Buyer Representation & Agreements
No BRBC Required: Open Houses and Seller-Agent Showings Under California's AB 2992
By Dean L. Johnson, Attorney & Real Estate Broker | Sonoma Lawyers Realty
Introduction
California's Assembly Bill 2992, effective January 1, 2025, has generated considerable confusion among real estate professionals and consumers alike. The new law requires buyer's agents to enter into a written Buyer Representation and Broker Compensation agreement — commonly called a "BRBC" — with their buyer clients. But a critical question has emerged in day-to-day practice: Is a BRBC required before a prospective buyer attends an open house, or before a seller's agent shows a home to an unrepresented buyer?
The short answer is no — and the law, along with the California Department of Real Estate's own implementing regulations, makes this clear.
The Crucial Distinction: Who Is Acting as the Buyer's Agent?
Effective January 1, 2025, AB 2992 mandates that all brokers representing real estate buyers must sign a written representation agreement with their clients. This law applies to all property types: residential, commercial, industrial, and multifamily. Specifically, the law requires that a buyer's agent and a buyer execute a buyer-broker representation agreement "as soon as practicable, but no later than the execution of the buyer's offer to purchase real property."
The entire framework of AB 2992 is built around one key concept: representation. The BRBC requirement is triggered only when a real estate broker is acting on behalf of a buyer. The DRE's implementing regulation, Cal. Code Regs., tit. 10, § 2908.3, is explicit on this point: buyer-broker representation agreements are only required "if real estate brokers are performing services for or on behalf of buyers of real property."
This distinction is fundamental. When a listing agent hosts an open house or shows a property to a prospective buyer, that agent represents the seller — not the buyer. No agency relationship with the buyer is created simply by unlocking the door.
Open Houses: No BRBC Required
When a seller's agent hosts an open house, members of the public are invited to tour the property. The listing agent's role in that setting is to market the property on behalf of their client — the seller.
The DRE's implementing regulations address this scenario directly and explicitly. Section 2908.2(c) states: "A seller's agent acting solely on behalf of a seller is not acting as a buyer's agent in showing a property to potential buyers, whether at an open house or any other showing."
The regulation could not be clearer. The seller's agent at an open house is not representing the buyer, and therefore the BRBC requirement does not apply. Prospective buyers may freely attend open houses, ask questions, and tour homes without any obligation to sign a buyer representation agreement.
Private Showings by the Seller's Agent: Still No BRBC Required
The same logic extends to a private showing where a prospective buyer — who has no buyer's agent — contacts the listing agent and asks to see the property. In this scenario, the listing agent is showing the home in their capacity as the seller's representative. They are not providing buyer representation services.
Section 2908.2(c) applies not only to open houses, but to any other showing conducted by a seller's agent acting solely on behalf of the seller. The statute and regulations impose no BRBC obligation on a listing agent simply because they are showing a property to someone who happens to be a prospective buyer.
Of course, if that same agent were later to shift roles and begin advising or representing that buyer — as a dual agent, which in itself would create some serious and well-documented problems that are beyond the scope of this article — the agency relationship would change, and the BRBC requirement would be triggered at that point.
A Word of Caution
Based on the foregoing, a BRBC is not required:
- For a prospective buyer to attend an open house hosted by the seller's agent;
- For a seller's listing agent to show the property to an unrepresented prospective buyer in any type of showing.
Some real estate agents may push back on this conclusion and insist that a prospective buyer must sign a BRBC before attending an open house or before a listing agent will show them a property. Buyers should understand that an agent who makes such demands is placing the agent's own compensation ahead of their contractual duties to the seller and their legal duties under the law — which is something that neither sellers nor buyers should accept.
Thinking about buying a home in Sonoma County? Contact Sonoma Lawyers Realty for a consultation at SonomaLawyersRealty.com.
Sonoma Lawyers Realty — Exclusive Buyer Representation at 1% Commission | sonomalawyersrealty.com