Buying a home in 2026 can involve an important conversation before you even begin touring properties: how your real estate professional will represent you and how that professional will be compensated. Written buyer-agent agreements have become a more visible part of the homebuying process, while compensation information is handled differently than it was only a few years ago.
For buyers working with real estate professionals covered by National Association of REALTORS® Multiple Listing Service policies, a written buyer agreement generally must be entered into before touring a home, unless doing so would conflict with applicable state or federal law or regulation. At the same time, offers of compensation to buyer brokers may no longer be placed in participating Multiple Listing Services.
That does not mean buyer agents suddenly work for free, that sellers can never contribute toward buyer-agent compensation, or that every buyer must pay the same commission. Broker compensation remains negotiable. Understanding the agreement before signing it is therefore one of the most important practical steps a homebuyer can take.
City Law Guide provides general educational information and not individualized legal advice. Real estate agency, contracts, disclosures, commissions, and licensing rules can vary significantly by state, so buyers should review local requirements before signing a representation agreement.
What Changed About Buyer Representation and Commissions?
The most significant industry changes grew out of nationwide litigation over residential real estate commissions. Practice changes implemented in 2024 continue to shape transactions in 2026. NAR’s current MLS policy states that MLS participants working with a buyer must generally enter into a written agreement before touring a property.
The same framework prohibits offers of compensation from being displayed through the MLS. Instead of opening a listing and seeing an MLS field showing what a listing broker might offer a buyer’s broker, compensation arrangements may be discussed and negotiated separately from the MLS.
The changes are intended to make compensation conversations more explicit. They do not establish a government-set commission rate. In fact, current NAR policy specifically requires conspicuous disclosure that broker fees and commissions are not set by law and are fully negotiable.
A Written Buyer Agreement Now Matters Earlier
A buyer representation agreement explains the relationship between the buyer and the real estate professional. Depending on the form and local law, it can address the services the agent will provide, the length of the relationship, geographic or property limitations, termination rights, exclusivity, duties of the parties, and compensation.
Under current NAR MLS policy, the agreement must be in place before the agent tours a home with the buyer. The requirement applies to covered in-person and virtual touring situations, although local laws and specific circumstances can affect implementation.
This means buyers should not treat the agreement as paperwork to sign quickly in the car before entering the first property. It creates contractual obligations that deserve to be understood.
What Should the Compensation Section Say?
Current NAR policy requires the written agreement to specify and conspicuously disclose the amount or rate of compensation the broker will receive, or clearly explain how that amount will be determined. The compensation must be objectively ascertainable rather than open-ended.
For example, an agreement should not simply state that the broker will receive “whatever the seller offers.” Instead, compensation might be structured as a defined percentage, dollar amount, hourly fee, flat fee, or another clearly measurable arrangement permitted under applicable law.
The agreement must also provide that the broker cannot receive compensation from any source exceeding the amount or rate agreed to with the buyer. Buyers therefore have a clearer opportunity to discuss compensation before committing to the relationship.
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Read the Compensation Terms Before You Sign
Do not focus only on the percentage or dollar amount. Ask what services are included and when payment becomes due. Determine whether the agreement is exclusive, how long it lasts, whether it covers every property you may consider, and how either side can terminate the relationship.
You should also understand what happens if another party does not contribute enough compensation to satisfy the amount you agreed to pay your broker. Depending on the contract, you could be responsible for some or all of the difference.
For example, assume a buyer agrees in writing to a particular compensation amount. If the seller or listing side agrees to cover only part of that amount, the buyer’s contract may require the buyer to cover the remainder. The exact result depends on the agreement and applicable law, which is why buyers should ask about this scenario before signing.
Compensation Can Still Come From Different Sources
The disappearance of compensation offers from participating MLS systems does not prohibit compensation from being negotiated elsewhere. NAR states that offers of compensation can still occur outside the MLS. Depending on the transaction, compensation may come from the buyer, a seller, a listing broker, or another permitted source.
