If you’re starting your home search, here’s what a Buyer-Broker Agreement means for you—and why it could work in your favor.
In August 2024, anyone working with a licensed real estate agent in New York State must sign a buyer-broker agreement before viewing any property—virtually or in person. This rule follows a nationwide settlement involving the National Association of REALTORS® (NAR) and reshaped the home-buying process across the country, including right here in NYC.
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What Is a Buyer-Broker Agreement?
In simple terms, this is a written agreement between a homebuyer and their real estate agent. It outlines:
- The services your agent will provide
- How and when the agent will be compensated
- Whether your relationship is exclusive or non-exclusive
- Your rights and obligations as a client
As of now, this agreement is required by law before you can even begin touring properties with a licensed broker.
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Why the Change? Transparency, Accountability & Better Representation
The rule is meant to bring clarity and fairness to the buying process. Historically, many buyers assumed that the agent showing them properties was working in their best interest—even when that wasn’t the case. This agreement eliminates that gray area.
When you sign a buyer-broker agreement, your agent is officially working for you—not the seller. That means:
- They are legally required to act in your best interest
- They must keep your information confidential
- They must disclose everything relevant to the transaction
In other words, it formalizes and protects your relationship.
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What Services Does a Buyer’s Agent Actually Provide?
While some buyers might wonder why they need an agent at all—especially in an age of online listings—the truth is, a great buyer’s agent adds real value at every stage of the process.
Here’s what a qualified NYC buyer’s agent does for you:
- Consulting & Strategy: Helps clarify your goals, finances, and timeline.
- Property Search: Identifies properties that fit your needs and budget, including off-market options.
- Tour Guidance: Walks you through homes and buildings, pointing out pros, cons, and hidden risks.
- Negotiation: Crafts competitive offers and negotiates price, terms, and contingencies on your behalf.
- Board Packages: Prepares and polishes co-op/condo board applications—crucial in NYC.
- Closing Support: Coordinates with attorneys, mortgage lenders, inspectors, and more to get you to the finish line.
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Exclusive vs. Non-Exclusive Agreements
Not all buyer-broker agreements are the same. You’ll typically encounter two types:
- Exclusive Agreements: You agree to work only with one agent during your search. This often comes with the most committed service.
- Non-Exclusive Agreements: This type of agreement allows you to tour homes with an agent for a period without committing to an ongoing relationship. It can be a way to get a feel for how the agent works before deciding to engage them long-term.
Each brokerage may have their own version of the agreement, so be sure to read and understand the terms before signing.
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Let’s Talk About Compensation
When starting to work with an agent, it is important to fully discuss their compensation and the different scenarios you may encounter. Typically, a buyer’s agent’s commission will be paid at closing, per the terms of your buyer’s agreement. While many sellers are still offering to pay the buyer’s agent’s commission in NYC, there are instances where the buyer may need to contribute. The commission terms are always negotiable, and your agent should clarify these details before you begin your home search.
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Additional Required Forms
Along with the buyer agreement, your agent must still present two mandatory disclosure forms:
- New York State Disclosure Form for Buyers and Sellers: Explains whether your agent is representing your interests, the seller’s—or both (dual agency). LINK
- New York State Housing and Anti-Discrimination Disclosure: This form outlines your rights under federal, state, and local housing and anti-discrimination laws. LINK
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Why Having a Buyer’s Agent Still Matters
Some question whether a buyer’s agent is still necessary when listings and data are widely available online. But in NYC—one of the most complex real estate markets in the world—knowledge and strategy matter more than ever.
Here’s what buyers ultimately want:
- The right home
- At the right price
- With as few hassles as possible
A great agent delivers on all three by offering:
- Deep market insights (building policies, board requirements, financing nuances)
- Strategic negotiation skills
- Support through legal and logistical hurdles
Without an agent, you risk mispricing, missing red flags, or facing avoidable delays. With an agent, you gain a trusted guide through one of life’s biggest financial decisions.
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Final Thoughts
The buyer-broker requirement may feel like just another form to sign—but in reality, it formalizes your right to professional, dedicated representation. It’s about protecting you, clarifying expectations, and ensuring fairness in how real estate professionals are compensated.
Whether you’re buying your first apartment or your fifth, aligning yourself with a knowledgeable agent can make all the difference.
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Have Questions? Let’s Talk.
Navigating NYC real estate doesn’t have to be overwhelming. If you’re considering buying or just want to better understand how the rules affect your search, we’re here to help.
Let’s connect and talk strategy.