You've bought before, so a buyer representation agreement handed to you before your first showing probably looks familiar. It may even look identical to the last one you signed, but the rules changed in August 2024, and so did some of the clauses worth pushing back on. A few terms can lock you into paying a fee even after you cancel or when the seller's commission comes in short. Here's what to read more carefully this time.
TLDR:
Since August 2024, you must sign a buyer representation agreement before touring any home, in every state.
Most traditional agreements are exclusive right-to-represent, meaning you owe the fee on any home you buy during the term.
Watch the protection period: traditional agreements run 90 to 180 days after cancellation, and you may still owe a fee.
Compensation, duration, geographic scope, and exclusivity are all negotiable before you sign.
Homa's buyer agreement is non-exclusive with a 1% fee, a 30-day post-cancellation window, and no cancellation fee.
What Is a Buyer Representation Agreement
A buyer representation agreement is a contract between you and a real estate brokerage that formalizes who represents you and how they get paid. You've likely signed one before. What's changed since August 2024 is that signing one is now required before any licensed broker can show you a home, and the compensation terms are more explicit than they used to be. The agreement must name a specific dollar amount or percentage, not a vague range. That's the part worth rereading carefully.
Why Buyers Are Now Required to Sign Before Touring
As of August 2024, signing before touring a home is required before any licensed broker can show you a home, in every state, at every brokerage. This came out of the NAR settlement, which mandated formal buyer-agent agreements as part of broader changes to how compensation is disclosed and negotiated. The NAR's consumer guide confirms compensation must be a specific, objective amount, not an open-ended range. That's new, and it's the clause that most directly affects what you might owe.
Types of Buyer Representation Agreements
Not all buyer agreements are structured the same way. The type you sign determines how much flexibility you actually have.
Exclusive right-to-represent: The most common form. The brokerage earns its fee if you buy any home during the agreement term, regardless of how you found it.
Exclusive agency: Similar, but if you find a property entirely on your own without broker involvement, no fee is owed.
Non-exclusive: The agreement applies only to specific properties the broker helped you tour or pursue, leaving you free to work with other brokers on other homes.
Most traditional agreements are exclusive right-to-represent, the most restrictive version for buyers. Non-exclusive agreements are rarer but meaningfully friendlier to you. State-specific rules also matter. For example, buyer broker agreements in Florida have their own post-settlement requirements.
Key Terms Every Buyer Should Read Carefully
Every buyer agreement shares the same basic anatomy. Knowing what each clause actually does is the difference between signing confidently and finding out later you were committed to more than you expected.
Here are the five terms worth reading closely before you put pen to paper.
Duration: How long the agreement runs, commonly 3 to 12 months. Some brokerages push for longer terms, so ask upfront whether the length is negotiable.
Geographic scope: Some agreements cover a specific city or zip code; others cover any property you buy anywhere. Read this carefully if you're searching across multiple markets.
Compensation structure: What the broker gets paid and how it's calculated. See real estate agent commissions explained for how these numbers typically work. This should state a specific amount or percentage, not a vague range.
Fee trigger: What event actually causes the fee to be owed. Most agreements say you owe it when you close on a home the broker helped you find or tour.
Post-termination protection period: If you cancel and then buy a home the broker showed you, you may still owe their fee. This window can run anywhere from 30 days to over a year.
The compensation clause deserves the most scrutiny. It should spell out what happens if the seller offers a buyer's-agent commission, what happens if they don't, and whether you'd owe anything out of pocket either way.
How Agent Compensation Is Defined in the Agreement
The agreement must name a specific compensation amount, either a flat dollar figure or a percentage of the purchase price. That number is what your broker is entitled to earn.
In most transactions, the seller still offers a buyer's-agent commission to attract offers. When that covers your broker's fee, you owe nothing extra at closing. Where things get complicated is when the seller offers less than the agreed amount, or nothing at all, and negotiating agent fees upfront can reduce that risk. Your agreement likely requires you to cover the gap yourself.
