If your real estate agent recently asked you to sign a buyer agreement before showing homes, you may have wondered what changed.
This requirement isn't a new sales strategy. It's part of nationwide real estate commission rule changes that reshaped how buyer agents are compensated. Understanding it upfront can help you avoid confusion and negotiate with greater confidence.
Many people still refer to these updates as the "new real estate commission law," even though they stem from a legal settlement rather than a new federal statute.
Because headlines often oversimplified the changes, buyers and sellers are left with questions about how commissions work today. This guide explains what changed, why the rules were updated, and what buyers and sellers should expect in today's real estate market.
What Is the New Real Estate Commission Law?
The updated commission rules require buyers to take a more active role in understanding how their agent will be paid.
Before touring homes with an MLS-participating agent, buyers must sign a written representation agreement outlining:
- Services the agent will provide
- Compensation method
- Length of the agreement
- Whether the agreement is exclusive
- Conditions for ending the agreement
If a buyer declines to sign a representation agreement, MLS-participating agents are generally not permitted to show homes under the current rules. In that case, a buyer may choose to contact listing agents directly, though doing so means the agent will represent the seller's interests rather than the buyer's.
Agent compensation may take several forms, including:
- Flat fees
- Hourly rates
- Percentage-based commissions
If a seller chooses not to contribute toward the buyer-agent commission, the buyer may need to pay some or all of that fee. However, many sellers still agree to cover buyer-agent compensation during negotiations to help attract qualified buyers.
Because commissions remain negotiable, buyers should compare agents, ask detailed questions about fees, and fully understand the agreement before signing.
Once executed, the contract generally establishes how compensation will be handled throughout the transaction, making early discussions especially important.
Timeline of the Changes
Understanding when these changes occurred makes today's commission rules much easier to understand.
How commissions worked before 2024
Before the settlement, sellers typically agreed to a total commission of about 5% to 6%. That amount was usually split between the listing agent and the buyer's agent.
Because the buyer-agent commission appeared on MLS listings, buyers rarely discussed or negotiated their agent's compensation directly.
March 2024 NAR settlement
In March 2024, NAR reached a nationwide settlement that resolved major antitrust lawsuits.
Besides the financial settlement, NAR agreed to implement practice changes affecting MLS-participating brokerages across the country.
August 2024 rule implementation
The new rules officially took effect on August 17, 2024.
From that date forward:
- Buyer-agent compensation could no longer appear on MLS listings.
- Buyers had to sign written representation agreements before touring homes with MLS-participating agents.
Current status of the commission rules
As of 2026, these requirements remain in place nationwide.
Some states have added additional requirements. Nevada, for example, enacted Assembly Bill 258, which made written buyer-broker agreements a state legal requirement beginning in October 2025.
Old vs. New Commission Rules
Comparing the old and new systems highlights what actually changed and what stayed the same.
Previously, sellers often offered compensation for both agents through the MLS, and buyers rarely discussed commission with their own representative.
Today, compensation is negotiated directly between buyers and their agents before touring homes, while seller contributions remain negotiable during the transaction.
Comparison table: Before vs. After
| Before August 2024 | After August 2024 |
| Buyer-agent compensation displayed on MLS | Buyer-agent compensation removed from MLS |
| Informal buyer agreements common | Written buyer agreements generally required |
| Commission discussions often delayed | Compensation discussed upfront |
| Sellers commonly paid both agents | Seller contributions remain negotiable |
Although the process has changed, one important rule has not. Real estate commissions remain fully negotiable, and there is still no government-mandated commission rate.
Major Rule Changes
Several important updates now shape how residential real estate commissions are negotiated.
Buyers working with MLS-participating agents must sign a written buyer representation agreement before touring properties.
The agreement explains the services the agent will provide and how compensation will be handled.
Buyer-agent compensation can no longer appear in MLS listings. Instead, buyers, sellers, and their agents negotiate compensation separately during the transaction.
Listing agreements and buyer agreements must clearly state that commissions are negotiable and are not established by law or industry standards.
Despite these disclosure changes, agents and clients remain free to negotiate compensation that fits their individual circumstances.
What the Changes Mean for Buyers
The updated commission rules require buyers to take a more active role in understanding how their agent will be paid.
