September 1, 2026 · Real Estate, Explained · Blake Sherwood
What Is a Buyer Agency Agreement? Buyer Representation, Explained
Facts last verified August 11, 2026.
A buyer agency agreement is a written contract between a home buyer and a real estate brokerage that defines the agent’s services and states exactly how much the agent will be paid. It creates a formal representation relationship: the agent owes you fiduciary duties — loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. Without it, an agent who shows you a home may legally be working for the seller, not for you.
How It Works in Massachusetts
Massachusetts has required a written agency disclosure for years under 254 CMR 2.00(13). That disclosure tells you who the agent represents. A buyer agency agreement goes further: it locks in the terms of your representation and the compensation the agent will earn.
On August 17, 2024, new requirements took effect as a result of the National Association of Realtors (NAR) settlement agreement. Two changes matter most for buyers:
Written agreement before touring. All MLS participants working with a buyer must enter into a written agreement before touring a home. In Massachusetts, MLS PIN — the dominant MLS serving Greater Boston and the North Shore — requires this agreement before an agent submits any showing request or accompanies a buyer to a listed property. Oral agreements do not satisfy Massachusetts agency disclosure obligations under 254 CMR 2.00(13).
Compensation must be spelled out. The written agreement must conspicuously disclose an objectively ascertainable amount or rate of compensation — a flat fee, a percentage, or an hourly rate. It cannot be left blank or open-ended, and it must include a statement that all fees are negotiable and not set by law.
Compensation is always negotiable. No law sets a fixed rate. Rates vary by agent, brokerage, and transaction.
MAR Standard Forms
The Massachusetts Association of REALTORS® updated its standard forms library following the NAR settlement. The current Exclusive Buyer Agency Agreement is MAR Form 714, updated to give buyers and agents more flexibility on scope of services, geographic area, duration, and compensation structure. A separate standalone buyer compensation disclosure form (Form 801) is also available for situations where a full agency agreement is not yet in place. Always confirm you are using the current version from the MassForms™ library, as form numbers are updated periodically.
If you attend an open house without a signed agreement, the listing agent there represents the seller. MAR developed an Unrepresented Buyer Disclosure form specifically for open houses and showings of a brokerage’s own listings, to inform unrepresented buyers and protect listing brokers from liability.
Exclusive vs. Non-Exclusive Agreements
Most buyer agency agreements in Massachusetts are exclusive: you agree to work with one agent for a set period and geographic area, and that agent earns their fee if you buy a home during that term — even if you find the property yourself. A non-exclusive agreement lets you work with multiple agents simultaneously, but it is less common.
Always check the term length. Agreements without a defined expiration date are not binding under Massachusetts law. A term of 60–90 days is typical for a focused search; longer terms are negotiable.
Do I Have to Sign a Buyer Agency Agreement Before Touring Homes?
Yes — if you are working with an agent who participates in MLS PIN, you must sign a written agreement before your first tour. This is a condition of the agent’s MLS membership, not something they can waive.
The agreement does not have to be a long-term exclusive contract. Short-form touring agreements can cover a single day, a single week, or a single property, and may include a small fee or no fee at all. If you want to keep your options open at the start, ask about a limited touring agreement before committing to a longer exclusive arrangement.
Can I Get Out of a Buyer Agency Agreement?
Often yes, but the path depends on what you signed. The cleanest exits:
- Mutual release. Most agents will agree to cancel in writing if the relationship is not working. Because agents work on commission, buyers typically do not owe any financial compensation when terminating — but review your specific agreement to confirm.
- Expiration. The simplest option is to let the agreement run out. Most are signed for 60–90 day or six-month periods.
- For cause. You can terminate on grounds of poor service, breach of confidentiality, or failure to meet fiduciary responsibilities.
One clause to read carefully: the protection period (sometimes called a holdover clause). If you buy a home your agent introduced to you within a defined window after the agreement ends, you may still owe compensation. Read the termination and protection-period language before you sign.
Who Pays the Buyer’s Agent?
Under the post-NAR-settlement rules, buyer’s agent compensation is negotiated separately from the listing — it is no longer bundled into the MLS. Sellers are no longer required to advertise a buyer-agent contribution on the MLS, though they may still offer one as part of offer negotiations.
In practice, there are three common scenarios:
| Scenario | How it works |
|---|---|
| Seller offers a concession | Seller agrees at the offer stage to contribute a dollar amount or percentage toward the buyer’s agent fee, reducing the buyer’s out-of-pocket cost |
| Buyer pays directly | Buyer pays the agent’s fee from their own funds at closing, as set in the buyer agency agreement |
| Negotiated split | Buyer and seller split the fee as part of the offer negotiation |
Payments may come from the seller, the buyer, or a combination — this optionality is now addressed in the Purchase and Sale Agreement. If a seller offers nothing, your agreement governs what you owe.
A Worked Example
Say you are searching for a home in Beverly priced around $650,000. You sign a 90-day exclusive buyer agency agreement at a rate of 2.5% of the purchase price — an agreed fee of $16,250.
- If the seller offers a 2.5% concession: The seller’s proceeds cover your agent’s fee. You pay nothing extra at closing for representation.
- If the seller offers a 2% concession: The seller covers $13,000. Your agreement requires you to make up the $3,250 shortfall.
- If the seller offers nothing: You owe the full $16,250 to your agent at closing, separate from your down payment and other closing costs.
This is why reading the compensation clause carefully — and asking your agent to walk through each scenario — matters before you start touring homes.
What to Look for Before You Sign
Four things to check in any buyer agency agreement:
- Term and geography. How long does it run, and does it cover the whole state or just specific towns?
- Compensation amount. Is it a flat fee, a percentage, or hourly? What happens if the seller contributes less?
- Termination clause. Can you cancel with written notice? Is there a fee for early termination?
- Protection period. How long after the agreement ends can the agent still claim a fee on a home they introduced to you?
If any of these are vague or missing, ask for clarification in writing before you sign.
This is general information, not legal/tax advice. Consult a qualified attorney/CPA.
Last verified: 2026-08-11. NAR settlement rules and MAR form requirements are an evolving area — confirm current form numbers and any Board of Registration guidance updates with your brokerage’s compliance team before relying on specific form citations.
FAQ
What is a buyer agency agreement?
A buyer agency agreement is a written contract between a home buyer and a real estate brokerage that defines the agent’s services and sets the compensation the agent will earn. It creates a formal fiduciary relationship, meaning the agent is legally obligated to put your interests first.
Is a buyer agency agreement required by Massachusetts law?
Massachusetts law does not independently require a buyer to sign a full agency agreement before touring, but MLS PIN — the dominant MLS serving the North Shore and Greater Boston — requires agents to have a signed written agreement before showing any listed property. The practical result is that you will need to sign something before your first tour with a participating agent.
Can a seller still pay my buyer’s agent?
Yes. A seller can offer a concession as part of the offer negotiation to cover all or part of your agent’s fee. Sellers are no longer required to advertise this on the MLS, but it is still negotiated at the offer stage in many Massachusetts transactions.
What happens if I find a home on my own while under an exclusive buyer agency agreement?
Under most exclusive agreements, your agent is still entitled to their fee if you purchase a property during the agreement term — even one you found yourself. Read your agreement’s exclusivity language carefully, and ask your agent how this scenario is handled before you sign.