Read the shortfall clause carefully. It should spell out exactly what you'd owe if the seller's commission comes in low, and whether you can walk away from that home without penalty.
What "Qualifying Cause" Means and Why It Matters
Qualifying cause is the legal standard used to decide which broker actually caused a sale to happen. If an agent can show their efforts set the transaction in motion, they may be entitled to a commission even if you cancelled the agreement before closing.
This comes up most in three situations:
You attend an open house without your agent and end up buying that property.
You switch brokers mid-search, and your original agent argues they were the one who found the home. Understanding the difference between a real estate attorney vs. Realtor can also clarify who you actually need on your team.
You revisit a property your first agent showed you and buy it through someone else later.
The post-termination protection clause exists to capture exactly this scenario in writing, so there's no ambiguity about whether your exposure continues after cancellation.
The Protection Period Clause
After a buyer agreement ends, the protection period is the window during which your former broker can still claim a commission if you close on a property they showed you while the agreement was active.
These windows vary widely. Traditional agreements commonly run 90 to 180 days, though some states allow protection periods of up to a year for properties the agent introduced you to.
The practical implication: keep a written record of every property you toured with a given broker. It's also worth understanding why buying without an agent can be a smart move for experienced buyers. Buy one of those homes through someone else later, and the original agent may still have a valid claim.
Red Flags to Watch For Before You Sign
A few patterns show up repeatedly in buyer agreements that deserve a second look before you sign.
Terms with no early-exit right, or agreements that technically allow cancellation but attach a fee to it
Geographic scope written as "any property" anywhere, instead of limited to homes the broker actually helped you find
Minimum fee clauses that kick in when a seller's offered commission falls short, leaving you personally on the hook for the gap
Compensation language that lets the broker adjust their fee without requiring your agreement
Protection periods longer than 60 days, especially when paired with broad definitions of which properties count as "introduced" by the agent
None of these are illegal, but each one shifts more risk onto you. A legitimate broker should be able to explain every clause plainly. If they can't, or won't, that's the clearest signal of all.
Are These Agreements Negotiable
Yes, most terms are negotiable before you sign. Brokers don't always volunteer this.
Compensation is the most important lever. You can ask for a lower rate, a fee cap, or a cap that only applies if the seller's commission falls short. Duration is negotiable too. Six months is common, but shorter terms of 30 to 90 days exist. Geographic scope can often be narrowed to specific properties or zip codes. Exclusivity is also up for discussion: a non-exclusive agreement limited to homes the broker actually shows you is a meaningfully different commitment than a blanket exclusive, and some buyers consider buying a house without a Realtor altogether.
The protection period is the clause buyers most often forget to push back on. Asking for 30 days instead of 90 or 180 is a reasonable request.
How to Cancel a Buyer Representation Agreement
Most buyer agreements can be cancelled, though your remaining obligations depend on how the agreement was written.
The standard procedure is straightforward: contact your broker by call, text, or email and request to cancel. A well-run brokerage will send a formal mutual release to sign, documenting the termination and giving both parties a clean break.
What varies is what happens after. Cancelling does not automatically eliminate the protection period. If you buy a home that broker showed you within their post-termination window, you may still owe the fee. Buyers who do switch to a rebate-friendly brokerage can benefit from commission rebates that save thousands at closing. Get the scope of that window confirmed in writing at cancellation, not merely at signing.
Some agreements also attach a cancellation fee or require written notice with a specified lead time. Read that clause before assuming walking away is cost-free.
The clearest situation where you owe nothing: you cancel, and you never purchase a property the broker showed you or pursued offers on.
How Homa's Buyer Brokerage Agreement Compares
Homa's Buyer Brokerage Agreement (BBA) is structured differently on almost every clause that matters.
