The New Buyer’s Agent Agreement: What Long Island Buyers Must Sign Before Their First Showing
The call I get most often from first-time buyers these days starts the same way: they’ve found a house on Zillow, they want to see it, and they’re surprised when I tell them that before I can take them through the door, there’s a document we need to discuss. Not a big document. But an important one. One that, before August 17, 2024, didn’t exist in this form — and one that most buyers are signing without fully reading.
The NAR settlement changed the home-buying experience in ways that are still working themselves out across the industry. Here’s what Long Island buyers need to know before they schedule their first showing.
What the NAR Settlement Actually Changed for Buyers Starting August 2024
The Sitzer/Burnett case — the class-action lawsuit that culminated in a landmark settlement by the National Association of Realtors in March 2024 — was fundamentally about one thing: how buyer’s agents get paid, and who decides it.
For decades, the standard practice was for the seller’s listing agreement to include an offer of compensation to the buyer’s agent, distributed through the MLS. Buyers didn’t see it, didn’t negotiate it, and often didn’t know it existed. The settlement ended that system.
Beginning August 17, 2024, two things changed at the MLS level: sellers and their listing agents can no longer offer buyer’s agent compensation through MLS listings, and buyers must sign a written buyer representation agreement before a licensed agent shows them a property.
That second change is the one affecting buyers most directly. You now have to put the compensation structure in writing before you walk through the first door.
This isn’t a New York–specific rule. It’s a condition of NAR’s settlement that applies to any MLS participant — which covers the overwhelming majority of licensed agents in the country, including all active LIBOR participants on Long Island.
What Is a Buyer Agency Agreement and What Should You Negotiate?
A buyer agency agreement — sometimes called a buyer representation agreement or exclusive buyer’s agent agreement — is a contract between you and a real estate agent or brokerage. It formalizes the relationship, establishes the agent’s duties to you, and specifies compensation terms.
There are several things buyers should understand before signing.
Exclusivity vs. non-exclusivity. Some agreements designate one agent as your exclusive buyer’s representative for a defined period. Others are property-specific or non-exclusive. Know which you’re signing. An exclusive agreement with a 90-day term and no cancellation provision is meaningfully different from a single-property showing authorization.
Compensation terms. This is now the most critical clause. The agreement must specify what compensation the buyer’s agent expects, how it will be paid, and under what circumstances the buyer is responsible for it directly if the seller doesn’t offer a concession. Read this clause carefully. The amount should be stated as a specific percentage, flat fee, or range — not a vague “standard industry rate.”
Duration. Most agreements run 30–90 days. Anything longer than 90 days without a clear cancellation clause deserves scrutiny. You should be able to exit a relationship that isn’t working.
Geographic scope. The agreement should specify whether it covers a region, a set of towns, or specific property types. An overly broad agreement could bind you to an agent for any purchase anywhere in Nassau and Suffolk — not what most buyers intend.
Services included. What is the agent actually committing to? Showings, offer drafting, inspection coordination, closing attendance? The agreement should spell this out.
How Buyer Compensation Works Now That Sellers Aren’t Required to Offer It
This is the part that creates the most confusion, and understandably so.
Sellers are no longer required to offer buyer’s agent compensation through the MLS. That doesn’t mean sellers won’t — many still do, because offering a buyer’s agent concession remains a legitimate and often strategic tool for attracting buyers. It simply means it can no longer be listed in the MLS itself. It can appear in marketing remarks, be negotiated directly, or be addressed as a seller concession in the offer.
In practice on Long Island, here’s what the three most common scenarios look like.
In the first scenario, the seller offers compensation through negotiation. Many sellers, particularly in a balanced or buyer’s market, will offer buyer’s agent compensation either voluntarily or when asked. Your agent negotiates this as part of the offer, and you may owe nothing directly.
In the second scenario, the seller offers no compensation. Your agent’s fee comes from you. This is now a real possibility that buyers need to budget for. On a $700,000 home with a 2.5% buyer’s agent commission, that’s $17,500. Some buyers are asking for seller concessions to cover it.
In the third scenario, you negotiate a flat-fee arrangement. More buyers are negotiating fixed fees with buyer’s agents rather than percentage-based compensation. This is legal, and it protects you from commission inflation on higher-priced homes where the work involved doesn’t necessarily scale with the sale price.
The key takeaway: buyer’s agent compensation is now a negotiated item, not a default. That gives buyers more leverage than they’ve historically had — if they understand how to use it.
Red Flags to Watch for Before You Sign Any Buyer Representation Agreement
I’d be doing buyers a disservice if I didn’t name the clauses that should give you pause.
“Standard commission” language without a specific number. If the compensation clause reads “buyer’s agent shall receive customary commission” or similar, ask for a specific percentage or dollar amount before signing. Vague compensation terms are not in your interest.
Non-cancellation clauses or excessive penalties for early termination. A well-structured agreement should allow either party to terminate with reasonable notice if the relationship isn’t working. Agreements that lock you in for six months with no exit provision are one-sided.
Dual agency provisions buried in the agreement. Some agreements include language permitting the agent to represent both buyer and seller in a transaction. This is legal in New York with disclosure and consent, but it changes the nature of the representation significantly. Know what you’re agreeing to. For a fuller explanation of how dual agency affects your interests, see my earlier post on the dual agency disclosure.
Geographic scope that’s broader than your actual search. If you’re looking in Mount Sinai and Miller Place, an agreement that covers all of Suffolk County could constrain you unexpectedly.
No description of services. An agreement that specifies compensation without specifying deliverables is a one-sided document. Push for specificity.
How Smart Buyers Are Using the New Rules to Their Advantage
The shift created by the NAR settlement is fundamentally a transparency shift. Compensation that was previously invisible is now a negotiated term in a written contract — and that’s actually useful information for buyers.
Here’s what I’m seeing from buyers who are navigating this well.
They interview agents before signing anything. The buyer representation agreement is now the opening negotiation, not an afterthought. Buyers who approach it that way get better terms.
They ask directly: what do you charge, and what do you do for that fee? The willingness to answer that question clearly and specifically tells you a great deal about the agent.
They separate showings from representation. Some buyers are using showing-only arrangements with limited agreements for initial tours, then committing to fuller representation once they’ve identified a specific home or neighborhood. This is permitted and, for buyers early in the process, can be a smart approach.
They understand seller concessions. In many Long Island transactions, a strategically negotiated seller concession — framed as a contribution toward buyer’s closing costs — can effectively cover buyer’s agent compensation without changing the gross purchase price. Buyers who understand this are using it.
The new framework puts more information in front of buyers than the old one did. Sellers are still listing. Agents are still available. The difference now is that the terms of engagement are on the table — in writing — before the first key turns in the lock.
You Might Also Like
- The Dual Agency Disclosure You Signed Does Not Mean What You Think It Means
- The Appraisal Gap Addendum Is a Negotiating Instrument, Not a Buyer Concession
- What Closing Costs Actually Look Like on Long Island
Real estate markets change. For current listings and market data, contact Pawli at Maison Pawli.
This post is for informational purposes only and does not constitute legal or financial advice. Consult a licensed real estate attorney for guidance specific to your situation.