The important distinction is between what appears in the MLS and what parties may negotiate as part of the transaction. Homebuyers should therefore avoid assuming that a property has or does not have a compensation arrangement merely because no buyer-agent commission appears beside the listing online.
A Seller Can Still Contribute Toward Buyer-Agent Compensation
A seller can potentially agree to pay or contribute toward compensation for the professional representing the buyer. NAR policy requires appropriate disclosure and seller authorization when a listing participant or seller will make such a payment.
From a buyer’s perspective, this can become part of the economics of the purchase offer. A buyer and agent may want to know whether the seller is willing to contribute toward buyer-broker compensation before determining how the offer should be structured.
However, buyers should avoid assuming that every seller will make the same contribution or any contribution at all. Compensation is negotiable, and sellers have choices regarding what they are willing to pay.
The commission framework also differs from seller concessions. A seller concession may involve a seller agreeing to contribute toward certain buyer costs as permitted by the transaction and financing rules. Compensation paid to a buyer broker involves payment for brokerage services. The two concepts can affect the economics of a transaction differently and should not automatically be treated as interchangeable.
What Homebuyers Should Do Before Touring and Making an Offer
The newer compensation framework gives buyers a reason to discuss representation earlier in the process. Instead of waiting until an offer is ready, buyers should understand the proposed relationship before touring multiple homes with an agent.
That conversation can include what the agent will do, how communication will work, how properties will be located, whether the relationship is exclusive, how compensation will be determined, and what could cause the buyer to owe money directly.
Ask Specific Questions About Representation
Before signing, ask whether the agreement can be limited by time, property, geographic area, or type of service. Find out what happens if you discover a property independently, attend an open house, purchase directly from a builder, or decide to work with another professional.
Buyers should also discuss potential conflicts of interest. For example, circumstances can arise where the same brokerage has relationships with more than one party to a transaction. Agency and dual-agency laws vary by state, and additional consent or disclosure may be required.
Another useful question is how the agent handles situations where seller-paid compensation differs from the amount in the buyer agreement. Current REALTOR® ethical standards recognize that compensation may potentially come from another broker, the seller, landlord, or another party, while the buyer may be responsible for any remaining contractual amount.
Compare the Entire Agreement, Not Just the Commission
A lower stated fee does not necessarily make one representation arrangement better than another. Buyers should compare the actual services, experience, availability, negotiation assistance, market knowledge, contractual obligations, termination provisions, and compensation structure.
Likewise, buyers should not assume that a particular commission is “standard.” NAR’s 2026 rules continue to state that broker compensation is not set by law and is fully negotiable. Buyers are free to discuss compensation and services before choosing whom to hire.
If a term is unclear, ask for an explanation before signing. For significant contractual questions, particularly disputes involving payment obligations, exclusivity, termination, agency, or alleged misrepresentation, consultation with a licensed real estate attorney in the relevant state may be appropriate.
Homebuyers can use the City Legal Guides to begin researching location-specific legal information, browse Legal Resources, or use the Directory when looking for local legal professionals.
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Because real estate professionals are also businesses operating under evolving contractual and regulatory requirements, readers may find 2026 State Privacy and AI Laws: What Small Businesses Need to Know useful for a broader look at how modern regulation affects business operations.
For authoritative information about the current compensation framework, review the National Association of REALTORS® guidance on written buyer agreements. Its guidance explains the required compensation disclosures, negotiability of broker fees, and written-agreement requirements that apply to participating professionals.
The practical takeaway for homebuyers in 2026 is straightforward: know what you are signing before you begin touring properties. Understand what services your representative will provide, exactly how compensation is calculated, who may pay it, and whether you could owe any remaining amount yourself.
The real estate commission system has changed, but buyers still have choices. Compensation can be negotiated, representation terms can be discussed before the relationship begins, and seller participation in buyer-agent compensation remains possible outside the MLS framework. A careful review at the beginning of the home search can prevent confusion when it is time to submit an offer and close on a property.