Term | Traditional Agreement | Homa's BBA |
|---|---|---|
Exclusivity | Exclusive right-to-represent: any home you buy during the term triggers the fee | Non-exclusive: applies only to homes Homa helped you tour or pursue |
Agent fee | Typically 2-3% of purchase price | 1% of purchase price (min. $2,995) |
Post-cancellation protection period | 90-180 days (some states up to 1 year) | 30 days, limited to homes Homa was directly involved with |
Cancellation fee | Sometimes required; varies by agreement | No cancellation fee |
Seller commission shortfall | You personally cover the gap | You're told upfront and can walk away, or pay only the $2,995 minimum |
Buyer credit at closing | None | Seller commission above 1% credited back to you (e.g. ~$10,000 on a $500K home) |
The agreement is non-exclusive, applying only to homes Homa actually helped you tour or pursue an offer on. Buy something you found independently, and nothing is owed. The post-cancellation window is 30 days, well below the 90 to 180 days typical of traditional agreements, and only covers properties Homa was directly involved with. Cancel by call, text, or email with no fee.
The 6-month term is set by the standard state form so you skip monthly re-signing. It is not a lock-in.
On compensation: Homa's fee is 1% of the purchase price, or $2,995, whichever is greater. Homa requests the full 3% buyer's-agent commission from the seller, keeps its fee, and credits the remainder back to you at closing as the Homa Credit. On a $500,000 home with a 3% commission, that's an estimated $10,000 credit toward closing costs, prepaids, or a commission rebate mortgage rate buy-down. Final amounts depend on deal terms and your lender.
Final Thoughts on What Buyer Representation Agreements Mean for You
Buyer agreements are standard now, but standard doesn't mean take-it-or-leave-it. You can negotiate the term, the fee, the geographic scope, and the protection window. Going in informed means you sign with confidence instead of finding out what you agreed to after the fact.
FAQ
What should you watch out for in a buyer representation agreement if you've bought a home before?
Repeat buyers often focus on the wrong clause. The protection period is the one that catches experienced buyers off guard. Traditional agreements run 90 to 180 days after cancellation, meaning a home you toured with one broker can still trigger a commission claim if you buy it through someone else months later. Read the fee trigger, the shortfall clause (what you personally owe if the seller's commission comes in low), and the geographic scope before signing anything.
How does Homa's Buyer Brokerage Agreement compare to a traditional exclusive right-to-represent agreement?
Homa's BBA is non-exclusive, so it only applies to homes Homa actually helped you tour or pursue. Buy something you found on your own and nothing is owed. The post-cancellation protection window is 30 days, versus the 90 to 180 days common in traditional agreements. Homa's fee is 1% of the purchase price (or $2,995, whichever is greater), and any buyer's-agent commission above that comes back to you at closing as a credit. On a $500,000 home with a 3% commission, that's roughly $10,000 toward closing costs or a rate buy-down.
What happens if the seller doesn't offer a full buyer's-agent commission under my buyer agreement?
Your agreement likely requires you to cover the gap yourself. If the seller offers less than your broker's agreed fee, a shortfall clause in your contract makes you personally responsible for the difference. With Homa, if the seller offers nothing or too little, you're told upfront and can walk away from that specific home with no fees, or proceed and cover only the $2,995 minimum.
How negotiable is a buyer representation agreement, and which terms should you push on first?
Most terms are negotiable before you sign. For repeat buyers, the three highest-value asks are: a shorter protection period (30 days is reasonable), a non-exclusive structure tied to specific properties instead of a blanket "any home you buy," and a clear shortfall clause that caps what you'd owe out of pocket if the seller's commission falls short. Brokers rarely volunteer that these are on the table.
Can I switch from my current buyer's agent to Homa mid-search?
Yes, if your existing buyer agreement is non-exclusive, expired, or can be cancelled cleanly. If you're under an exclusive agreement, it needs to be cancelled or expire before Homa can work with you. If you're already under contract on a specific home, your original broker has likely set qualifying cause on that deal and Homa can't step in for it. Check your paperwork for exclusivity language and any rollover clauses before making the switch.
