The New Compensation Agreement, Explained for Buyers and Sellers

What changed

Under the new rules, offers of compensation to a buyer's broker can no longer be advertised in the Multiple Listing Service. Those conversations now happen off the MLS, between the parties involved.

Buyers must also sign a written buyer-broker agreement with their agent before touring a home, which spells out the agent's compensation up front. In California that agreement is the Buyer Representation and Broker Compensation Agreement (BRBC), required before an agent tours a home with a buyer since January 2025. Sellers, in turn, must consent before any offer of compensation to a buyer's representative is made.

Are these rules still current? Yes. They remain in effect in 2026, and a federal appeals court affirmed the settlement behind them in August 2026. What has not changed is the practical takeaway: compensation is negotiated, agreed in writing, and understood by every party before touring begins.

Who pays the buyer's agent?

The short answer is that it is now a negotiated matter rather than an automatic default. Buyers may pay their agent directly, from their own funds, a gift, or a seller credit. A seller can still choose to offer buyer-agent compensation as part of the deal; it simply cannot be advertised in the MLS.

The important thing is that the agreement is explicit and in writing, so everyone knows the plan before touring begins.

Why you should ask early

The best time to talk about compensation is at the very start, before you fall in love with a house. That way the numbers are settled and the tour is a pleasure, not a negotiation.

I walk every buyer and seller through their written agreement clearly, so you always know what to expect.

Let's talk it through

If you have questions about how compensation works in your specific situation, I am happy to explain it over a call or a coffee.

Let's talk about how I can help you. Enjoy this journey we call life!