Starting August 17, 2024, you must sign a buyer brokerage agreement before an agent can show you homes. This isn't optional—it's required by the NAR settlement and industry regulations.
Some buyers worry this is a trap. The reality is simpler: this agreement protects both you and your agent by making the relationship clear from the start. It defines who represents you, what services you'll receive, and how your agent gets paid.
Table of Contents
- What Is a Buyer Brokerage Agreement?
- Why the 2024 Changes Happened
- Key Terms Explained
- What the Agreement Protects
- Important Agreement Terms
- What to Discuss Before Signing
- Red Flags to Watch For
- Working Together Successfully
- If You Need to End the Agreement
- Summary: Key Takeaways
- Next Steps
What Is a Buyer Brokerage Agreement?
What it is: A written contract between you and a real estate brokerage that formalizes your working relationship. In Washington, this is governed by the Real Estate Brokerage Relationships Act (RCW 18.86).
What it establishes:
- The agent's commitment to represent your interests
- Services your agent will provide
- How and when your agent gets compensated
- Duration of your working relationship
- Geographic areas and property types covered
- Conditions for ending the agreement
Why it's required:
- Clarifies legal representation and fiduciary duties
- Prevents misunderstandings about compensation
- Protects both parties' interests
- Complies with Washington state law and 2024 NAR settlement
When you sign: Before your agent shows you any properties (required as of August 17, 2024)
Why the 2024 Changes Happened
Before August 2024:
- Buyer agent compensation shown in MLS listings
- Buyers assumed representation was "free" (paid by sellers)
- Compensation discussed only after buyers were working with agents
- Unclear agreements led to disputes
After August 2024 NAR Settlement:
- Compensation NOT shown in MLS
- Written agreement required BEFORE property tours
- Compensation discussed and agreed upon upfront
- Both parties understand relationship from day one
What this means for you:
- You know exactly what you're agreeing to before starting
- Your agent's commitment is formalized
- Compensation is transparent and negotiable
- You have legal protections if issues arise
Key Terms Explained
Duration: How Long the Agreement Lasts
Typical in Seattle: 90-180 days (3-6 months)
Why this timeframe:
- Average home search in Seattle: 3-6 months
- Allows time to see properties, make offers, negotiate
- Covers typical contract-to-close period (30-45 days)
- Avoids frequent renewals that waste time
What it means:
- Your agent commits to representing you for this period
- You commit to working exclusively with this agent
- Provides stability during the search
Shorter periods (30-60 days):
- May work if you're ready to buy immediately
- Requires renewal if you don't find a home quickly
- Creates administrative burden
Longer periods (6+ months):
- Common when searches take longer
- Provides continuity if you're selective
- Typical for buyers with specific requirements
Geographic Area
Typical: King County, or Greater Seattle Area (King, Snohomish, Pierce counties)
Why this matters:
- Defines where your agent represents you
- Agents specialize in specific areas
- Ensures your agent knows the local market
Property Types
Typical: All residential property types (single-family, condos, townhomes, new construction)
Why this is included:
- Different property types require different expertise
- Clarifies scope of representation
Compensation: How Your Agent Gets Paid
Typical in Seattle: 2.5-3% of purchase price
Three ways this works:
Option 1: Seller pays (most common)
- Seller agrees to compensate your agent
- Negotiated as part of your purchase offer
- No out-of-pocket cost to you
- Still standard in most Seattle transactions
Option 2: Buyer pays
- You pay your agent directly at closing
- Happens when seller won't offer compensation
- More common with FSBOs or some new construction
Option 3: Hybrid
- Seller pays partial amount
- You cover any difference
- Example: Seller pays 2%, you pay 0.5%
Real-world example:
- Purchase price: $825,000
- Agreed compensation: 2.5% = $20,625
- Most likely: Seller pays this amount
- Your cost: $0 (in most cases)
Important: In the majority of Seattle transactions, sellers still offer buyer agent compensation to attract more buyers. Your agreement specifies the amount, but sellers typically pay it.
What the Agreement Protects
For You (The Buyer)
Clear service expectations:
- Property searches and showing coordination
- Offer preparation and negotiation
- Contract management through closing
Fiduciary duties:
- Agent must put your interests first
- Confidentiality of your information
- Disclosure of material facts
- Reasonable care and diligence
Compensation clarity:
- Know upfront what you might owe
- No surprise bills at closing
- Clear terms about who pays what
Legal recourse:
- Written agreement provides protection
- Clear terms if disputes arise
For Your Agent
Time and expertise commitment:
- Agents invest significant time in buyer clients
- Agreement ensures compensation for this work
Exclusive representation:
- Prevents buyers from using multiple agents
- Allows agent to invest fully in your search
Professional liability:
- Clear scope of services
- Defined responsibilities
Important Agreement Terms
Exclusivity
What it means: You work only with this agent/brokerage during the agreement period.