You've bought before, so a buyer representation agreement handed to you before your first showing probably looks familiar. It may even look identical to the last one you signed, but the rules changed in August 2024, and so did some of the clauses worth pushing back on. A few terms can lock you into paying a fee even after you cancel or when the seller's commission comes in short. Here's what to read more carefully this time.
TLDR:
Since August 2024, you must sign a buyer representation agreement before touring any home, in every state.
Most traditional agreements are exclusive right-to-represent, meaning you owe the fee on any home you buy during the term.
Watch the protection period: traditional agreements run 90 to 180 days after cancellation, and you may still owe a fee.
Compensation, duration, geographic scope, and exclusivity are all negotiable before you sign.
Homa's buyer agreement is non-exclusive with a 1% fee, a 30-day post-cancellation window, and no cancellation fee.
What Is a Buyer Representation Agreement
A buyer representation agreement is a contract between you and a real estate brokerage that formalizes who represents you and how they get paid. You've likely signed one before. What's changed since August 2024 is that signing one is now required before any licensed broker can show you a home, and the compensation terms are more explicit than they used to be. The agreement must name a specific dollar amount or percentage, not a vague range. That's the part worth rereading carefully.
Why Buyers Are Now Required to Sign Before Touring
As of August 2024, signing before touring a home is required before any licensed broker can show you a home, in every state, at every brokerage. This came out of the NAR settlement, which mandated formal buyer-agent agreements as part of broader changes to how compensation is disclosed and negotiated. The NAR's consumer guide confirms compensation must be a specific, objective amount, not an open-ended range. That's new, and it's the clause that most directly affects what you might owe.
Types of Buyer Representation Agreements
Not all buyer agreements are structured the same way. The type you sign determines how much flexibility you actually have.
Exclusive right-to-represent: The most common form. The brokerage earns its fee if you buy any home during the agreement term, regardless of how you found it.
Exclusive agency: Similar, but if you find a property entirely on your own without broker involvement, no fee is owed.
Non-exclusive: The agreement applies only to specific properties the broker helped you tour or pursue, leaving you free to work with other brokers on other homes.
Most traditional agreements are exclusive right-to-represent, the most restrictive version for buyers. Non-exclusive agreements are rarer but meaningfully friendlier to you. State-specific rules also matter. For example, buyer broker agreements in Florida have their own post-settlement requirements.
Key Terms Every Buyer Should Read Carefully
Every buyer agreement shares the same basic anatomy. Knowing what each clause actually does is the difference between signing confidently and finding out later you were committed to more than you expected.
Here are the five terms worth reading closely before you put pen to paper.
Duration: How long the agreement runs, commonly 3 to 12 months. Some brokerages push for longer terms, so ask upfront whether the length is negotiable.
Geographic scope: Some agreements cover a specific city or zip code; others cover any property you buy anywhere. Read this carefully if you're searching across multiple markets.
Compensation structure: What the broker gets paid and how it's calculated. See real estate agent commissions explained for how these numbers typically work. This should state a specific amount or percentage, not a vague range.
Fee trigger: What event actually causes the fee to be owed. Most agreements say you owe it when you close on a home the broker helped you find or tour.
Post-termination protection period: If you cancel and then buy a home the broker showed you, you may still owe their fee. This window can run anywhere from 30 days to over a year.
The compensation clause deserves the most scrutiny. It should spell out what happens if the seller offers a buyer's-agent commission, what happens if they don't, and whether you'd owe anything out of pocket either way.
How Agent Compensation Is Defined in the Agreement
The agreement must name a specific compensation amount, either a flat dollar figure or a percentage of the purchase price. That number is what your broker is entitled to earn.
In most transactions, the seller still offers a buyer's-agent commission to attract offers. When that covers your broker's fee, you owe nothing extra at closing. Where things get complicated is when the seller offers less than the agreed amount, or nothing at all, and negotiating agent fees upfront can reduce that risk. Your agreement likely requires you to cover the gap yourself.
