If you are buying a home in Orange County, the way buyer agents are paid changed significantly in 2024. Here is what that means for you in practice.
What changed on August 17, 2024
- Offers of compensation left the MLS. Listing agents can no longer advertise buyer-broker compensation on the MLS.
- Written agreements come first. Buyers working with an MLS-participant agent sign a written agreement before touring a home. It states what the agent will be paid, and that amount must be objectively clear — not open-ended.
Who pays the buyer’s agent now?
It depends on negotiation. A seller may still agree to pay some or all of your agent’s compensation, you may ask for a seller concession in your offer, or you may pay some of it yourself. A good agent will explain these options before you write an offer.
Are buyer rebates and credits allowed in California?
California generally permits a buyer’s broker to share part of its compensation with the buyer when it is agreed in writing and properly disclosed. In practice it is usually applied as a credit toward closing costs, and your lender must approve it — loan programs limit how much a buyer can receive. Credits cannot be paid secretly after closing.
What to ask any buyer’s agent
- What exactly does your agreement require me to pay, and when?
- Can the agreement be limited to a time period or specific property?
- How will you negotiate seller-paid compensation or concessions?
- Do you offer any credit toward my closing costs, and in what situations?
Frequently asked questions
Do I have to sign a buyer agreement before touring?
If you work with an agent who is an MLS participant, a written agreement is generally required before touring a home under the post-2024 practice rules.
Can a seller still pay my agent?
Yes. Sellers can agree to pay buyer-broker compensation or offer concessions; it is negotiated, not advertised on the MLS.