California Buyer Representation Agreement: What Every Los Angeles Home Buyer Needs to Know

What is a California Buyer Representation Agreement and do I have to sign one?

California law (AB 2992, effective January 1, 2025) requires a written buyer-broker representation agreement before your agent can earn a commission. The standard form is the BRBC (Buyer Representation and Broker Compensation Agreement), issued by the California Association of Realtors. Under the agreement, you are the default payer of the buyer's agent commission, though you can ask the seller to cover it as a purchase concession. The agreement is capped at three months, outlines whether the arrangement is exclusive or non-exclusive, and spells out exactly how much your agent can earn.

By Paul Blair | November 4, 2026

If you're shopping for a home in Los Angeles and your agent handed you a form to sign before the first showing, you're not alone in finding it confusing. That form is the BRBC. And yes, you need to sign it.

Under California AB 2992, effective January 1, 2025, buyers must have a signed buyer-broker representation agreement in place before their agent can earn a commission. The California Association of Realtors revised its standard BRBC form in December 2024 to reflect the new requirements. Industry practice, shaped by the NAR settlement in August 2024, pushes this even earlier: most LA agents now ask for a signed agreement before showing you any homes.

This isn't a scare tactic or a contract designed to lock you in forever. It's a disclosure document as much as it is an agreement. Here's what it actually says and what you're agreeing to.

What the BRBC Covers

The form has three terms that matter most.

Duration. AB 2992 caps buyer-broker agreements at three months. After that, both parties can extend in writing, but the initial agreement cannot run longer than 90 days. This is a consumer protection specific to California: other states don't have this cap.

Exclusive vs. non-exclusive. An exclusive agreement means you agree to work only with this agent for the specified property type and geographic area during the term. A non-exclusive agreement means you can work with other agents on homes that agent didn't show you. Most LA agents will ask for exclusive representation, which is reasonable if the relationship is a good fit. If you're early in the process and still evaluating agents, ask about a non-exclusive arrangement or a shorter trial period.

Maximum compensation. The BRBC requires your agent to state the maximum commission they can earn. This is a cap, not a floor. The actual amount is negotiated. Many LA sellers continued offering buyer's agent compensation through 2025 and 2026 to keep their buyer pool as wide as possible, particularly at the $3M to $10M price points where the buyer pool is already thin.

Who Actually Pays

Here's where most buyers have questions.

You are the default payer under the agreement. That means if the seller doesn't offer any buyer's agent compensation, you owe your agent what the BRBC specifies.

In practice, what usually happens: your agent submits your offer alongside a request for the seller to cover the buyer's agent fee as a seller concession. If the seller agrees, that amount is credited against what you owe under the BRBC. If the seller declines or only offers a partial amount, you pay the difference.

The California DRE published a consumer alert in November 2024 making this explicit: buyers are financially responsible unless the agreement contains an exit clause or the agent waives the obligation. Read your BRBC before you sign it and ask your agent whether the agreement includes that protection.

On a $3M home in the Hollywood Hills, a 2.5% buyer's agent commission is $75,000. That's real money. Understanding how compensation flows through the BRBC before you're in an active escrow is worth the 15 minutes it takes.

The BRBC also interacts with the California Residential Purchase Agreement in a specific way: the RPA now has a designated field for buyer's agent compensation, which is tied directly to the BRBC terms. If you're not familiar with how the California Residential Purchase Agreement works for LA buyers, that's worth reading before you're under contract.

Before You Sign, Ask These Questions

You're not obligated to sign the first BRBC you're handed. Here's what to ask before you do.

What is the compensation amount, and how is it structured? The BRBC must state a specific maximum. If an agent says "whatever the seller offers," push back. The form requires a number.

Is this exclusive? Understand what property types and geographic area the exclusivity covers. A BRBC written to cover all of Los Angeles County locks you in broadly. A BRBC written for single-family homes in the Hollywood Hills is narrower.

What happens if I want to end the relationship? Some forms include an exit clause. Some don't. Know before you sign.

What if the seller won't pay? Ask your agent directly how they handle the scenario where a seller declines to offer buyer's agent compensation. Some agents will negotiate their fee down. Some won't. Either answer is fine as long as you know it going in.

If you're still getting pre-approved for a mortgage in Los Angeles and not quite ready to start showing homes, ask your agent if you can hold off on signing until you're actively looking. The law says the agreement must be in place before an offer is submitted; industry practice says before showings. Know where your agent stands.

If you're ready to start looking at homes in the Hollywood Hills, Bel Air, or the Westside and want to understand exactly how representation works under the new California rules, connect with our team before the first showing. We'll walk you through the BRBC terms specific to your search before you sign anything.

What About Seller-Paid Compensation?

The BRBC doesn't prohibit sellers from paying buyer's agent commissions. It just separates the obligation from the seller's decision.

In the LA luxury market, sellers offering buyer's agent compensation remained common through 2025 and into 2026. At the $5M to $10M tier, most sellers continued to include it in their listing strategy because the buyer pool is narrow enough that creating friction for buyer's agents costs more than the commission saved.

That said, it's no longer guaranteed. When you submit an offer, your agent should include a specific request for seller-paid compensation as part of the transaction. How that seller concession is structured in Los Angeles has specific implications for escrow and loan documentation that are worth understanding.

If the seller declines and you don't have an exit clause in your BRBC, you owe your agent the agreed-upon amount at close. This is not a hypothetical. It happened to buyers in 2025 who signed agreements without reading them.

Frequently Asked Questions

Do I have to sign a buyer representation agreement before seeing homes in California?

Under California law, the signed agreement is required before an offer is submitted, not necessarily before the first showing. However, most Los Angeles agents now ask buyers to sign before any showings, following the NAR settlement practice that took effect in August 2024. If an agent won't show homes without a signed BRBC, that's standard practice, not a pressure tactic.

What happens if I want to fire my agent after signing a buyer representation agreement?

It depends on the terms of your BRBC. If the agreement includes an exit clause and the agent agrees to release you, you can walk away without owing a commission. If there's no exit clause and you buy a home that the agent showed you during the agreement period, you likely owe the commission regardless of who closes the transaction. Always ask about exit provisions before signing.

Can I work with multiple buyer's agents in Los Angeles at the same time?

You can, but only if you have non-exclusive agreements with each one. Most agents in the LA luxury market will ask for an exclusive arrangement. If you want flexibility, negotiate a shorter term (30 to 60 days rather than 90) or a narrower scope (specific neighborhoods rather than all of Los Angeles County).

Who pays my buyer's agent if the seller won't cover it?

You do, up to the maximum amount in your BRBC, unless your agreement includes an exit clause or your agent agrees to waive or reduce the fee. When submitting an offer, your agent will typically include a request for seller-paid buyer's agent compensation as a concession. If the seller declines, the obligation falls back to you under the BRBC.

How long does a buyer representation agreement last in California?

California law (AB 2992) caps buyer-broker agreements at three months. The agreement can be extended in writing after the initial term expires, but the original agreement cannot be written for longer than 90 days. This is a California-specific protection that most other states don't have.

The BRBC is new paperwork with real financial stakes. The buyers who end up surprised are the ones who signed without reading it. Take the 10 minutes before the first showing, ask the questions above, and you'll go into the process knowing exactly what you agreed to.

About Paul Blair Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas, Los Angeles and Houston. With 22 years in the business, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.