Why it exists: Agents invest substantial time in each client. This prevents buyers from "shopping" multiple agents simultaneously.
What you can still do:
- Look at online listings yourself
- Attend open houses
- Research neighborhoods
- Your agent will help with any properties you find
Termination Conditions
Typical terms:
- Agreement ends on specified date
- Either party can terminate with written notice (often 30 days)
- Automatic termination if you purchase a home
- Mutual agreement to end early
Most agreements include reasonable termination provisions. If the relationship isn't working, professional agents will work with you to find a solution.
Protection Period
What it is: After termination, your agent may be entitled to commission if you buy a property they showed you.
Typical period: 30-90 days after agreement ends
Why it exists: Prevents buyers from terminating just before closing to avoid paying commission
Fair practice: Usually only applies to properties your agent specifically showed you
What to Discuss Before Signing
Have an Open Conversation About:
Timeline and expectations:
- How long do you expect your search to take?
- How often will you communicate?
- What's your ideal response time?
Compensation structure:
- What is the agreed rate?
- What happens if seller won't pay?
- Are there circumstances where you'd owe more?
Working style:
- How will your agent send you listings?
- How quickly can showings be scheduled?
- What's the process for making offers?
Market conditions:
- What's realistic in current market?
- How competitive is your price range?
Understanding the Terms
Everything in the agreement can be discussed. However:
Standard terms exist for good reasons:
- Duration reflects typical home search timeline
- Compensation rates reflect market standards
- Exclusivity protects the agent's investment in you
Reasonable discussions:
- Clarifying vague language
- Understanding specific terms
- Discussing compensation scenarios
- Confirming termination conditions
Unreasonable requests:
- Extremely short durations that don't match search reality
- Trying to avoid any commitment while expecting full service
- Demanding services beyond normal scope
Red Flags to Watch For
In the Agreement
Automatic renewal without notice:
- Agreement should have clear end date
- Should not auto-renew without your consent
No termination provisions:
- Should have mutual termination option
- Should specify notice requirements
Vague compensation terms:
- Should state specific percentage or amount
- Should clarify who pays under what circumstances
Excessive protection periods:
- 30-90 days is standard
- 6+ months is excessive
Unusual requirements:
- Must use agent's preferred lender (not standard)
- Must use agent's inspector (not standard)
In Agent Behavior
Refusing to explain terms:
- Professional agents welcome questions
- Should explain everything clearly
Pressure to sign immediately:
- You should have time to read and understand
- Rushing is unprofessional
Unwilling to discuss any terms:
- Professional agents are confident in their value
- Standard terms can still be discussed
Working Together Successfully
After Signing, Your Agent Will:
- Set up property searches matching your criteria
- Schedule and attend showings
- Provide market analysis and guidance
- Prepare and submit offers
- Negotiate on your behalf
- Manage the transaction through closing
You Will:
- Communicate your needs and preferences
- Attend showings and provide feedback
- Make decisions about offers
- Provide necessary documentation
- Work exclusively with this agent
Together You'll:
- Find the right property
- Navigate negotiations
- Complete the purchase successfully
If You Need to End the Agreement
Most issues can be resolved through communication:
- Discuss concerns with your agent first
- Many problems are simple misunderstandings
- Professional agents want satisfied clients
If relationship isn't working:
- Review termination clause in agreement
- Provide written notice as specified
- Be professional and clear about reasons
- Most brokerages will work with you
Valid reasons for termination:
- Agent not responsive or communicative
- Agent not showing suitable properties
- Significant life changes affecting your purchase
- Working style mismatch
The agreement protects both parties, but professional agents understand that sometimes relationships don't work out.
Summary: Key Takeaways
- Signing a buyer brokerage agreement is required as of August 17, 2024—agents cannot show properties without one
- The agreement protects both you and your agent by clarifying the relationship
- Typical terms: 90-180 days duration, 2.5-3% compensation, exclusive representation
- In most Seattle transactions, sellers still pay buyer agent compensation
- Duration should match realistic home search timeline (3-6 months is typical)
- Agreement includes reasonable termination provisions
- Open communication with your agent prevents misunderstandings
Next Steps
- Have an initial consultation with your agent
- Discuss timeline, expectations, and compensation openly
- Read the agreement carefully before signing
- Ask questions about anything unclear
- Sign with confidence knowing both parties are protected
- Focus on finding your home with your agent's full support
Related articles:
This article provides general information about buyer brokerage agreements and should not be considered legal advice. Agreement terms vary by brokerage and are governed by Washington's Real Estate Brokerage Relationships Act (RCW 18.86). Discuss any concerns with your agent or consult an attorney for specific legal questions.