California guide

California commission and fees: what changed after the NAR settlement

Buyer agreements, who pays the buyer's agent, and the new disclosure rules every California buyer should understand.

Reading as buyer.

TL;DR

When you buy a home in California, the commission your agent earns is negotiated between you and that agent's brokerage, not set by any industry standard. Federal antitrust law makes it illegal for competing brokerages to agree on rates, so every brokerage must price its own services independently. That means you can shop agents and negotiate the buyer-side commission just like any other service fee.

Before you start — 7 things to know

  • Commission rates for buyer's agents in California are set by each brokerage on its own and are always negotiable between you and the agent you hire.

  • There is no legal 'standard' or 'customary' buyer-agent commission in California — anyone who tells you otherwise is describing a habit, not a rule.

  • Federal antitrust law (the Sherman Act) makes it illegal for competing brokerages to agree on what to charge buyers, so each agent must quote a rate they set on their own.

  • After the 2024 settlement, buyers in California sign a written buyer-broker agreement that spells out their agent's compensation before touring homes.

  • You can ask multiple agents for written commission quotes and pick the one whose price and value make sense — comparison shopping is exactly what antitrust law is designed to protect.

  • Buyer-agent pay can be structured as a flat fee, a percentage of the purchase price, or an hourly rate — the structure itself is negotiable in California.

  • Since 2024, offers of buyer-agent compensation can no longer be advertised inside the , so you may need to ask the listing side directly whether the seller will contribute to your agent's fee.

The timeline — step by step

  1. Interview two or three California buyer's agents and ask each one to put their commission rate and services in writing.

  2. Negotiate the buyer-broker agreement: confirm the percentage or flat fee, the length of the contract, and what happens if the seller does not cover the full amount.

  3. Sign the written buyer-broker agreement before touring homes in person, as required after the 2024 settlement.

  4. When you find a home, have your agent ask the listing side in writing whether the seller will pay any of your agent's commission as part of the offer.

  5. Build the agreed buyer-agent compensation into your purchase offer or your closing costs so everyone knows who is paying what before contracts are signed.

  6. At closing in California, the escrow officer pays your buyer's agent's brokerage from the funds outlined in the purchase contract.

Common questions

Is there a standard buyer's agent commission in California?
No, there is no legal or standard rate. Federal antitrust law requires every brokerage in California to set its own commission independently, and you can negotiate the rate with any agent you interview.
Can two California brokerages agree on what to charge buyers?
No, that would be illegal price-fixing under the Sherman Act. Competing brokerages must price their services on their own, and agreements between them about commission levels are exactly the kind of conduct antitrust regulators prosecute.
Do I have to sign a buyer-broker agreement before touring homes?
Yes. Since the 2024 settlement, California buyers working with an agent affiliated with must sign a written agreement spelling out the agent's compensation before touring homes in person.
Will the seller still pay my buyer's agent in California?
Sometimes, but it is no longer assumed. Offers of buyer-agent compensation cannot be advertised inside the anymore, so you or your agent has to ask the listing side directly and write any seller contribution into the purchase offer.
Can I negotiate my buyer's agent's commission down?
Yes, the rate and structure are negotiable in California. You can ask for a lower percentage, a flat fee, or a credit back at closing — every brokerage decides for itself how flexible to be.
What if an agent says everyone charges the same buyer-side rate?
Treat that as a red flag and shop around. Antitrust law specifically forbids competing brokerages from coordinating rates, and 'everyone charges the same' is the kind of claim plaintiffs cite in price-fixing complaints.

Glossary

2 terms
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

  1. [1]
  2. [2]

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