What Is a Buyer Representation Agreement in California? (And Do You Have to Sign One?)

In California, a buyer’s agent must have a signed written agreement with you before they can show you a single home. That agreement is called the Buyer Representation and Broker Compensation agreement, or BRBC. It is not a formality. It is a legally binding contract, and as of January 1, 2025, it is required by law before any property showing can take place.

By Austin Criss, REALTOR® | RE/MAX TIFFANY | June 20, 2026

Questions? Call or text me at 714.600.1176. Always Ask Austin.

This is one of the most common points of confusion I see with first-time buyers right now. They hear “you have to sign an agreement” and immediately wonder if they’re locking themselves into something permanent, or agreeing to pay thousands of dollars out of pocket no matter what. Let me clear that up.

Why the BRBC Exists

The BRBC came out of the NAR settlement that reshaped how buyer agent compensation works across the country. Before 2025, sellers would pre-set a buyer agent commission through the MLS, and buyers rarely thought about it because they never wrote a check for it directly. That system is gone.

Today, your agent’s compensation is negotiated between you and your agent in the BRBC. You then have the option to ask the seller to cover it as part of your offer. Whether the seller agrees is up to them and the negotiation. What changed is the transparency: you now know exactly what your agent earns and exactly who is responsible for paying it.

What the BRBC Actually Covers

California’s BRBC form has four core components:

• Compensation amount: This is the fee your agent earns if you buy a home. It can be a percentage of the purchase price or a flat dollar amount. This is fully negotiable, no percentages are set by law.
• Services to be provided: What your agent will actually do for you during the home search and transaction.
• When compensation is due: Under what circumstances the agent earns their fee. This matters, because if you cancel or the deal falls through, the timing rules determine whether anything is owed.
• Termination date: When the agreement ends. For individual buyers in California, the maximum term is 3 months. If an agent tries to lock you into anything longer, that agreement is void by law.

Non-Exclusive vs. Exclusive: This Is the One You Need to Understand

This is the part most buyers miss when they skim the form. The BRBC comes in two versions, and they work very differently.

Non-exclusive: You can work with other agents. Your agent only earns their fee if they were actually involved with the property you end up buying. “Involved” has a specific legal definition: they physically showed you the home (in person or virtually), submitted a signed offer on your behalf, reviewed disclosures with you, or introduced you to the seller’s agent. Simply sending you a Zillow link does not count.

Exclusive: One agent, for any home you buy during the agreement term, regardless of whether they were involved. Even if you find the home on your own, your agent earns their fee if you purchase it while the exclusive agreement is active.

I work with most of my first-time buyers under a non-exclusive agreement to start. It gives them flexibility, and it puts the accountability on me: I earn my fee when I do the work. As we get further into the search and they understand my value, we revisit from there.

Who Actually Pays Your Buyer’s Agent?

This is the question buyers ask me more than any other right now, and the answer has two parts.

Contractually: You are responsible for your agent’s compensation under the BRBC. You signed the agreement, so you’re on the hook for the amount in it.

In practice: Buyers routinely ask sellers to cover buyer agent compensation as part of the purchase offer, using a line in the California Residential Purchase Agreement (RPA). Sellers can agree, counter, or decline. When a seller agrees and pays through escrow, that payment offsets what you owe under the BRBC. The agent cannot receive more than the BRBC amount from any source combined.

In the Orange County market today, many sellers are still covering buyer agent compensation because it keeps their home accessible to the widest pool of qualified buyers. But in a multiple-offer situation, asking for seller-paid buyer agent compensation can cost you the deal. That’s a strategic conversation I walk every buyer through before we write an offer.

What Happens If You Want to Cancel

Life changes. You might decide to pause your search, switch agents, or take a different direction. Here is how cancellation works:

• Non-exclusive BRBC: Either party can cancel in writing, and it takes effect when the other party receives it. No waiting period.
• Exclusive BRBC: 30 days written notice is required before the agreement can be terminated.

Here is what most buyers do not realize: even after you cancel, there is a continuation period. Within 5 days of cancellation, your agent can send you a written list of properties they showed you or were otherwise involved with. If you buy any of those homes during the continuation period, your agent still earns their fee.

This is not a gotcha. It prevents someone from cancelling an agreement the day before closing to avoid paying a fee. But it does mean you should ask your agent to clearly define the continuation period before you sign.

What You Need to Provide Within 5 Days of Signing

The BRBC also sets expectations on your side. Within 5 business days of signing, you are expected to provide proof of funds and a mortgage pre-approval. This protects your agent’s time, and honestly, it protects yours too. If you are not yet pre-approved, that is the first thing we should talk about before you sign anything.

In Cypress, Buena Park, and Anaheim, I work with first-time buyers who are often starting the pre-approval process at the same time they are beginning their home search. That is fine. We can sign the BRBC and begin working together while your lender gets your pre-approval in order. You just need to be in the process within 5 days, not fully approved on day one.

What to Ask Before You Sign

Before you sign any buyer representation agreement, get clear answers to these five questions:

• Is this non-exclusive or exclusive?
• What is the compensation amount, and how is it structured?
• What is the term, and when does it end?
• How long is the continuation period after cancellation?
• What exactly counts as “broker involvement” in your agreement?

A good agent will answer all of these without hesitation. If someone rushes you past the signature line without explaining what you are agreeing to, that is information.

The OC Market Context Right Now

Understanding the BRBC also means understanding why your agent’s guidance matters in this specific market. According to the June 2026 Orange County Housing Report from Steven Thomas at Reports on Housing, the Expected Market Time across Orange County is currently 83 days overall, with detached homes moving faster at 76 days. Demand is at 1,637 pending sales and has essentially been flat since last year. Mortgage rates are sitting at 6.68% as of early June 2026, which is keeping affordability tight and buyer activity muted.

In a market like this, where the hottest price ranges are detached homes under $1.5 million and sellers are increasingly pulling listings that are not priced right, having a buyer’s agent who knows how to read the data and write a competitive offer is not optional. The BRBC formalizes that relationship. It is worth understanding before you sign it.

Frequently Asked Questions

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

Yes. California law requires you to sign a written BRBC before a licensed agent can show you any residential property. This took effect January 1, 2025. You cannot view a home with a buyer’s agent without signing first.

What does a buyer representation agreement cover in California?

The California BRBC covers four things: the compensation amount the broker will earn, the services the agent will provide, when compensation is owed, and the agreement’s end date. It can be non-exclusive (you can work with other agents) or exclusive (one agent for all purchases during the term).

How long does a buyer representation agreement last in California?

For individual buyers, California law caps the BRBC term at 3 months. If an agreement is written for longer than 3 months with an individual buyer, it is void. Corporations, LLCs, and partnerships can agree to longer terms.

Who pays the buyer’s agent commission in California after the NAR settlement?

The buyer is contractually responsible for their agent’s compensation under the BRBC. However, the buyer can request the seller cover that compensation as a term in the purchase offer. Sellers are not required to agree. If the seller pays, it offsets what the buyer owes. It does not stack on top.

Can I cancel a buyer representation agreement in California?

Yes, but the process depends on the type. A non-exclusive BRBC can be cancelled in writing by either party, effective upon receipt. An exclusive BRBC requires 30 days written notice. After cancellation, the agent has 5 days to send you a list of properties they were involved with, and can still earn their fee if you buy one of those homes during the continuation period.

About Austin Criss
Austin Criss is a REALTOR® with RE/MAX TIFFANY serving Cypress, Buena Park, and Orange County, California. He specializes in helping first-time buyers and move-up sellers navigate the process from first question to closing. Call or text him at 714.600.1176, or visit austincriss.com.