Arizona guide

Arizona Buyer-Broker Employment Agreement Post-NAR Settlement

In Arizona, you must sign a written agreement with a buyer's agent before they can show you any home listed on the MLS.

TL;DR

In Arizona, you must sign a written agreement with a buyer's agent before they can show you any home listed on the . This agreement spells out exactly what you'll pay your agent and what services they'll provide. The good news: if the seller offers to cover your agent's fee, that money can offset what you owe — but the written agreement locks in your baseline commitment.

Before you start — 8 things to know

  • You must sign a written Buyer-Broker Exclusive Employment Agreement ( shorthand: BBEA) before your agent can show you any home on the in Arizona — including virtual tours. This rule has been in effect since August 17, 2024.

  • The agreement must state your agent's compensation as a specific dollar amount or a clear formula — for example, '2.5% of the purchase price.' A vague line like 'whatever the seller offers' does not meet Arizona's requirement.

  • The BBEA sets the maximum you're on the hook to pay your agent. If the seller agrees to cover part or all of that fee during negotiations, your out-of-pocket cost can drop to zero — but the agreement defines your baseline obligation.

  • The Arizona Association of Realtors publishes the standard BBEA form. Your agent should walk you through the compensation section line by line before you sign — it's legally binding.

  • The agreement has a set term (how long it lasts) and a geographic scope (which areas it covers). Read both sections so you know how long you're committed and whether you can use a different agent in another city.

  • If an agent shows you a home without a signed BBEA, they are violating rules and can be fined. You can report this to or the Arizona Department of Real Estate.

  • Agent compensation is now fully negotiable in Arizona. You can negotiate the rate, the formula, or ask whether a flat fee makes more sense than a percentage — before you sign anything.

  • Arizona law (A.R.S. §32-2155) requires agents to disclose how they are being compensated. Ask for a written breakdown if anything in your BBEA is unclear.

The timeline — step by step

  1. Before your first home tour: your agent presents the BBEA. Review the compensation amount, the term length, and the geographic area covered. Do not agree to tour any -listed home until this is signed.

  2. Negotiate the fee: compensation listed in the BBEA is not set in stone before you sign. Ask questions, compare rates, and make sure the number reflects what you've agreed on verbally.

  3. Sign the BBEA: once you're satisfied with the terms, sign the agreement. You are now in a formal working relationship with your buyer's agent for the agreed term and geography.

  4. Tour homes: your agent can now legally show you -listed homes in Arizona. Every showing — in-person or virtual — is covered under the signed BBEA.

  5. Make an offer: when you find a home, your agent will negotiate with the listing side. Part of those negotiations can include asking the seller to cover your agent's fee, which would reduce your direct out-of-pocket cost.

  6. Close on the home: at closing, agent compensation is paid according to what was agreed — whether the seller covered it, you covered it, or both parties split it. The BBEA amount is the ceiling on your obligation.

Common questions

Do I have to sign an agreement before just looking at a house in Arizona?
Yes. In Arizona, any agent who is a member of an (like ARMLS) must have you sign a written buyer-broker agreement before showing you any home on that — even a quick walkthrough. This rule went into effect August 17, 2024. If an agent skips this step, they are breaking rules.
Does signing this agreement mean I have to pay my agent out of my own pocket?
Not necessarily. The agreement establishes what you've agreed to pay, but during the offer process your agent can negotiate for the seller to cover that fee. If the seller agrees, you may owe nothing directly. However, if the seller declines, you'd be responsible for the amount in your agreement.
Can I negotiate what goes into the agreement?
Absolutely. The compensation amount, the term length, and the geographic scope are all negotiable before you sign. Arizona law (A.R.S. §32-2155) requires agents to disclose their compensation, but the rate itself is set by negotiation between you and your agent — not by any fixed rule.
What happens if I want to switch agents after I've signed?
The BBEA has a set term and sometimes an early-termination clause. Review those sections before signing so you understand your options. If you want to work with a different agent, you may need to wait for the term to expire or negotiate a mutual release with your current agent.
Is this an Arizona-only rule or does it apply everywhere?
The written buyer-broker agreement requirement was triggered by the settlement that took effect nationally on August 17, 2024. All -member agents across the U.S. are required to follow it. Arizona's ARMLS adopted the rule on that same date, so the requirement applies statewide for -listed properties.
What exactly should the agreement include?
Arizona's standard BBEA must spell out four things: the services your agent will provide, how much they'll be paid (as a specific dollar amount or a clear formula), how long the agreement lasts, and which geographic area it covers. If any of those four things is missing or vague, the agreement doesn't meet the requirement.

Glossary

3 terms
RECAD — Real Estate Consumer's Agency and Disclosure
The form that lays out, in plain terms, the agency relationship between you and the agent — whether they represent you, the seller, or both.
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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