California Buyer Agreements: Why You Sign Before Touring

If an agent has asked you to sign a buyer agreement before showing you a single house, you are not being singled out. Since August 17, 2024, the national settlement rules that cover most agents have required a written agreement with a buyer before touring a home together, in person or by live video. California law adds its own layer: every buyer's agent in the state needs a written agreement with specific terms, and it cannot last longer than three months.

The agreement spells out who represents you, what they will do, how much they are paid and when, and how either side can end it. Those terms are negotiable, including the length and the compensation. You do not need to sign anything to walk into an open house on your own or to ask an agent questions.

This is general information, not legal advice. For questions about a specific contract, talk with a California real estate attorney.

What changed, and why you are seeing this now

The NAR settlement practice changes (August 17, 2024). In settling commission lawsuits, the National Association of REALTORS® changed its MLS rules. MLS participants working with a buyer must sign a written agreement before touring a home with that buyer, including live virtual tours. The agreement must state the agent's compensation as a specific amount or rate, not something open-ended like "whatever the seller offers" or a range. It must say that broker commissions are not set by law and are fully negotiable, and the agent cannot accept more than the agreed amount from any source. Offers of compensation to buyer agents also came off the MLS, although sellers can still offer to pay them in other ways.

California's AB 2992 (in effect January 1, 2025). This law added Civil Code section 1670.50 and applies to all buyer's agents in California, whether or not they belong to a REALTOR® association. It requires:

A written agreement, signed "as soon as practicable," and no later than when you sign an offer to purchase.
Terms covering the broker's compensation, the services to be provided, when compensation is due, and how the contract can be terminated.
A maximum term of three months for individual buyers. The cap does not apply when the buyer is a corporation, LLC or partnership.
No automatic renewals. A renewal must be in writing, dated and signed by everyone, and can also last no more than three months.

An agreement that breaks the duration or renewal rules is void and unenforceable. Before you sign, the agent must also give you the state's agency relationship disclosure. Separately, Business and Professions Code section 10147.5 requires buyer agreements for homes of one to four units to carry a bold notice that compensation is not fixed by law and may be negotiable.

New in 2026: DRE rules on timing and length. Regulations from the California Department of Real Estate (DRE) took effect January 1, 2026. They define "three months" as 90 calendar days, starting the day after the last person signs, unless the agreement sets a later start date. A renewal must be signed before the original expires. The DRE also now presumes a buyer's agent can practicably get the agreement signed before showing you a property in person or virtually, which is why the request usually comes before the first tour.

What is in the California agreement

Most California agents use the California Association of REALTORS® Buyer Representation and Broker Compensation Agreement (C.A.R. Form BRBC). Whatever form you see, look for these pieces.

Term

The start and end dates. State law caps the term at 90 days for an individual buyer, but nothing requires it to be that long. A shorter term is perfectly legal.

What is covered

The type of property you are looking for, such as a single-family home or a condo, and often a location. A narrower description limits when compensation can be owed.

Exclusive or non-exclusive

C.A.R.'s BRBC defaults to non-exclusive unless the exclusive box is checked and you initial it separately.

Non-exclusive: the broker generally earns compensation only on a property they were involved with, for example by showing it to you, submitting your offer, or reviewing its disclosures with you. Simply emailing you listings does not count.
Exclusive: the broker can earn compensation on a qualifying purchase during the term even if you find the home yourself or buy through someone else.

If you sign non-exclusive agreements with several agents, you could owe more than one of them on the same home if each was involved. One agent at a time keeps this simple.

Compensation and how it is paid

The agreement states what you will owe the broker, as a percentage of the price, a flat fee or another fixed method, and when it is due, usually through escrow at closing. There is no standard rate, and the DRE tells consumers that a claimed "standard" commission is a red flag.

What if the seller offers to pay? You can ask the seller to pay some or all of your agent's compensation as part of your offer. Under the C.A.R. form, anything the seller pays is credited against what you owe, and your agent cannot collect more than the agreement states. If the seller pays part or says no, you remain responsible for the difference if you go forward, unless your agreement says otherwise. Ask what happens if you cannot cover the gap, and get the answer in writing. Using a VA loan? VA has its own rules on veterans paying buyer-broker fees, so involve your lender early; see our VA loans guide.

