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The Before-the-Showing Buyer Agreement: What NAR Settlement Requires
NAR settlement: written buyer agreement mandatory before any showing. Must specify exact compensation — not a range. Agent cannot accept more than agreed amount. 27.2% of buyers negotiated agent fees post-settlement. Own Luxury Homes® 12-Point Agent Integrity Audit™ — every agreement reviewed before signing.
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The “Before the Showing” Buyer Agreement: What the NAR Settlement Requires and Why It Matters
Aug 2024
Date written buyer agreements before showings became mandatory for MLS members
Required
Specific compensation amount must be disclosed — not a range, not “market rate”
Before
Agreement must be in place before the first showing, not after
$1M+
Price tier where the pre-showing agreement has the highest financial stakes
Before August 17, 2024, most buyer’s agents showed homes without any formal agreement. The commission was buried in the MLS listing, the buyer often did not know what the agent was being paid, and the representation relationship was largely informal until offer time. The NAR settlement changed that structure entirely. Now, every MLS member must have a signed buyer representation agreement in place before showing any property. The agreement must specify the compensation amount or calculation method. And critically: the agent cannot accept more than the amount in the agreement, even if the seller offers more.
What the Pre-Showing Agreement Must Contain
Specific Compensation Amount
The agreement must state a specific dollar amount or specific percentage. Not a range. Not “whatever the seller offers.” Not “market rate.” If a buyer signs an agreement saying the agent will earn “the buyer-broker commission as offered by the seller,” that is not compliant with the settlement requirement. The amount must be specific and agreed by both parties before the first showing.
Clear Scope of Representation
The agreement should define what properties and geographic area are covered. For luxury buyers at $3M+, this should explicitly include off-market and private listing properties, not just MLS-listed inventory.
Disclosure of How Compensation Will Be Paid
The agreement should state who will pay the compensation: seller concession, buyer-direct payment, or a combination. It should address what happens if the seller offers less than the agreed amount.
What the Pre-Showing Agreement Cannot Require
The settlement also defines what the agreement may NOT contain: the agent cannot be compensated at a rate higher than what is specified in the agreement — even if the seller offers more. If the agreement specifies 2.25% and the seller offers 2.5%, the agent earns 2.25%. The excess does not go to the agent. This is a meaningful protection against the old practice of agents steering buyers toward higher-commission listings.
The Pre-Showing Agreement in Practice: Three Scenarios
| Scenario | What Happens | Buyer Protection Required |
|---|---|---|
| Buyer signs with listing agent before showing | Listing agent is named as buyer’s representative — dual agency created before first showing | No — this is the pre-showing trap. Never sign with the listing agent. |
| Buyer signs with independent buyer’s agent at 2.25%; seller offers 2.5% | Agent earns 2.25%; excess stays with seller or buyer | Yes — agent cannot exceed the agreed amount |
| Buyer signs at 2.25%; seller offers 1.5% | Buyer must pay the 0.75% difference directly, or agent reduces their fee | Agreement must specify which approach applies before signing |
| Buyer signs agreement that says "compensation equal to seller offer" | Non-compliant with settlement requirements; creates agent steering incentive | Reject this language — require a specific percentage or dollar amount |
Using the Pre-Showing Agreement as a Qualification Filter
The pre-showing agreement requirement is not just a compliance obligation for agents — it is an evaluation tool for buyers. The conversation before the first showing is the moment to ask: What is your specific experience at my price point in my target market? Do you have off-market access? Will you sign a no-dual-agency clause? What is your compensation structure and who pays it? An agent who answers these questions specifically, clearly, and without resistance is an agent worth signing with. An agent who deflects, rushes through the agreement, or presents it as a formality is an agent who has not done the pre-showing work that the settlement requires.
Own Luxury Homes® — 12-Point Agent Integrity Audit™
Own Luxury Homes® verifies every off-market specialist through our 12-Point Agent Integrity Audit™: zero dual-agency history in off-market transactions, a verified private buyer network independent of their brokerage, documented track record of recommending MLS when data supports it, and full disclosure of all compensation arrangements before engagement. No dual agency. Full seller representation. Assign a specialist now.
Ryan Brown, Principal Broker & CEO — Own Luxury Homes®
“The pre-showing agreement was designed as a consumer protection. In practice, it is also the clearest signal about what kind of agent you’re dealing with. The agents who treat it as a conversation — who walk through every clause, explain what they’re committing to, and invite you to add protections — are the agents who are confident in their value. The agents who slide it across as paperwork to sign before the showing are the ones you should not be signing with.”
Frequently Asked Questions
Can I see a property before signing a buyer representation agreement?
No — not with an MLS member agent under the post-settlement rules. The agreement must be in place before the first showing. If an agent shows you a property without a signed agreement, they are non-compliant with settlement rules.
What happens if I sign with an agent and then want to change agents?
Review the termination clause in your agreement. Most well-drafted agreements allow termination with notice (5–10 days) without cause. Properties introduced by the first agent during the agreement term may trigger a compensation obligation even after termination. Negotiate the termination and protected property clauses before signing.
Is the buyer representation agreement the same in every state?
No. The NAR settlement establishes federal baseline requirements, but individual states have their own real estate license laws that may add requirements. Massachusetts, for example, has enacted its own broker-fee rules. Your agreement must comply with both federal settlement requirements and applicable state law.
Own Luxury Homes® — Every buyer specialist walks through the full agreement before signing. 12-Point Agent Integrity Audit™. No dual agency. Assign your verified specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)