A guide for buyers & sellers in the greater Phoenix area
Buyer agreements &
real estate compensation.
Understand the NAR settlement in Arizona, including buyer agreements and real estate compensation, before touring, making an offer, or listing your home.
What the NAR settlement changed.
The National Association of REALTORS® (NAR) settlement led to national practice changes effective August 17, 2024. Locally, Arizona Regional Multiple Listing Service (ARMLS) implemented its changes on August 1, 2024. These changes affect how buyers and sellers discuss representation, sign agreements, and negotiate broker compensation.
Two central changes concern written agreements before an MLS participant working with a buyer tours a home, and the removal of buyer-broker compensation offers from participating multiple listing services. Compensation can still be negotiated outside the MLS.
Buyer agreements before touring.
A written buyer agreement sets out the relationship and compensation terms. Under the applicable MLS rules, an MLS participant working with a buyer must have that agreement before an in-person or live virtual home tour. An initial conversation about services does not require one.
Read the terms that affect your search.
- Services and scope: What assistance is included, and which properties or areas does the agreement cover?
- Duration and exclusivity: When does it begin and end, and does it limit working with other brokers?
- Compensation: What specific amount or objectively determinable rate applies, and when could you owe it?
- Ending the relationship: What cancellation terms or continuing obligations apply?
The settlement does not require an exclusive or long-term agreement. Discuss the duration, scope, and services that fit your needs, and read the actual document before signing. NAR explains the required terms and negotiable choices in buyer agreements.
Who pays the buyer’s broker?
Payment may come from the buyer, seller, listing broker, or an agreed combination. Seller or listing-broker payment is not automatic. If the available payment is less than your agreed fee, discuss any amount you could owe before proceeding. The buyer’s broker cannot receive more from all sources than the compensation permitted by the buyer agreement.
Compensation choices for sellers.
You may choose to offer buyer-broker compensation, but the settlement does not require you to do so. A buyer may also request it as part of an offer. Evaluate that request alongside price, other concessions, contingencies, and timing.
Under NAR’s practice changes, a listing broker must obtain the seller’s written approval before offering or paying compensation to a buyer’s representative. That approval must specify the amount or rate. NAR’s consumer guide explains these compensation options.
Offers of buyer-broker compensation cannot be placed in the MLS. They may be communicated through permitted off-MLS channels. Seller concessions toward eligible buyer expenses are a different category and should be documented appropriately.
Common questions.
Do I need an agreement to visit an open house?
Not simply to attend on your own. NAR distinguishes that from touring with an agent working for you. A listing agent providing access solely on the seller’s behalf generally does not need a buyer agreement with an unrepresented visitor. Ask who the agent represents.
Can I negotiate the agreement?
Yes. Discuss the fee, services, length, scope, and other terms before signing. Changes to an existing agreement require the appropriate agreement of the parties; do not assume you can cancel or rewrite it unilaterally.
Does seller-paid compensation mean my agent represents the seller?
The source of payment alone does not establish representation. Review the agency disclosures and employment agreement to understand whom each professional represents and any disclosed conflicts.
Are seller concessions and broker compensation interchangeable?
They serve different purposes. Buyer-broker compensation pays for brokerage services; seller concessions can help with other buyer expenses, such as eligible closing costs or repairs. Ask your agent and lender how each payment should be documented and treated under your loan program.
Can I add an agent’s fee to my mortgage?
Do not assume a fee can be rolled into the loan. Ask your lender about the current requirements for your loan program, allowable seller payments, and cash needed at closing before structuring an offer.
Go directly to the sources.
- NAR: Settlement FAQs
- NAR: Written Buyer Agreements
- NAR: Offers of Compensation
- ARMLS: Settlement practice changes and local guidance
General educational information, not legal or tax advice. Your signed agreements, applicable law, current MLS rules, and lender requirements govern your transaction. Consult an Arizona real estate attorney for legal interpretation of your obligations.
Clear answers.
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