Who pays the buyer’s agent in California is no longer automatic. Since the 2024 NAR settlement, the seller is not required to cover it and that compensation is negotiated on every deal. In practice, many sellers in Orange County still pay the buyer’s agent through a concession written into the purchase agreement, because it keeps their home competitive, but a buyer can no longer assume it. You agree to your agent’s fee in writing up front, and then who actually covers it becomes part of your offer strategy.
By Austin Criss, REALTOR® | RE/MAX TIFFANY | August 18, 2026
Questions? Call or text me at 714.600.1176. Always Ask Austin.
This is one of the most common questions I get from first-time buyers right now, and there is a lot of confusion online about it. The rules changed in 2024, and the headlines made it sound scarier than it is. Here is the straight version of how buyer’s agent compensation works in California today.
What changed after the NAR settlement
For decades, the seller typically offered to pay the buyer’s agent, and that offer was published in the MLS for every agent to see. The 2024 National Association of REALTORS settlement changed that. According to the NAR settlement summary, offers of buyer-agent compensation can no longer be advertised in the MLS, and sellers are no longer obligated to pay the buyer’s agent at all.
What did not change is that commissions have always been negotiable, a point the California Association of REALTORS® requires in writing in every buyer agreement. The settlement did not set a new rate or cap. It removed the assumption that the seller automatically pays your agent, and it put the conversation about who pays out in the open, where it should be.
So who actually pays in 2026?
Here is the practical reality in Orange County. Even though sellers are not required to pay the buyer’s agent, many still choose to, because offering to cover that fee makes their home more attractive to more buyers. A seller who refuses to contribute anything narrows their buyer pool, and most listing agents know it.
In a typical transaction today, the path looks like one of these:
- Seller concession: the buyer’s offer asks the seller to credit the buyer’s agent fee, and the seller agrees as part of the deal
- Buyer-paid: the buyer pays their agent directly, often in a lower-inventory situation or a strong seller’s market
- Split: the seller covers part and the buyer covers the rest
I structure most of my buyer offers to request that the seller cover the buyer’s agent compensation, and in this market that request is granted more often than not. The difference now is that it is negotiated openly in the offer rather than assumed in the background.
Your buyer representation agreement
Before any California agent shows you homes, you and that agent sign a written buyer representation agreement. In California this is commonly the C.A.R. Buyer Representation and Broker Compensation agreement, and it is required, not optional. It does three things that protect you:
- It states the rate or amount your agent will be paid, in writing, before you start
- It caps what your agent can receive from any source at that agreed figure, so the agent cannot collect more elsewhere
- It states clearly that broker fees are fully negotiable and not set by law
That cap is actually a buyer protection. If you agree to a 2.5% fee and the seller offers to pay 3%, your agent cannot keep the extra. The agreement holds your agent to the number you agreed on. I walk every buyer through this document line by line before we sign, because understanding it is the whole point.
How this affects your offer strategy
The change makes who-pays-the-agent a live part of negotiation, which actually gives an informed buyer more control. When I write an offer for a buyer in Cypress, Buena Park, Anaheim, and throughout Orange County, the request for the seller to cover the buyer’s agent fee is one lever among several, alongside price, contingency timelines, and the close date. It also sits inside the larger stack of closing costs you are already budgeting for, next to your half of the Orange County escrow fee.
In a competitive multiple offer situation, we weigh how that request affects the strength of the offer. In a slower situation, a seller is often happy to grant it to keep the deal moving, and right now the market leans that direction: Orange County active inventory was 5,046 homes at the start of August with an Expected Market Time of 101 days. Sellers are also watching their own side of the math, which I break down in what you net selling a home in Cypress. The buyers who struggle are the ones who did not understand the fee was on the table to begin with. The buyers who do well are the ones who planned for it from the first showing. That planning is exactly what your agent agreement is for.
Frequently Asked Questions
Who pays the buyer’s agent in California in 2026?
Since the 2024 NAR settlement, the seller is no longer required to pay the buyer’s agent, and compensation is negotiated on every transaction. In practice, many Orange County sellers still cover the buyer’s agent through a concession written into the purchase agreement, because it keeps their home competitive. Buyers can no longer assume it is automatic, though, which is why the fee is now spelled out in your buyer representation agreement and negotiated in your offer.
Does the buyer have to pay their agent out of pocket now?
Not necessarily. You agree to your agent’s fee in writing, but that fee can be covered by a seller concession negotiated into your offer, paid by you directly, or split between the two. In Orange County’s current market, sellers commonly still contribute toward the buyer’s agent fee. Whether yours will is part of the offer strategy your agent builds with you, and in many of my transactions the seller agrees to cover it.
Why do I have to sign a buyer agreement before seeing homes?
California requires a written buyer representation agreement before an agent shows you property. It protects you by stating your agent’s compensation up front, capping what the agent can earn from any source at that figure, and confirming in writing that commissions are negotiable and not set by law. It does not have to be a long exclusive contract, and the terms are negotiable. I review it with every buyer before we sign so there are no surprises later.
Are real estate commissions negotiable in California?
Yes, and they always have been. No law sets commission rates, and your buyer representation agreement must say so directly. The rate you agree to with your agent is between you and that agent. The separate question of who ultimately pays it, you, the seller, or a combination, is negotiated in the transaction itself. Understanding both pieces is how you avoid overpaying or being caught off guard at closing.
Confused About How Agent Fees Work Now?
I’ll walk you through your buyer agreement and how we structure the offer so the fee is handled the right way. I represent buyers in Cypress, Buena Park, Anaheim, and throughout Orange County.
714.600.1176, Always Ask Austin.
About Austin Criss
Austin Criss is a REALTOR® with RE/MAX TIFFANY serving Cypress, Buena Park, and throughout Orange County, California. He works with first-time buyers getting into their first home and move-up sellers navigating how to sell their current home and buy the next one at the same time. Call or text at 714.600.1176, or visit austincriss.com.