Read the shortfall clause carefully. It should spell out exactly what you'd owe if the seller's commission comes in low, and whether you can walk away from that home without penalty.
What "Qualifying Cause" Means and Why It Matters
Qualifying cause is the legal standard used to decide which broker actually caused a sale to happen. If an agent can show their efforts set the transaction in motion, they may be entitled to a commission even if you cancelled the agreement before closing.
This comes up most in three situations:
You attend an open house without your agent and end up buying that property.
You switch brokers mid-search, and your original agent argues they were the one who found the home. Understanding the difference between a real estate attorney vs. Realtor can also clarify who you actually need on your team.
You revisit a property your first agent showed you and buy it through someone else later.
The post-termination protection clause exists to capture exactly this scenario in writing, so there's no ambiguity about whether your exposure continues after cancellation.
The Protection Period Clause
After a buyer agreement ends, the protection period is the window during which your former broker can still claim a commission if you close on a property they showed you while the agreement was active.
These windows vary widely. Traditional agreements commonly run 90 to 180 days, though some states allow protection periods of up to a year for properties the agent introduced you to.
The practical implication: keep a written record of every property you toured with a given broker. It's also worth understanding why buying without an agent can be a smart move for experienced buyers. Buy one of those homes through someone else later, and the original agent may still have a valid claim.
Red Flags to Watch For Before You Sign
A few patterns show up repeatedly in buyer agreements that deserve a second look before you sign.
Terms with no early-exit right, or agreements that technically allow cancellation but attach a fee to it
Geographic scope written as "any property" anywhere, instead of limited to homes the broker actually helped you find
Minimum fee clauses that kick in when a seller's offered commission falls short, leaving you personally on the hook for the gap
Compensation language that lets the broker adjust their fee without requiring your agreement
Protection periods longer than 60 days, especially when paired with broad definitions of which properties count as "introduced" by the agent
None of these are illegal, but each one shifts more risk onto you. A legitimate broker should be able to explain every clause plainly. If they can't, or won't, that's the clearest signal of all.
Are These Agreements Negotiable
Yes, most terms are negotiable before you sign. Brokers don't always volunteer this.
Compensation is the most important lever. You can ask for a lower rate, a fee cap, or a cap that only applies if the seller's commission falls short. Duration is negotiable too. Six months is common, but shorter terms of 30 to 90 days exist. Geographic scope can often be narrowed to specific properties or zip codes. Exclusivity is also up for discussion: a non-exclusive agreement limited to homes the broker actually shows you is a meaningfully different commitment than a blanket exclusive, and some buyers consider buying a house without a Realtor altogether.
The protection period is the clause buyers most often forget to push back on. Asking for 30 days instead of 90 or 180 is a reasonable request.
How to Cancel a Buyer Representation Agreement
Most buyer agreements can be cancelled, though your remaining obligations depend on how the agreement was written.
The standard procedure is straightforward: contact your broker by call, text, or email and request to cancel. A well-run brokerage will send a formal mutual release to sign, documenting the termination and giving both parties a clean break.
What varies is what happens after. Cancelling does not automatically eliminate the protection period. If you buy a home that broker showed you within their post-termination window, you may still owe the fee. Buyers who do switch to a rebate-friendly brokerage can benefit from commission rebates that save thousands at closing. Get the scope of that window confirmed in writing at cancellation, not merely at signing.
Some agreements also attach a cancellation fee or require written notice with a specified lead time. Read that clause before assuming walking away is cost-free.
The clearest situation where you owe nothing: you cancel, and you never purchase a property the broker showed you or pursued offers on.
How Homa's Buyer Brokerage Agreement Compares
Homa's Buyer Brokerage Agreement (BBA) is structured differently on almost every clause that matters.
