What Is a Buyer Agent Compensation Agreement?

🔎 Why Buyer Agent Compensation Agreements Exist

Before 2024, buyer-agent commissions were typically displayed in the MLS. The NAR settlement ended that practice—commission offers can no longer appear in MLS listings. As a result, compensation must be determined and disclosed off-MLS through a signed agreement.

• How much the agent is paid (percentage, flat fee, hourly, retainer)
• Who pays the fee (buyer, seller, or both)
• Whether compensation depends on closing
• What services the agent is providing

These agreements bring transparency to a system that previously relied on preset MLS commission offers.

📄 What’s Included in a Buyer Agent Compensation Agreement?

While each state and brokerage has its own form, most agreements specify:

• Compensation amount — flat fee, hourly rate, percentage, or hybrid model
• Payment source — whether the buyer or seller pays the agent
• Services provided — showings, negotiations, offer writing, guidance
• Term of the agreement — start/end dates and renewal options
• Exclusivity — whether the buyer can work with multiple agents
• FSBO clause — how compensation works on unrepresented seller listings
• Protection period — whether the agent can claim a fee after the agreement ends

⏱ How Buyer Agent Compensation Works Today

• Buyers must sign a written agreement before seeing any home.
• Sellers may choose to offer compensation, but it must be communicated off-MLS.
• Commission is negotiable — from 0% to any mutually agreed amount.
• Agreements can be combined with a Buyer Representation Agreement or kept separate.

This flexibility gives buyers clarity and gives sellers control over whether and how they pay buyer agents.

📍 What This Means for FSBO and Flat Fee MLS Sellers

For FSBO sellers and Flat Fee MLS listings, buyer agent compensation is now completely optional. If a seller does want to offer compensation, it must be done via:

• A buyer-agent compensation addendum
• An email or written agreement sent off-MLS
• A negotiated fee included in the offer

Because MLSs cannot display compensation, these agreements give sellers full control over terms while remaining compliant.

🏆 How Brokerless Helps You Stay Compliant

• No required buyer-agent compensation — offer any amount or none at all
• Accurate listing data keeps your MLS posting compliant
• Quick edits when terms or compensation arrangements change
• Clear communication paths for coordinating with buyer agents

Want full exposure without paying a 6% commission? See our Flat Fee MLS plans.

✅ Buyer Agent Compensation Agreement Checklist

• Verify the exact compensation amount
• Confirm who pays (buyer, seller, or both)
• Review services provided by the agent
• Check exclusivity and agreement duration
• Clarify compensation on FSBO listings
• Understand any retainers, hourly fees, or minimum payments

Make sure all terms are in writing before you tour any homes to stay compliant with new NAR rules.

❓ Buyer Agent Compensation Agreement FAQs

Is a buyer compensation agreement required?

Yes. After the NAR settlement, buyers must sign a written agreement with their agent before touring any properties.

Does the seller have to pay the buyer’s agent?

No. Sellers are no longer required to offer buyer-agent compensation. Any offer must be made off-MLS and is fully optional.

Can a buyer pay their own agent?

Yes — buyers may pay via flat fees, hourly fees, retainers, bonuses, or traditional percentages.

Can the agreement be combined with a Buyer Representation Agreement?

Yes. Some brokerages use one combined form; others keep representation and compensation as separate contracts.

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