---
title: "Who Pays the Buyer's Agent in California? Fees and the Buyer Agreement"
description: "How buyer-agent compensation works in California after the 2024 settlement, the AB 2992 written agreement, and who pays in practice."
url: https://giselesasso.com/buy/who-pays-the-buyers-agent-in-california
lastUpdated: 2026-09-15
---

# Who pays the buyer's agent

What the written agreement binds you to, what stays negotiable, and what to ask before you sign one.

Your written agreement, not the listing, now sets what your agent is paid.

A 2024 industry settlement removed buyer-agent compensation from the MLS, and California's AB 2992 now requires a signed written agreement before touring homes. Payment can come from a seller concession, the purchase contract, or the buyer directly, but the number always comes from that written agreement, not the listing.

## What changed with the 2024 industry settlement?

A national settlement ended the practice of listing brokers publishing a set commission offer to buyer agents on the MLS. The change took effect **August 17, 2024**.

Before the change, a seller's listing typically stated the exact amount the seller would pay a buyer's agent, visible to every agent through the MLS. That field is gone.

Buyer agents and sellers can still negotiate compensation. The negotiation now happens off the MLS, agent to agent or through the offer itself, instead of being posted in advance.

The settlement also requires a buyer's agent to have a written agreement with a buyer before touring homes together, an MLS-rule requirement that took effect the same day, August 17, 2024. That is separate from, and earlier than, California's own AB 2992 written-agreement statute described below.

_Before and after 2024_

| Practice | Before | After |
| --- | --- | --- |
| Buyer-agent fee on MLS | Published on the listing | Not published on the MLS |
| Compensation source | Set by the seller's listing | Negotiated between parties |
| Agreement before touring | Not required nationally | Required by MLS rule |

## What does California law require starting in 2025?

California law now requires a signed, written buyer representation agreement, under Assembly Bill 2992 (AB 2992), the 2024 state law setting this requirement. The requirement took effect **January 1, 2025**.

AB 2992 requires a buyer's agent to sign a written representation agreement with the buyer as soon as practical, and no later than when the buyer signs an offer to purchase.

The agreement must state the agent's compensation, the services the agent will provide, when compensation is due, and an expiration date.

The agreement cannot run longer than 3 months from the date it is signed. A renewal must also be written, dated, and signed, and cannot happen automatically.

An agreement that skips these terms, or that tries to auto-renew, is void and unenforceable under the statute.

## Who actually pays the buyer's agent today?

The buyer's written agreement **states who pays and how much**. A seller can still offer to cover some or all of it, but nothing is automatic.

In practice, three outcomes are common: the seller offers a concession that covers the buyer-agent fee, the fee is built into the purchase contract and paid from proceeds at closing, or the buyer pays the agent directly.

Every outcome starts with the buyer's written agreement. That document sets the number the buyer's agent is owed regardless of where the money comes from.

There is no published statewide rate for this fee. It is a negotiated number between the buyer and the agent, written into the agreement before the buyer makes an offer. See the [buyer closing costs breakdown](/buy/closing-costs-in-santa-cruz-county) for how this fee sits alongside the rest of what a buyer pays.

## Is there a typical buyer-side fee?

There is **no verified statewide or Santa Cruz County figure** for a typical buyer-agent fee. Treat it as negotiable and read the number in your own agreement.

Fee structures vary by agent, brokerage, and transaction, and no primary source publishes a standard rate.

Before signing, ask the agent to state the fee as a flat dollar amount or a percentage, and confirm in writing what happens if the seller's concession is lower than that number.

## What does the buyer agreement bind, and how should a buyer read it?

The agreement is a contract between the buyer and the brokerage. **Read every clause before signing**, not just the fee line.

_Agreement clauses_

| Clause | What it covers |
| --- | --- |
| Compensation | The agent's fee, stated as a flat amount or percentage |
| Services | What the agent will do: showings, offers, negotiation, closing support |
| Term | Start date and expiration, capped at 3 months |
| Payment timing | When the fee is due, typically at closing |
| Termination | How either party can end the agreement early |

## What is dual agency, and is it legal in California?

Dual agency, where one agent or brokerage represents both buyer and seller, is **legal in California with written disclosure and consent**.

California Civil Code sections 2079.13 through 2079.24 set the disclosure rules for agency relationships in real estate transactions.

In a dual-agency transaction, the agent owes duties to both sides and cannot advocate exclusively for either one. A buyer who wants an agent negotiating only for them should ask directly whether dual agency is possible on a given listing before touring it.

A buyer can decline to proceed under dual agency and ask for their own agent instead.

## What should a buyer ask an agent before signing?

A short list of questions before signing protects a buyer more than reading the fee line alone.

- Is the fee a flat dollar amount or a percentage of the purchase price?
- What happens if the seller offers a concession lower than the agreed fee?
- What is the exact expiration date, and does it renew automatically? (It should not.)
- What services are included, and what costs extra?
- Can the agreement be ended early, and how?

## What happens if the seller offers less than the agreement amount?

The buyer's agreement **sets the number the agent is owed**. If a seller's concession falls short, the agreement decides who covers the difference.

Some agreements let the buyer and agent renegotiate the fee for a specific offer. Others require the buyer to cover the gap directly.

This is why reading the termination and compensation clauses before signing matters more than the headline fee, since the gap is negotiated in the agreement, not decided at [closing](/buy/closing-costs-in-santa-cruz-county#worked-example), alongside the rest of what a buyer owes.

## FAQs

**What happens to my buyer agreement if I never end up buying a home?**

Typically nothing is owed if no purchase closes, but confirm this in the termination clause since agreements can differ on what happens if the search ends without a sale.

**Can I have more than one buyer's agent working for me at the same time?**

Generally no. Most buyer representation agreements are exclusive to one agent or brokerage for their stated term, so signing with a second agent during that period can create a conflict.

**Does a new construction or for-sale-by-owner purchase still need a written buyer agreement?**

AB 2992 applies broadly whenever a buyer works with a licensed agent, regardless of whether the seller is a builder or an individual selling without a listing agent.

**What if I already toured a home with an agent before signing an agreement?**

MLS rules require the written agreement before a participating agent shows homes, so ask the agent to clarify the agreement status before touring anything further.

## How I help buyers

Buying here has a lot of moving parts. I keep every step in view, explain what comes next before you have to ask, and tell you plainly when something is not right.

- No surprises at closing
- Always a call or text away
- Your pace, no pressure to rush
- Every step explained in advance
- Straight answers, not a sales pitch

## Contact

Have questions about a buyer agreement?

Phone: 831-332-5624
Email: gisele@giselesasso.com