If you have been scrolling through Zillow or dreaming about your first home lately, you might have noticed a major shift in how the process starts. In years past, you could simply call up an agent and meet them at a property for a quick tour. Today, that "no-strings-attached" viewing is a thing of the past.
Starting in late two thousand twenty-four and solidified by California’s Assembly Bill two thousand nine hundred ninety-two in early two thousand twenty-five, the rules of the game have changed. Before you step foot into a home for a tour, you are likely going to be asked to sign a Buyer Representation Agreement.
At Maya Team Inc., we believe that an educated buyer is a successful buyer. We know that being asked to sign a legal document before even seeing a kitchen can feel intimidating, but these rules were actually designed to protect you.
In this guide, we are going to break down everything you need to know about the new "AB twenty-nine ninety-two" rules, why these agreements are now mandatory, and how they ensure you get the professional representation you deserve.
What is a Buyer Representation Agreement?
The Short Answer: A Buyer Representation Agreement is a written contract between you (the buyer) and your real estate broker. It outlines the specific services your agent will provide, how much they will be paid for those services, and how long the professional relationship will last.
Think of it as a "hiring agreement." When you hire a professional for any other service: like a lawyer or an accountant: you sign a contract that clarifies what they are doing for you and what it costs. The real estate industry has finally moved to this same model of transparency.
Why Did the Rules Change? (AB 2992 and the NAR Settlement)
For decades, the way buyer’s agents were paid was often a bit of a mystery to the average consumer. Commissions were typically listed in the Multiple Listing Service (MLS) and paid by the seller to the buyer’s agent. While this often meant the buyer didn't have to pay their agent "out of pocket," it sometimes led to a lack of clarity about who was working for whom and exactly what the costs were.
Two major events changed this:
- The NAR Settlement (two thousand twenty-four): A nationwide legal settlement required that agents who use the MLS must have a written agreement with buyers before touring a home.
- California AB twenty-nine ninety-two (two thousand twenty-five): California took it a step further by passing a state law. This law makes these agreements mandatory and adds strict consumer protections to ensure you aren't locked into long-term contracts that don't serve your interests.
The "Three-Month Rule": Your Biggest Protection
One of the most important parts of California’s new law is the three-month limit. Under AB twenty-nine ninety-two, a buyer representation agreement for a residential property cannot have an initial term longer than three months.
Here is what that means for you:
- No Lifetime Contracts: You cannot be forced to sign a one-year exclusive deal right off the bat.
- No Automatic Renewals: The agreement cannot "auto-renew." Once the three months are up, if you want to keep working with that agent, you must sign a new, dated extension.
- Flexibility: This allows you to "test drive" the relationship. If the agent isn't a good fit or isn't providing the level of service you expected, you aren't stuck for the long haul.
At Maya Team Inc., we love this rule. It pushes us to provide incredible value every single day because we know our clients have the freedom to choose who represents them.
Understanding Negotiable Compensation
The biggest question most first-time homebuyers have is: "Do I have to pay my agent now?"
The answer is: Everything is negotiable.
Your agreement must clearly state exactly how your agent is compensated. This could be a percentage of the sale price, a flat fee (such as five thousand dollars or ten thousand dollars), or even an hourly rate.
However, just because you agree on a fee with your agent doesn't mean you are the one who has to pay it out of your own pocket. You can still ask the seller to cover your agent's commission as part of your offer. In many cases, sellers are still happy to do this because it helps get their home sold.
The difference now is transparency. You will know exactly what your agent is making before you even write an offer. There are no more "hidden" fees.
What Happens During the "Touring" Phase?
You might be wondering, "What if I just want to see one house? Do I still have to sign an agreement?"
Yes. Even if you just want to see a single property, your agent is providing a professional service. They are navigating the MLS, coordinating with the seller, and using their expertise to evaluate the home.
However, you can sign a "Limited" or "Property-Specific" agreement. This means you are only hiring the agent for that specific house or for a single day. You aren't committed to them for your entire home search, but the law is satisfied because the relationship and compensation are documented for that specific tour.
Why You Should Embrace the Agreement
While it might feel like more paperwork, having a signed agreement is actually a massive win for buyers. Here is why:
- Fiduciary Duty: Once the agreement is signed, the agent’s legal "fiduciary duty" to you is clearly established. They are legally bound to put your interests above their own.
- Defined Services: The agreement lists exactly what the agent will do for you: from finding listings to negotiating repairs and managing the escrow process.
- No Surprises: You won't get to the end of a deal and find out there is a fee you weren't expecting. You’ve already agreed on the numbers.
- Professionalism: It ensures you are working with a serious professional. At Maya Team Inc., we take our roles seriously. Rony Velasquez, our Mortgage Loan Originator (MLO) and Broker, and Mona Bottros, our Realtor® and Office Manager, work in tandem to ensure both your financing and your home search are handled with expert care.
A Checklist for First-Time Buyers
Before you sign any buyer agreement, we recommend checking these items off your list:
- Check the Term: Is the agreement for three months or less? (Unless you are buying as a corporation or LLC, it must be).
- Understand the Fee: Is the compensation clearly spelled out in a way you understand? (e.g., "two point five percent of the purchase price" or "seven thousand, five hundred dollars").
- Verify the Agent: Is the person you are signing with a licensed professional? (You can check the DRE website).
- Ask About the Scope: Does the agreement cover all of California, or just the specific city or neighborhood you are looking in?
- Get Your Pre-Approval Ready: Before you start touring, you need to know your budget. As a Mortgage Loan Originator, Rony Velasquez can help you determine exactly what you can afford so you don't waste time touring homes outside your price range.
How Maya Team Inc. Can Help
Navigating these new rules doesn't have to be stressful. We specialize in helping first-time homebuyers understand the landscape of two thousand twenty-six.
When you work with Maya Team Inc., you aren't just getting an agent; you are getting a dedicated team.
- Rony Velasquez (Real Estate and Mortgage Broker, Realtor®, and MLO) handles the complex world of financing, ensuring your loan is solid and your offer is competitive.
- Mona Bottros (Realtor® and Office Manager) brings over twenty-two years of experience and over three thousand closed transactions to the table, ensuring your home search and escrow process are seamless.
We prioritize education over sales. We will sit down with you, explain every line of the Buyer Representation Agreement, and make sure you feel one hundred percent comfortable before we ever ask you to pick up a pen.
Conclusion
The real estate market in two thousand twenty-six is more transparent than ever before. While the requirement for Buyer Agreements might seem like a hurdle, it is actually a bridge to a better, more professional relationship between you and your agent.
By understanding AB twenty-nine ninety-two and the "Three-Month Rule," you can shop for a home with confidence, knowing that your rights are protected and your agent is working exclusively for you.
Do you have questions about the new buyer rules or are you ready to start your home search? Write a comment below or send us a message! We would love to hear your thoughts on these changes and help you navigate your next move.
Contact Maya Team Inc. Today
For expert guidance on your real estate and mortgage needs, reach out to us. We are here to help you achieve your dream of homeownership with clarity and confidence.
Mobile (Rony Velasquez): 562-762-9634
Email: mayateaminc@gmail.com
Website: https://nas.io/mayateaminc
