Questions, Answers, Tips and More!

Common questions and answers for Homeowners



How the new commission rules affect Buyers and Sellers?

What has changed? 

Do sellers still have to pay a buyer’s agent? 

Will buyers have to pay their real estate agent? 

Do buyers have to sign an agreement with their agent?

Do buyers have to have an agent?


Coming January 2025

 

In addition to the nationwide settlement, the California Legislature recently passed Assembly Bill (AB) 2992, which was signed by the Governor on September 24, 2024.  Effective January 1, 2025, all buyers’ agents in California will be required to sign a buyer-broker representation agreement with their buyer clients as soon as practicable, but no later than the execution of the buyer’s offer to purchase real property. [Note that the timing in this legal requirement is different from the trade association practice, which requires a buyer-broker representation agreement before an agent tours a home with a buyer.]  

 

AB 2992 also will require the agreement to include the buyer’s agent’s compensation, the services to be rendered, when compensation is due, and the date when the agreement shall expire, provided that the expiration date shall not exceed three months from the date it was executed.

Once the buyer and buyer’s agent agree to compensation terms and sign the buyer-broker representation agreement, the buyer’s agent will know what services to provide and the buyer will know how much they need to pay for those services. Although the buyer will be responsible for compensating their agent, the buyer has several options available to them.