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Why are Realtors required to have a Buyer Broker Agreement Signed before they can show you a home?

Writer: Wesley Stolsek
Wesley Stolsek
Sep 18, 2025
2 min read

Realtors are required to have a Buyer Broker Agreement signed before showing homes due to recent changes in real estate industry rules—specifically, a nationwide policy effective August 17, 2024. Here’s why this requirement exists:

Key Reasons for the Buyer Broker Agreement Requirement

  • Transparency & Clarity

    • The agreement ensures that buyers know exactly what services the REALTOR® will provide and what those services will cost.

    • It includes a clear, specific disclosure of the broker’s compensation, which is fully negotiable and not set by law.

  • Legal and Ethical Compliance

    • This requirement stems from a settlement involving the National Association of REALTORS® (NAR), which now mandates that REALTORS® have a written agreement with buyers before showing any properties.

    • The REALTOR® Code of Ethics obligates agents to act in their client’s best interests, and this agreement formalizes that relationship.

  • Protection for All Parties

    • The agreement sets out the terms of representation, helping avoid misunderstandings about compensation, services, or loyalty.

    • It clarifies that a REALTOR® cannot receive more than the agreed-upon compensation from any party, ensuring fairness.

  • Consumer Empowerment

    • Buyers are encouraged to review the agreement, understand all terms, and ask questions, giving them more control and understanding in the process.

What Does the Agreement Cover?

  • Identifies the buyer, broker, and agent

  • Specifies the term (start and end dates)

  • Outlines the broker’s duties (showing property, contract negotiation, advocacy)

  • Details the compensation arrangement (amount or rate, how and when payment occurs)

  • Includes equal housing opportunity and non-discrimination commitments

Summary

  • As of August 17, 2024, all REALTORS® must have this agreement signed before showing homes to ensure transparency, set clear expectations, and comply with new national policies.

  • This protects both buyers and REALTORS® by making the agency relationship and compensation terms clear and legally valid from the outset.

 
 
 

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Wes Stolsek, Realtor®​

(520) 404-9773

WesStolsek@gmail.com

7445 N Oracle Rd. # 201

Tucson, AZ  85704

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