If you are planning to buy a home in 2026, you may have noticed something different about the process. Before you can tour that beautiful three-bedroom house in Cerritos or put an offer on a condo in Buena Park, your agent is likely asking you to sign a document called a Buyer Representation and Broker Compensation Agreement (BRBC).
This change has caused some confusion among first-time homebuyers and sellers alike. Is it a commitment to buy? Are you locked in forever? At Maya Team Inc., we believe that an educated consumer is a confident consumer. As your Real Estate and Mortgage Broker and primary Mortgage Loan Originator (MLO), I, Rony Velasquez, along with our Realtor® and Office Manager Mona Bottros, want to ensure you have the full picture before you start your home-search journey.
The Short Answer: What Is This New Requirement?
In short, California law (specifically Assembly Bill 2992) now requires real estate agents to have a written agreement with a buyer before they can represent them in an offer. Additionally, industry practices now mandate that these agreements be signed before touring a property. This agreement clearly outlines what services your agent will provide, how they are paid, and how long you will work together. For individual buyers, this initial agreement cannot last longer than three months (approximately ninety days).
What Is AB 2992 and Why Does It Matter to You?
Assembly Bill 2992 (AB 2992) is a piece of California legislation that went into full effect to increase transparency in real estate transactions. Historically, buyer representation was often handled with a "handshake" until an offer was made. This sometimes led to confusion regarding who was paying the agent and what specific duties the agent owed to the buyer.
Under AB 2992, the state has mandated that:
- Written Agreements are Mandatory: You must have a written contract in place no later than the execution of an offer to purchase.
- Clear Compensation: The agreement must state exactly how much the broker will be paid. This can no longer be a vague "to be determined" amount.
- Defined Services: The contract must describe the services the agent will perform, such as searching for homes, arranging tours, and negotiating terms.
By making these terms clear upfront, the law protects you from unexpected costs and ensures that you know exactly who is working for your best interests.
The "Ninety-Day Rule" for First-Time Homebuyers
One of the most significant parts of the new rules is the time limit for individual buyers. If you are a person (not a corporation or LLC) looking for a home, your initial representation agreement with an agent cannot exceed three months.
This is actually a win for consumers! It means you are not "trapped" in a long-term contract with an agent who might not be the right fit for you.
- No Automatic Renewals: After those ninety days are up, the contract expires. It does not automatically renew.
- Written Extensions: If you love working with your team and want to continue, you must sign a written extension, which also cannot exceed ninety days.
- Freedom of Choice: If after three months you feel you need a different approach, you are free to explore other options without being tied to a year-long commitment.
Why Do I Have to Sign This Before Touring?
You might wonder why we ask for a signature before we even show you the first house. While the law (AB 2992) says the agreement must be signed by the time you make an offer, most real estate associations and brokerages now require it before touring.
This shift occurred following a national settlement involving the National Association of REALTORS®. The goal is to ensure that before an agent spends time showing you homes: and before you share your private financial information with them: both parties understand the professional relationship. It establishes that we are your advocates and that our compensation is transparent and agreed upon by you.
What Is Included in a Buyer Representation Agreement?
When you sit down with Mona Bottros and me to review your agreement, you will see several key sections. We want you to understand every word.
1. Description of Services
We don't just "open doors." As your professional consultants, we provide a wide range of services including:
- Searching for properties that meet your specific criteria.
- Analyzing market data to ensure you don't overpay.
- Coordinating with lenders to manage your mortgage loan process.
- Negotiating repairs, credits, and closing costs.
2. Broker Compensation
This is often the part that makes buyers nervous, but it shouldn't! The agreement will specify a fee, which could be a percentage of the purchase price or a flat fee. For example, if a home is priced at five hundred thousand dollars, the agreement might specify a commission of two and a half percent.
It is important to note that while the agreement sets the fee, we can still negotiate with the seller to have them pay that commission on your behalf. Most sellers still offer some form of compensation to buyer agents to attract the largest pool of qualified buyers.
3. Termination Rights
The agreement isn't a prison sentence. It includes terms on how either you or the brokerage can end the relationship if things aren't working out. This ensures that the professional relationship remains mutually beneficial.
A Checklist for Navigating the New Rules
If you are starting your home search today, use this checklist to stay on track:
- Interview your agent: Make sure they are experienced. Between Mona and myself, we have over twenty-two years of experience and have closed over three thousand transactions.
- Review the Disclosure: Before signing the representation agreement, you must receive a disclosure form explaining the different types of agency relationships.
- Negotiate the Terms: Don't be afraid to ask questions about the commission or the length of the contract.
- Check the Date: Ensure the expiration date is no more than ninety days from today.
- Get a Copy: Always keep a signed copy for your records.
Is This a Risk for Buyers?
Some buyers worry that signing an agreement means they must pay out of pocket. In reality, the risk of not having an agreement is much higher. Without a written contract, you may not have a clear advocate in a transaction involving hundreds of thousands of dollars. Whether you are looking at a home for seven hundred fifty thousand dollars or one million dollars, you deserve the protection of a legal contract that defines your agent's loyalty to you.
At Maya Team Inc., we specialize in helping first-time homebuyers navigate these complexities. We simplify the "legalese" so you can focus on finding the right home for your family.
Do You Have Questions About Your Next Tour?
The real estate market is changing, but the goal remains the same: getting you into the home of your dreams with the best possible terms. If you are feeling overwhelmed by the talk of AB 2992 or buyer agreements, let’s talk. We can walk you through the process step-by-step.
Write a comment if you find this useful! Are you currently looking for a home? What has your experience been with these new agreements?
For direct assistance or to schedule a consultation, you can reach me at:
Mobile: 562-762-9634
Email: mayateaminc@gmail.com
Let's make 2026 the year you become a homeowner!
Rony Velasquez
Real Estate and Mortgage Broker | Realtor® | Mortgage Loan Originator (MLO)
Mona Bottros
Realtor® and Office Manager