Who pays does not change who your agent works for. California's agency disclosure says a buyer's agent under your agreement is not the seller's agent, even if the seller pays the compensation.

Cancellation

On the C.A.R. form, either side can cancel by written notice without giving a reason, or both can agree to cancel. A one-sided cancellation of a non-exclusive agreement generally takes effect when the notice is received, while an exclusive agreement's takes effect 30 days after notice. Cancelling does not always end your obligation: if you later buy a home the agent was involved with, compensation may still be owed if the agent gave you a timely written list of those properties. Read this paragraph closely.

If the agreement includes binding arbitration, California law requires it to be titled "Arbitration of Disputes" with a notice you initial. Agreeing to arbitration is voluntary.

Touring-only agreements vs. full representation

You do not have to commit to a full search on day one. NAR's rules leave the length and scope of the agreement to you and the agent, within state law. C.A.R. also publishes a shorter Property Showing and Representation Agreement (PSRA). As C.A.R. described it at launch, it is non-exclusive only, lists up to three properties, lasts no more than 30 days, and can be cancelled at any time.

A touring-only agreement fits if you are early in your search or curious about one listing. Full representation fits once you are ready to write offers and need help with pricing, negotiation, inspections and escrow deadlines. Our step-by-step guide to buying a home in California walks through what happens after the offer.

For new construction, builder sales staff work for the builder, and each builder sets its own policy on recognizing a buyer's agent, so settle your agreement before the first model home visit. Our new construction page explains how we approach builder purchases.

Questions to ask before you sign

When does the term start and end, and can we make it shorter?
Is this exclusive or non-exclusive, and what happens if I find a home on my own?
What is the compensation, when is it due, and how does it change if a seller pays some or all of it?
Which services are included: showings, pricing analysis, disclosure review, negotiation, escrow coordination?
How do I cancel, when does it take effect, and would I still owe anything afterward?
Is there an arbitration clause, and is it optional?
What is your license number? You can confirm it with the DRE's online license lookup.

Red flags

Watch for these, several drawn from the DRE's consumer guidance:

Pressure to sign quickly, or no time to read the document
A claim that the rate is "standard" or set by law
Vague fees, or promises that are not in writing
Compensation stated as "whatever the seller pays" or as a range
A term longer than 90 days, or automatic renewal language
Dual agency that is not disclosed in writing
An agent you cannot find in the DRE license lookup

Keeping the term short

Ask for the shortest term you are comfortable with. If the relationship is working, a renewal takes a new signature before the current term ends. If you are not ready to start, you can agree to a later start date.

If you would rather read the agreement before meeting anyone, Remark Homes lets you review and e-sign the California buyer agreement online at our Get Started page. The online version uses one standard set of terms, shown before you sign, and nothing is binding unless you sign. For different terms, such as a shorter term, talk with one of our agents.

How Remark Homes can help

We are a veteran-owned brokerage in Tustin, and we would rather you understand your agreement than sign it quickly. Our agents will walk through each paragraph and answer the questions above before you commit. When you are ready, you can review and e-sign the agreement on our Get Started page, or read how we represent buyers on our home buying services page.

Frequently asked questions

Do I have to sign a buyer agreement to go to an open house?

No. Visiting an open house on your own or asking an agent about their services does not require one. An agent hosting an open house for the seller works for the seller.

How long can a California buyer representation agreement last?

For an individual buyer, no more than three months, which DRE regulations define as 90 calendar days starting the day after the last signature unless a later start date is agreed. It cannot renew automatically.

Is a buyer's agent commission negotiable in California?

Yes. State law requires buyer agreements for one-to-four-unit homes to say compensation is not fixed by law and may be negotiable. NAR's rules require a similar disclosure.

Can the seller still pay my agent?

Yes. You can ask in your offer, and the seller can accept or decline. Your agent still cannot receive more than your agreement states.

Can I cancel a buyer agreement?

Usually, by written notice, but timing and any remaining obligations depend on the agreement. On C.A.R.'s form, a one-sided cancellation of an exclusive agreement takes effect 30 days after notice.

California Buyer Agreements in 2026: Why You Sign Before Touring