Indiana guide

Indiana Buyer Brokerage Agreements Post-NAR Settlement (August 2024)

Q: Can I just tour a few homes first and decide on an agent later?

No. Since August 17, 2024, any Indiana agent tied to the MLS has to get your signature on a written buyer agreement before showing you a home, even on a video walkthrough. This rule came out of the NAR settlement and is now baked into local MLS rules.

Q: Is this an Indiana law or just a Realtor rule?

It started as part of the national NAR settlement, not an Indiana state law. But because almost every agent in Indiana works through an MLS like MIBOR, and those MLSs now require the written buyer agreement, it acts like a rule for nearly every agent you'll meet.

Since August 17, 2024, you have to sign a written agreement with a real estate agent before they can show you any home in Indiana — even on a video tour.

TL;DR

Since August 17, 2024, you have to sign a written agreement with a real estate agent before they can show you any home in Indiana — even on a video tour. The agreement spells out exactly how much your agent will get paid and how, so the money side is settled before you start looking. This rule comes from the settlement and now applies to almost every agent because the local requires it.

Before you start — 8 things to know

You'll sign a written buyer agreement before any agent shows you a home in Indiana, whether the tour is in person or over video. This kicked in on August 17, 2024 as part of the settlement.
The agreement has to lay out exactly how your agent gets paid — a flat fee, a percentage of the price, or an hourly rate — before you start touring homes.
Your agent can't be paid more than the amount written in your agreement, no matter where the money comes from. So the number you sign is the cap.
The seller can still cover your agent's fee, but only up to what you and your agent agreed to. If the seller offers less, you and your agent need a written plan for the gap before you make an offer on the home.
The agreement should also say how long it lasts, what areas or properties it covers, and what services your agent will actually provide.
Ask for a clear cancellation clause so you're not stuck in a long contract if your financing falls through, you move cities, or you simply decide to put buying on hold.
In Indiana, this requirement is enforced by the local — for example MIBOR in the Indianapolis area — so almost every agent you'll meet has to follow it.
Don't sign the buyer agreement on the spot at a showing. Take it home, read the payment and cancellation sections carefully, and ask questions before you commit.

The timeline — step by step

Interview an Indiana agent you're thinking about working with, before any home tours are scheduled.
Talk through how that agent gets paid up front — flat fee, percentage, or hourly — and what services that pays for.
Sign a written buyer brokerage agreement before the first showing, in person or virtual. This step is required by the settlement rules that Indiana s adopted in August 2024.
As you tour homes, check each listing for whether the seller is offering to cover the buyer's agent fee, and how much.
If the seller's offer doesn't fully cover what you agreed to pay your agent, decide with your agent how to handle the gap — ask the seller to cover more in your offer, negotiate the price, or plan to pay the difference yourself.
Submit your offer on the Indiana home with the compensation plan clearly worked out, so there are no surprises during negotiation.
Close on the home. Your agent is paid based on the amount and method written in the buyer agreement you signed at the start.

Common questions

Do I have to pay my agent out of pocket now?

Not necessarily. The seller can still agree to cover your agent's fee in many Indiana deals, but only up to the amount you set in your written buyer agreement. If the seller's offer is lower than your agreed rate, you'll need a plan — either ask the seller to cover more in your offer, or pay the gap yourself.

Can I just tour a few homes first and decide on an agent later?

No. Since August 17, 2024, any Indiana agent tied to the has to get your signature on a written buyer agreement before showing you a home, even on a video walkthrough. This rule came out of the settlement and is now baked into local MLS rules.

What goes into a buyer brokerage agreement besides how much my agent gets paid?

It should cover how long the agreement lasts, what areas or properties it applies to, the services your agent will provide, and how either side can end the contract early. Read each section before you sign, and don't be shy about asking for changes if something feels off.

What if I want to end the agreement halfway through my home search?

Look for the cancellation section in your buyer agreement — that's where the exit rules live. A good Indiana agreement gives you a reasonable way out if your financing falls through, your life changes, or the working relationship just isn't clicking.

Is this an Indiana law or just a Realtor rule?

It started as part of the national settlement, not an Indiana state law. But because almost every agent in Indiana works through an like MIBOR, and those MLSs now require the written buyer agreement, it acts like a rule for nearly every agent you'll meet.

Can my agent and I agree to a flat fee instead of a percentage?

Yes. The buyer agreement can use a flat dollar amount, a percentage of the home's price, or an hourly rate — whatever you both agree to in writing. Just make sure the number and the payment method are crystal clear before you sign anything.

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

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