clause allowing you to terminate the contract under certain conditions. It’s important to review the termination terms before signing to ensure you can exit the agreement without penalties if the agent’s services are unsatisfactory. At Redfin, you can sign our agreement and cancel it later by emailing your agent that you wish to cancel.

5. Do I have to pay the agent if the deal falls through?

In many cases, the buyer does not owe the agent any commission if the deal falls through, provided you haven’t breached any terms of the agreement. However, it’s essential to review your contract for any specific clauses that might address this scenario.

6. Can I switch agents if I’m under contract with one?

You can switch agents, but only if your agreement allows it or if you’re able to terminate the current agreement. Switching agents while still under contract with one may lead to legal or financial issues, so it’s important to understand the termination and exclusivity clauses in your agreement.