What changed in August 2024
As part of the practice changes that followed the national REALTOR settlement, starting August 17, 2024, agents who belong to a multiple listing service and are working with a buyer must have a written agreement with that buyer before touring a home, in person or virtually. Walking into an open house on your own, or asking an agent about their services, doesn’t require one.
The agreement must:
- State the agent’s compensation as a specific amount or rate, or a clear way to figure it, not an open-ended range
- Say plainly that broker fees and commissions are not set by law and are fully negotiable
- Bar the agent from collecting more from any source than the amount you agreed to
Offers of compensation to buyer agents also came out of the MLS. Sellers can still choose to pay a buyer’s agent or offer concessions, but it’s negotiated deal by deal, not posted on the listing.
Two documents, two different jobs
In New York you’ll likely see two pieces of paper early on, and they’re easy to mix up.
| Document | What it is | What it isn’t |
|---|---|---|
| New York State Disclosure Form for Buyer and Seller (Department of State) | A state-required form that explains the kinds of agency relationships: seller’s agent, buyer’s agent, broker’s agent, dual agent, and dual agent with designated sales agents. You sign to show you received it. | The form says right at the top: “This is not a contract.” |
| Buyer agreement (your agent’s brokerage) | The contract between you and the brokerage: services, term, compensation and how it ends. | A promise to buy any particular home, or a reason to skip your attorney. |
Our office’s procedures are public
New York requires every broker to post standardized operating procedures that say whether prospective buyers must show identification, sign an exclusive broker agreement, or get a mortgage preapproval. The REMAX Realty Group Standardized Operating Procedures are linked on our fair housing page. Every brokerage you talk to should be able to show you theirs.
The 10 questions
Is this exclusive or non-exclusive?
An exclusive agreement means that agent’s brokerage represents you for the homes and the period it covers. A non-exclusive agreement leaves you free to work with others. Ask which one you’re signing and what it means if you buy a home through someone else during the term.
How long does it last?
The term is negotiable. Some buyers start with a short agreement, even one covering a single tour, and extend it once they know the fit is right. Look for the start date, the end date, and any automatic renewal.
Which homes does it cover?
All homes, a certain area, a price range, a property type, or one specific address. The narrower it is, the more freedom you keep. The broader it is, the more the agent is committing to.
What exactly will you do for me?
Search, showings, pricing advice, offer strategy, negotiation, coordinating the inspection, appraisal and attorneys, and staying on it through closing. The agreement should describe the services. If something matters to you, ask for it in writing.
How much are you paid, and how is it figured?
A flat fee, a percentage of the price, or another clear formula. It has to be specific. Remember: it’s negotiable and not set by law. Ask when it’s owed, usually at closing, and whether anything is owed if you never buy.
What if the seller offers to pay you?
Sellers can still agree to cover some or all of your agent’s compensation, or give you a credit. Ask how a seller payment is applied against what you owe, and remember the agent can’t collect more in total than your agreement allows.
What if the seller offers less, or nothing?
Then any difference is yours to pay, ask the seller for in your offer, or handle another way you’ve agreed on. Talk this through before you fall for a house, so it’s part of your offer strategy and your budget, not a surprise.
Will you represent only me, or could you be a dual agent?
If you want a home listed by the same brokerage, dual agency can come up. In New York that requires informed written consent from both buyer and seller, and a dual agent can’t give either side undivided loyalty. Ask how the brokerage handles it, including whether it uses designated sales agents.
What if I find the home myself?
An open house, a for-sale-by-owner sign, a friend’s house. Ask whether those are covered and what your agent will do in each case. Exclusive agreements usually cover them.
How do I end it, and does anything survive?
Agreements can be changed by mutual consent and may set out conditions for ending early. Look for a protection or “tail” clause, which can mean you still owe compensation if, after the agreement ends, you buy a home the agent introduced to you. Ask how long that lasts.
Don’t sign anything you don’t understand
A buyer agreement is a contract. You can ask questions, ask for changes, and have a real estate attorney review it before you sign. A good agent will welcome that, not rush you past it.
Before you sign, confirm
- You received the New York State Disclosure Form for Buyer and Seller
- Exclusive or non-exclusive, in writing
- Start date, end date and any renewal
- Which homes, areas or price range it covers
- The services you’ll get
- Compensation as a specific amount or rate, and when it’s owed
- How seller-paid compensation or credits are handled
- Dual agency policy
- How to end it, and any protection period
- A signed copy for your records
Our own approach is simple: I’ll walk you through every line before you sign, and you’ll know what you’re agreeing to. More on how we work with buyers.
Questions buyers ask
Do I have to sign before seeing a house?
If an agent who’s an MLS participant is touring homes with you, yes, a written agreement comes first under the 2024 practice changes. Attending an open house on your own doesn’t require one.
Is the commission a set percentage?
No. Broker fees and commissions are not set by law and are fully negotiable. Your agreement states the specific amount or rate you and the brokerage agree on.
Is the state disclosure form a contract?
No. The New York State Disclosure Form for Buyer and Seller explains agency relationships and says on its face that it is not a contract. The buyer agreement is the contract.
Can I work with more than one agent?
With non-exclusive agreements, you may be able to. Read each agreement carefully so you don’t end up owing two agents for one house.
Should my attorney look at it?
You can always ask a real estate attorney to review a buyer agreement before you sign. In New York you’ll have an attorney for the purchase anyway, so it’s a natural first question for them.
Sources
- National Association of REALTORS, consumer guide to written buyer agreements: nar.realtor
- National Association of REALTORS, Written Buyer Agreements 101: nar.realtor
- NAR MLS Policy Statement 8.13, written buyer agreements required: nar.realtor
- NYS Department of State, New York State Disclosure Form for Buyer and Seller: dos.ny.gov
- NYS Department of State, real estate broker forms: dos.ny.gov
- NYS Department of State, standardized operating procedures: dos.ny.gov
- REMAX Realty Group Standardized Operating Procedures: jmansells.com/fair-housing
This guide is general information, not legal advice. Practices can vary with state and local law. Ask a real estate attorney about any agreement before you sign it.
Want to see our buyer agreement first?
Ask me for a copy before we tour anything. I’ll answer all ten of these questions, in writing.
Related: How we help buyers · First-time buyers · Fair housing · All guides