Help! I have not been paying any attention and don't understand the new commission rules!

How Commissions Work Now: A New Era for Buyer Agent Compensation

Nearly a year has passed since the landmark National Association of REALTORS® (NAR) settlement changed the real estate industry. But here’s the surprising part—many agents are still in the dark about how their compensation actually works now. If you’re just waking up to these changes, it’s time to get current. This is not optional. It’s the new standard.

What Changed?

Before the settlement, it was common for buyer agents to receive their commission from the listing broker via the MLS. The seller would agree to a commission split, and the buyer’s agent would be compensated without direct negotiation with their client.

That model is gone.

Starting August 17, 2024 (or sooner, depending on your MLS), offers of compensation through the MLS are prohibited. This means your commission as a buyer’s agent is now directly tied to your agreement with your client—the buyer—not the seller’s broker.

How Are Commissions Handled Now?

There are three main ways buyer agents get paid under the new structure:

1. Direct Payment from the Buyer (BRBC Agreement)

This is now the default method. You, the buyer’s agent, must enter into a Buyer Representation and Broker Compensation Agreement (BRBC) before showing any homes. This agreement spells out:

Your scope of services.
The commission amount your buyer agrees to pay you.

Once signed, the buyer is contractually responsible for paying your commission. Escrow will handle disbursement at closing.

Key Point: Your compensation cannot exceed the amount specified in the BRBC. If you agreed to 2.5% with your client, that’s what you get—nothing more.

2. Buyer Requests the Seller Pay (RPA & SPBB)

The buyer can request the seller contribute to the buyer’s broker’s commission. This happens during the offer process:

Residential Purchase Agreement (RPA) section 3G(3) allows the buyer to request that the seller pay some or all of the broker’s commission.
The Seller Payment to Buyer’s Broker (SPBB) form formalizes this request.

However, this is subject to negotiation. The seller can agree, counter, or reject the request entirely. The maximum amount the buyer can request from the seller is the amount already agreed to in the BRBC .

3. Direct Negotiation with an Unrepresented Seller (FSBO)

In For Sale By Owner (FSBO) situations, if the seller has no agent, you can:

Negotiate directly with the seller for them to pay your commission.
Use the Single Party Compensation Agreement (SP) to formalize this.

Alternatively, if both parties agree, you could represent both the buyer and seller in a dual agency capacity.

Why This Matters: No Room for Error

Agents who don’t understand these changes risk working without compensation or violate compliance rules and risk being punished by regulators and/or sued by consumer advocates. The MLS no longer provides a safety net for your pay.

You must:

Always have a signed BRBC or PSRA before showing properties.
Discuss compensation early with your buyers.
Ensure the agreed compensation is accurate in escrow documents.

Remember: Your compensation is limited to what your buyer agreed to. No side deals. No exceeding the BRBC amount. And your BRBC cannot exceed 3-months.

What Happens If You Don’t Adapt?

If you’re still operating under the old model, you’re putting yourself—and your brokerage—at legal risk. Clients today are informed, and the industry spotlight is on transparency and compliance.

Here’s what you should do immediately:

Review and master the BRBC. Know where compensation terms are stated.
Practice your buyer conversations. Be confident explaining how you get paid and what value you bring.
Understand the RPA and SPBB for requesting seller contributions.

Final Thoughts: This Is About Your Value

At the end of the day, this change forces agents to demonstrate their value to buyers. You’re no longer “free” to buyers—they are agreeing upfront to pay for your expertise. Own that. Market yourself accordingly.

If you’ve been ignoring this shift, now’s the time to get serious. Ashby & Graff provides the tools (like the BRBC and compliance resources) to help you thrive in this new environment. More info here: https://help.ashbygraff.com/article/194-how-to-complete-the-brbc-form-buyer-representation-and-broker-compensation-agreement