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Buyer-Broker Agreement Explained

Understanding the Buyer Broker Exclusive Agreement

When you choose an agent to help you buy a home, you’ll sign a Buyer Broker Exclusive Agreement. This document makes your working relationship official. It confirms that your agent is working for you and only you, protecting your interests, guiding you through the process, and helping you make confident decisions.

It’s similar to how a seller signs a listing agreement with their agent. It simply defines your agent’s role, the services they provide, how long you’ll be working together, and how they’re compensated — all for transparency and clarity.

How Commissions Fit In (and Why It’s Highly Unlikely You’ll Pay One)

In the past, when a home was listed for sale, the Multiple Listing Service (MLS) — the database agents use to share listings — showed the commission the seller was offering to pay the buyer’s agent. In August of 2024, the US Department of Justice decided that made fees look fixed, so that information can no longer be displayed.

Now that same information is just discussed directly between the buyer, the seller, and their agents during the offer process. But here’s the key point: nothing about who usually pays has really changed.

Click to view the part of the Buyer Broker Agreement that talks about commissions

Sellers still pay the buyer’s agent in nearly every home sale, because not doing so would severely reduce the odds of selling their home. I believe buyers shouldn’t have to add another fee on top of their down payment and closing costs, and to this day, I have never asked a buyer client to pay the broker fee.

The FSBO exception: In some rare cases — such as for-sale-by-owner (FSBO) homes where the seller isn’t offering a full buyer-agent fee — the buyer might be asked to cover part of the difference. Even then, most FSBO sellers still offer compensation to attract buyers, and the vast majority of homes on the market are listed through agents who include the buyer’s agent fee in the sale.

The Bottom Line

The Buyer Broker Exclusive Agreement doesn’t change how home buying works — it just makes your agent’s loyalty and compensation clear up front. You get full representation, transparency, and peace of mind knowing exactly how your agent is working for you.