Buyer Representation & Agreements
The Dangerous Provisions in Buyer-Broker Agreements
By Dean L. Johnson, Attorney & Real Estate Broker | Sonoma Lawyers Realty
The NAR Settlement: A Long-Overdue Correction
For decades, the National Association of Realtors (NAR) operated a price-fixing scheme across America that locked in 5–6% agent commissions, while agent commissions in comparable countries average 1–2%. In 2024, following years of litigation, NAR agreed to a landmark settlement. Under the new rules, agent compensation must be negotiated openly and buyers must now sign written agreements with their agents. This is genuine progress.
But the new rules create real risk because the buyer agreements mandated by these reforms were drafted by the real estate industry to protect brokers, not buyers.
When Is a Buyer-Broker Agreement Required?
If you are just beginning the house-hunting process, it is important to know that under the new NAR rules a written buyer-broker agreement is not required when:
- Attending an open house
- Asking a listing agent to show you their listing
For those who are new to the area, I suggest you attend some open houses and call a few listing agents to see their properties. This will give you useful insights into the local real estate market and allow you to meet some agents.
The listing agent's name is included in every listing on Redfin, Zillow, and similar platforms. If you want to see a house, call the listing agent and ask them to show it to you. Most listing agents will gladly do so — they want to sell their listing and earn a commission, and they may believe they can persuade you to hire them as your buyer's agent.
When Representation Is Required and Why the Standard Agreement Is Dangerous
Once you decide to hire an agent, a written agreement is required. In California, that typically means the California Association of Realtors (CAR) Form BRBC — the Buyer Representation and Broker Compensation Agreement, Revised 6/25.
Here's the problem: the BRBC was drafted by the California Association of Realtors to protect brokers, not buyers. Sign it without modification, and you may find yourself locked into an exclusive relationship with limited exit rights and financial obligations that extend long after the relationship ends.
Here Is How to Protect Yourself — the Critical Modifications You Must Make to Form BRBC
The following changes to the BRBC are essential. Each is identified by the specific paragraph in the BRBC that must be modified.
Paragraph 2A(2) — Type of Representation
This paragraph presents two options: Non-exclusive or Exclusive. The default choice is Non-Exclusive.
Exclusive representation means the broker can claim compensation if you purchase any property during the agreement period — even properties they never showed you, never discussed with you, and never knew you were considering. You become obligated to pay simply because you signed their form.
Non-exclusive representation ties compensation to actual broker involvement with specific properties where the broker actually earns their fee.
What to Do: Never check the box and agree to Exclusive Representation. Always leave the box empty, which means Non-exclusive.
Paragraph 2E(1) — Amount of Compensation
This is one of the most consequential provisions in the entire agreement — and the one most buyers focus on least. Paragraph 2E(1) is where you specify how much you are agreeing to pay your broker.
The BRBC allows compensation to be stated either as a fixed dollar amount or as a percentage of the purchase price. Most agents will recommend a percentage, which is fine if it is reasonable.
What percentage is reasonable? The current national average buyer's agent commission is approximately 2.4–2.5%, according to Redfin data covering Q3 2025. That figure has remained stubbornly close to pre-settlement levels despite the NAR reforms — evidence that the industry has not yet adjusted to competitive market forces the way it should.
As a practical guide for Sonoma County buyers:
- 2.0–2.5% represents the current market ceiling — what most brokers charge and what most sellers are still offering. Accepting this rate means accepting the old, pre-reform status quo.
- 1.5–2.0% is a reasonable middle range for a full-service buyer's agent with genuine market expertise, negotiation skill, and legal competency.
- 1% is what Sonoma Lawyers Realty charges — and what we believe buyer representation should cost when delivered by an attorney-broker who adds real legal value to the transaction.
In most other developed countries — the United Kingdom, Australia, the Netherlands — total agent commissions on a real estate transaction run 1–2%, covering both sides. The American norm of paying 2.5% to a buyer's agent alone, on top of a separate seller's agent commission of 2.5–3.0%, is an artifact of the price-fixing scheme the NAR settlement was supposed to correct.
What to Do: In Paragraph 2E(1), write a specific percentage — not a dollar amount. We recommend no more than 2.0–2.5% at the high end, and encourage you to negotiate for less. If you are working with Sonoma Lawyers Realty, your rate is 1%.
Paragraph 2E(3) — Continued Right to Payment for Broker-Involved Properties
Paragraph 2E(3) establishes a window after the agreement ends during which the broker can still claim compensation on properties they showed you. This provision follows you like a shadow. Change brokers, and you may still owe money to the old one. Find a better agent, and the previous agent's claim doesn't disappear.
You need to eliminate the Continuation Period entirely.
What to Do: Write "0" (zero) in the blank. Your obligation ends when the relationship ends. Period.
Paragraph 2F — Cancellation Rights and Notice
This paragraph governs your right to cancel the agreement. For a non-exclusive arrangement, the cancellation is effective upon receipt unless a longer period is specified.
What to Do: Use the default option and do NOT specify a longer period. This means that when you decide to end the relationship, it ends immediately.
Paragraph 15 — Exclusive Representation
This paragraph governs the same issue as Paragraph 2A(2) above. Our recommendation is the same — do NOT agree to Exclusive Representation.
What to Do: Do NOT initial in the space for the Buyer's Initials.
The Bottom Line
Every contract is negotiable. Just because the California Association of Realtors printed it on a form does not mean you have to accept it as written.
If a broker refuses to modify unfavorable terms, that tells you everything you need to know about whose interests they prioritize. Thank them for their time and move on. Of course, at Sonoma Lawyers Realty we offer a fair and balanced BRBC that includes all of the above buyer recommendations.
You are about to make the largest purchase of your life. Do not let a preprinted form dictate the terms of that transaction. Demand protection. Accept nothing less.
Thinking About Buying a Home in Sonoma County?
Contact Sonoma Lawyers Realty for a consultation. We offer a fair and balanced buyer-broker agreement at 1% commission — and we represent you exclusively, never sellers.
Schedule a Free Consultation