Real estate comes with its own vocabulary — and its own paperwork. This page explains, in plain English, the terms and agreements Ojai buyers and sellers run into most, starting with the one California now requires before a buyer tours a home with their agent.
Buyer–Broker Representation Agreement
What it is: A written agreement between you (the buyer) and your agent’s brokerage that spells out how your agent represents you: the services you’ll receive, how your agent is paid, and how the relationship can end.
Why you’re being asked to sign one: California law (Civil Code § 1670.50, AB 2992, effective January 1, 2025) requires a written buyer–broker agreement when an agent represents a buyer. It exists to make the relationship — and the money — clear up front.
When you sign: As early as practicable, and no later than when you sign an offer to purchase. In practice, expect to sign before your agent shows you a home, in person or virtually. You can still walk into an open house on your own without signing anything with the listing agent.
What it covers:
- Services — searches, showings, market analysis, offer preparation, negotiation, and coordination through closing
- Representation — whether it’s exclusive or nonexclusive, and the area or property type it covers
- Compensation — the amount or rate, when it’s due, and when you might owe it
- Ending it — expiration date, cancellation terms, and anything that survives after it ends
How your agent gets paid: Commissions aren’t set by law — they’re fully negotiable, and your agreement states the amount. A seller or listing broker may agree to cover some or all of it, but that’s never guaranteed, so talk through any possible shortfall you’d owe before making an offer. Your broker also can’t accept more than the amount agreed in your agreement.
How long it lasts: For an individual buyer, generally no more than 90 days under California’s 2026 regulations. It can’t auto-renew — any renewal has to be written, dated, and signed. (Different limits apply if the buyer is a corporation, LLC, or partnership.)
Before you sign, check: the services listed, exclusivity, the area covered, start and end dates, the fee and who may pay it, when it becomes payable, and how you can cancel. You should also receive California’s agency relationship disclosure before signing.
Prefer the one-page version? Download: Understanding the Buyer–Broker Representation Agreement (PDF)
Official sources:
- California Civil Code § 1670.50 (AB 2992): https://california.public.law/codes/civil_code_section_1670.50
- California DRE buyer representation advisory: https://www.dre.ca.gov/Licensees/Advisories/Advisory_2024_11_14_Changes_to_Buyer_Representation.html
- NAR Consumer Guide to Written Buyer Agreements: https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements
General information only — not a substitute for the signed agreement or legal advice. Questions about your specific form? Ask Jon, your broker, or your attorney.
