What Is a Seller-to-Buyer Agent Compensation Agreement?

A seller-to-buyer agent compensation agreement is a written contract that explains how a seller will pay a buyer’s real estate agent for bringing a qualified buyer. These agreements are increasingly common for FSBO sellers and those using a Flat Fee MLS service, where buyer-agent compensation is not included in the listing agreement.

For a broader overview of modern real estate fees and compensation rules, see our guide: Real Estate Fees Explained.

🔎 Why Seller-to-Buyer Agent Compensation Agreements Are Needed

Under the NAR settlement, MLS listings can no longer display offers of compensation to buyer agents. This means sellers who wish to pay a buyer’s agent must do so off-MLS through a written compensation agreement or by including the terms directly in the purchase offer.

These agreements provide clarity around:

  • How much the seller is offering (percentage or flat fee)
  • When compensation is earned (usually at closing)
  • Which party is paying the buyer’s agent
  • What the buyer’s agent must do to earn the fee

To see how compensation agreements work for both buyers and sellers, visit our guide: What Is a Compensation Agreement in Real Estate?

📄 How Regional Compensation Agreements Work

Most states use standard REALTOR® association forms that include checkbox options to designate:

  • Seller → Buyer’s Agent compensation
  • Buyer → Buyer’s Agent compensation

That means the same form is often used for:

  • Buyer paying their own agent, or
  • Seller choosing to compensate the buyer’s agent

Brokerless does not provide legal forms. However, your assigned listing Realtor may supply the standard regional form when appropriate, and many sellers receive the form directly from the buyer’s agent.

Learn how buyer compensation agreements work from the buyer side here: What Is a Buyer Agent Compensation Agreement?

🏡 Why FSBO & Flat Fee MLS Sellers Use These Agreements

If you list your home through a For Sale By Owner method or a Flat Fee MLS service, your listing agreement does not address buyer-agent compensation.

Since MLS platforms can no longer display buyer-agent compensation, sellers often use a seller-to-buyer-agent compensation agreement to:

  • Encourage buyer-agent cooperation
  • Stay compliant with post-NAR rules
  • Communicate compensation clearly and legally
  • Increase buyer traffic on MLS websites

For more details on who pays buyer agents today, see: Who Pays the Buyer’s Agent After the NAR Settlement?

📌 Common Examples of Seller-to-Buyer Agent Compensation

  • Traditional: Seller pays 2%–3% to buyer’s agent at closing
  • Flat fee: Seller offers a flat amount (e.g., $2,500) to buyer’s agent
  • Reduced fee: Seller offers 1% or a negotiated amount
  • No compensation: Direct buyers work without representation, and seller pays $0

To compare the cost of different listing methods, see our pricing: Flat Fee MLS Plans.

✅ Seller-to-Buyer Agent Compensation Agreement Checklist

  • Confirm the compensation amount (flat fee or percentage)
  • Ensure the form is a regional standard REALTOR® agreement – see What Is a REALTOR in Real Estate?
  • Select the correct checkbox for Seller → Buyer’s Agent
  • Verify the compensation is off-MLS for compliance
  • Attach the agreement to the offer when applicable
  • Coordinate with your assigned Realtor or buyer’s agent if needed
  • Check possible impacts on your closing costs

Learn how to sell your home without paying unnecessary fees: Sell Your Home Without Closing Fees.

❓ Seller-to-Buyer Agent Compensation Agreement FAQs

Do sellers have to pay the buyer’s agent?

No. Sellers are not required to offer compensation. It is optional and negotiated off-MLS.

Where do sellers get the compensation agreement form?

Brokerless does not provide the form, but your assigned Realtor may supply it. Many sellers receive it directly from the buyer’s agent.

Are these forms legally binding?

Yes. Regional REALTOR® association forms are standardized and widely accepted.

Does this affect my MLS listing?

This agreement is kept off-MLS to comply with NAR rules. Your MLS listing remains clean and compliant.

Does the listing agreement with my assigned Broker address buyer-agent commission after the NAR settlement?

No. The listing agreement used with your assigned Broker does not include buyer-agent compensation. Under post-NAR settlement rules, any compensation offered to a buyer’s agent must be handled off-MLS and documented through a separate agreement — typically the standard regional form provided by the buyer’s agent or, when appropriate, your assigned Realtor. For more details on how payment responsibilities work today, see Who Pays the Buyer’s Agent After the NAR Settlement?.

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For a complete overview of how all buyer and seller compensation structures work, see our full guide: Real Estate Fees Explained: Realtor Compensation Agreements .