Before touring homes with an MLS-participating agent, buyers must sign a written representation agreement outlining:
- Services the agent will provide
- Compensation method
- Length of the agreement
- Whether the agreement is exclusive
- Conditions for ending the agreement
Agent compensation may take several forms, including:
- Flat fees
- Hourly rates
- Percentage-based commissions
If a seller chooses not to contribute toward the buyer-agent commission, the buyer may need to pay some or all of that fee. However, many sellers still agree to cover buyer-agent compensation during negotiations to help attract qualified buyers.
Because commissions remain negotiable, buyers should compare agents, ask detailed questions about fees, and fully understand the agreement before signing.
Once executed, the contract generally establishes how compensation will be handled throughout the transaction, making early discussions especially important.
What the Changes Mean for Sellers
The updated commission rules give sellers greater flexibility when deciding whether and how to offer buyer-agent compensation.
While sellers can still contribute toward the buyer's agent fee, they are no longer expected to advertise that offer through the MLS.
Compensation can instead be communicated through direct conversations, broker communications, or other permitted marketing channels giving sellers more control over how and when that offer is presented.
Depending on market conditions, a seller may choose to:
- Offer compensation to attract more buyers.
- Negotiate compensation during contract discussions.
- Decline to offer compensation and leave that expense to the buyer.
In competitive markets, many sellers continue offering buyer-agent compensation because it can expand the pool of qualified buyers. In slower markets, compensation often becomes another negotiable term alongside purchase price, closing costs, and repair credits.
Current Commission Practices
Although the commission rules changed significantly, actual commission rates have remained more stable than many industry experts originally predicted.
Many sellers still offer compensation to buyer agents during negotiations, even though those offers are no longer displayed on the MLS.
Instead of eliminating commissions, the settlement largely changed how they are discussed and documented.
Market data also shows that buyer-agent commissions have fluctuated only slightly since the rule changes.
For example, Redfin reported the average buyer-agent commission reached approximately 2.36% during the third quarter of 2024 before rising again to around 2.42% by the third quarter of 2025.
Commission trends also vary by property price.
| Home Price | General Commission Trend |
| Under $500,000 | Slightly higher average commission |
| $500,000–$1 million | Near national averages |
| Over $1 million | Slightly lower average commission |
Another noticeable change is that buyers and agents now discuss compensation much earlier in the home-buying process.
Written buyer agreements establish expectations before property tours begin, reducing confusion later in the transaction.
Some buyers also choose to contact listing agents directly instead of hiring separate representation.
While this may reduce the number of professionals involved, it does not automatically lower the total commission because listing agreements are negotiated independently.
Overall, today's market places greater emphasis on transparency rather than dramatically reducing commission costs.
State-Specific Rules
Although the nationwide settlement established broad practice changes, real estate commission requirements still vary by state.
Some states have adopted additional laws governing buyer representation agreements, brokerage disclosures, and agency relationships. Others continue following the national MLS policies without adding separate legislation.
Brokerages may also establish their own internal procedures for buyer agreements, compensation disclosures, and commission negotiations.
As a result, buyers could encounter different paperwork even within neighboring cities.
Before entering any real estate transaction, buyers and sellers should review current state requirements or speak with a licensed local real estate professional.
States such as Nevada have adopted additional brokerage agreement laws that extend beyond the national settlement requirements.
Conclusion
The new real estate commission law did not eliminate commissions or establish government-controlled commission rates. Instead, it changed how buyer-agent compensation is disclosed, negotiated, and documented during residential real estate transactions.
Today's buyers should expect to discuss compensation and sign written representation agreements before touring homes. Sellers continue deciding whether to contribute toward buyer-agent compensation, but those offers are now negotiated outside the MLS.
Before signing any agreement, review your state's current requirements and speak with a licensed local real estate professional if any compensation terms are unclear.
Frequently Asked Questions
Did the commission changes affect how much agents earn overall?
Not significantly. Industry reports through 2026 indicate that average commission rates have remained relatively stable despite the new disclosure requirements. While compensation is now negotiated more openly, overall earnings have changed only modestly in most markets.
Can a buyer switch agents after signing a buyer representation agreement?
Possibly. The answer depends on the agreement's termination provisions. Some contracts allow cancellation with written notice, while exclusive agreements may require both parties to agree before ending the relationship.
Are dual agency arrangements affected by the new commission rules?
Dual agency remains legal in states where it is permitted. However, agents must continue complying with state disclosure laws, and compensation arrangements must follow the updated transparency requirements established after the settlement.
Do these commission changes apply to new construction home purchases?
Generally, yes. Buyers working with MLS-participating agents typically sign buyer representation agreements before touring builder properties.
