Buyer Agreements After the NAR Settlement: What KC Buyers Should Know

Do I need to sign a buyer agreement to tour homes in Kansas City?

Short answer: Generally, yes. Since August 17, 2024, an agent who is an MLS participant has to have a written agreement with you before touring a home with you, in person or by live video. The agreement has to say what the agent will be paid and that the amount is negotiable. That’s the whole idea: you know what you’re agreeing to before you walk through a door.

If this is new to you, it can feel like a lot of paperwork before you’ve even seen a house. It doesn’t have to be. Here’s what’s actually in these agreements and what we’d ask if we were in your shoes.

What changed, in plain English

The change comes from the National Association of REALTORS® settlement. Before it, plenty of buyers worked with an agent without anything in writing, and the agent’s pay often came from the seller’s side of the deal. Now the buyer and the agent write down their arrangement first.

According to the National Association of REALTORS®, a written buyer agreement has to:

• Spell out the amount or rate of compensation the agent will receive from any source, or how that amount will be determined.
• Make that compensation specific. It can’t be open-ended, like “whatever the seller is offering.”
• State that the agent can’t receive more compensation, from any source, than the amount or rate you agreed to.
• Say, in clear language, that broker commissions aren’t set by law and are fully negotiable.
• Include anything else your state’s law requires.

What’s up to you and your agent

Here’s the part that surprises people: much of the agreement isn’t dictated. NAR’s policy doesn’t set the term of the agreement (it could be one day, one house or longer), the services you get, or the type or amount of compensation. That’s between you and the agent.

Agreements can also address things like:

• How long the agreement lasts, and whether it runs until closing once you’re under contract.
• How either side can end it early.
• Whether there’s a “carryover period,” where the agent could be owed pay if you end the agreement and then buy within a set time.
• How conflicts get handled, for example if an agent represents more than one buyer on the same house.

Questions to ask before you sign anything

We’d ask these of any agent, including us:

1. How and how much will you be paid? Ask for a number or a percentage, in writing.
2. How long does this agreement last? If you’re not sure yet, ask whether it can be shorter.
3. What happens if I want to end it? Find out before you need to know.
4. What exactly will you do for me? Searching, showings, negotiating, paperwork, deadlines. Get it listed.
5. Who will actually show me homes? On our team, every agent shows homes, so you’ll work with the same person from your first tour through the offer.
6. Do I owe anything if I buy a house you didn’t show me? That’s the carryover question.
7. Can I read it before the first tour? The answer should always be yes.

How we handle it

We’d rather you walk into a showing knowing exactly what’s in the agreement than feeling like you signed something in a hurry. We talk through compensation up front, before your first tour, and we go through the agreement with you line by line. If you have questions, ask them. If you’d like to sleep on it, do.

It’s also fine to interview more than one agent. We’d encourage it.

What this means for you

Think of the buyer agreement as the starting point of a working relationship, not a hurdle. Once it’s signed, we get to the fun part. If you’d like to see what ours looks like before you decide anything, talk to us, or start with what you’re looking for. Our first-time buyer guide walks through the rest of the process.

Sources

• National Association of REALTORS®, Written Buyer Agreements 101. https://www.nar.realtor/the-facts/written-buyer-agreements-101