Term | Traditional Agreement | Homa's BBA |
|---|---|---|
Exclusivity | Exclusive right-to-represent: any home you buy during the term triggers the fee | Non-exclusive: applies only to homes Homa helped you tour or pursue |
Agent fee | Typically 2-3% of purchase price | 1% of purchase price (min. $2,995) |
Post-cancellation protection period | 90-180 days (some states up to 1 year) | 30 days, limited to homes Homa was directly involved with |
Cancellation fee | Sometimes required; varies by agreement | No cancellation fee |
Seller commission shortfall | You personally cover the gap | You're told upfront and can walk away, or pay only the $2,995 minimum |
Buyer credit at closing | None | Seller commission above 1% credited back to you (e.g. ~$10,000 on a $500K home) |
The agreement is non-exclusive, applying only to homes Homa actually helped you tour or pursue an offer on. Buy something you found independently, and nothing is owed. The post-cancellation window is 30 days, well below the 90 to 180 days typical of traditional agreements, and only covers properties Homa was directly involved with. Cancel by call, text, or email with no fee.
The 6-month term is set by the standard state form so you skip monthly re-signing. It is not a lock-in.
On compensation: Homa's fee is 1% of the purchase price, or $2,995, whichever is greater. Homa requests the full 3% buyer's-agent commission from the seller, keeps its fee, and credits the remainder back to you at closing as the Homa Credit. On a $500,000 home with a 3% commission, that's an estimated $10,000 credit toward closing costs, prepaids, or a commission rebate mortgage rate buy-down. Final amounts depend on deal terms and your lender.
Final Thoughts on What Buyer Representation Agreements Mean for You
Buyer agreements are standard now, but standard doesn't mean take-it-or-leave-it. You can negotiate the term, the fee, the geographic scope, and the protection window. Going in informed means you sign with confidence instead of finding out what you agreed to after the fact.
FAQ
What should you watch out for in a buyer representation agreement if you've bought a home before?
Repeat buyers often focus on the wrong clause. The protection period is the one that catches experienced buyers off guard. Traditional agreements run 90 to 180 days after cancellation, meaning a home you toured with one broker can still trigger a commission claim if you buy it through someone else months later. Read the fee trigger, the shortfall clause (what you personally owe if the seller's commission comes in low), and the geographic scope before signing anything.
How does Homa's Buyer Brokerage Agreement compare to a traditional exclusive right-to-represent agreement?
Homa's BBA is non-exclusive, so it only applies to homes Homa actually helped you tour or pursue. Buy something you found on your own and nothing is owed. The post-cancellation protection window is 30 days, versus the 90 to 180 days common in traditional agreements. Homa's fee is 1% of the purchase price (or $2,995, whichever is greater), and any buyer's-agent commission above that comes back to you at closing as a credit. On a $500,000 home with a 3% commission, that's roughly $10,000 toward closing costs or a rate buy-down.
What happens if the seller doesn't offer a full buyer's-agent commission under my buyer agreement?
Your agreement likely requires you to cover the gap yourself. If the seller offers less than your broker's agreed fee, a shortfall clause in your contract makes you personally responsible for the difference. With Homa, if the seller offers nothing or too little, you're told upfront and can walk away from that specific home with no fees, or proceed and cover only the $2,995 minimum.
How negotiable is a buyer representation agreement, and which terms should you push on first?
Most terms are negotiable before you sign. For repeat buyers, the three highest-value asks are: a shorter protection period (30 days is reasonable), a non-exclusive structure tied to specific properties instead of a blanket "any home you buy," and a clear shortfall clause that caps what you'd owe out of pocket if the seller's commission falls short. Brokers rarely volunteer that these are on the table.
Can I switch from my current buyer's agent to Homa mid-search?
Yes, if your existing buyer agreement is non-exclusive, expired, or can be cancelled cleanly. If you're under an exclusive agreement, it needs to be cancelled or expire before Homa can work with you. If you're already under contract on a specific home, your original broker has likely set qualifying cause on that deal and Homa can't step in for it. Check your paperwork for exclusivity language and any rollover clauses before making the switch.
Find your home.
Get up to 2% back.
Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa
Find your home.
Get up to 2% back.
Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa
Find your home.
Get up to 2% back.
Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa
