If an agent has asked you to sign something before you’ve even walked through your first house, you’re not imagining it, that’s new, and it’s now required.
What Changed on January 1, 2025
California Assembly Bill 2992 requires every buyer’s agent to have a signed buyer-broker representation agreement in place before, or at the same time as, the buyer submits an offer on a property. In practice, a lot of agents, including Efrat, now ask for it earlier than that, often before the first showing, so both sides are working from the same understanding from day one rather than sorting it out mid-transaction.
Why This Exists Now
This came out of the 2024 NAR commission lawsuit settlement, which changed how buyer agent compensation gets disclosed and agreed to across the country. California’s version of that response is AB 2992. The short version: compensation and representation terms used to be handled more loosely, often assumed rather than written down, and the industry moved toward requiring it be explicit and signed.
Before this shift, a buyer could go through an entire home search, dozens of showings, multiple offers, without ever seeing anything in writing about how their agent got paid or what exactly they were entitled to expect from that agent. Most of the time that worked out fine, but when it didn’t, there was no document either side could point back to. AB 2992 closes that gap by making the agreement a required first step rather than something that happens informally, if at all.
What the Agreement Has to Include
Three things need to be clearly spelled out. First, the agent’s compensation and how they’re paid. Second, the scope of services the agent will actually provide, meaning what the agent is actually committing to do for you, from showings and negotiation to paperwork and closing coordination. Third, the duration, meaning how long the representation relationship lasts before either side would need to renew it or walk away. If any of those three feels vague or missing when you’re reviewing an agreement, that’s worth asking about before you sign, not after you’re already a few showings in and wondering what you actually agreed to.
Why This Isn’t a Red Flag
If you’re a first-time buyer, this can feel like an unusual ask, especially if you haven’t bought before and don’t have anything to compare it to. It isn’t unusual, and it isn’t a sign your agent is being pushy or trying to lock you in unfairly. It protects both sides by making expectations and compensation explicit upfront instead of leaving them assumed. A buyer who understands exactly what they’re agreeing to, and an agent who has clear terms in writing, both avoid the kind of misunderstanding that used to surface later in a transaction when it’s harder to fix.
What to Check Before You Sign
Look at the term length and make sure it’s reasonable for your situation, not open-ended in a way that feels restrictive. If you’re just starting to look at homes casually, a shorter initial term with the option to extend makes more sense than a long commitment before you know if the working relationship fits. Make sure the compensation section is written in plain terms you actually understand, not just legal shorthand you’d need a second opinion to decode. And ask questions. A good agent expects questions at this stage and should be able to answer them clearly without making you feel rushed or like you’re being difficult by asking. Signing an agreement doesn’t mean you’ve given up the ability to ask for clarity first, and a buyer who reads the document carefully and asks about anything unclear is doing exactly what they should be doing.
If you’re starting a home search and want to understand exactly what a buyer-broker agreement with Efrat would look like before your first showing, get in touch and she’ll walk you through it.
