Michigan guide

Michigan Buyer Agency Agreements Post-NAR Settlement: What Changed August 17, 2024

Q: Does this rule apply to every agent in Michigan?

Technically the MLS-tour rule only binds Michigan Realtors members, since it comes from NAR settlement rules tied to MLS participation. A licensed agent who isn't a Michigan Realtors member isn't required to follow it. But the agency disclosure law (MCL §339.2517) applies to every Michigan-licensed agent, member or not.

TL;DR

Since August 17, 2024, if you're buying a home in Michigan and your agent is a Michigan Realtors member, you have to sign a written buyer agency agreement that spells out how much your agent gets paid before they can tour any home listed on the MLS with you. The agreement has to use a real number or formula, not vague language like 'whatever the seller offers.' Sellers can still chip in toward your agent's pay, but that gets worked out in the purchase contract, not through the MLS.

Before you start — 8 things to know

Before you tour any home listed on the with a Michigan Realtors agent, you'll sign a written buyer agency agreement that names a specific dollar amount or percentage your agent will be paid. This is required nationwide under the settlement that took effect August 17, 2024.
Your agent's pay can't just say 'whatever the seller is offering.' The settlement requires a real number or formula in the buyer agency agreement, so you know upfront exactly what you've agreed to pay.
Most Michigan agents use the Michigan Realtors Exclusive Buyer Agency Agreement. It locks you in with that agent for a specific area and time period, so read the geographic scope and length carefully before signing.
The seller or their listing broker can still offer to pay your agent — that part didn't go away. What changed is that the offer can't appear in the anymore; it's now handled in the purchase agreement or a separate written offer from the listing broker.
If the seller offers less than what you agreed to pay your agent, you could owe the difference out of pocket. Ask your agent before signing how that gap is handled — the agreement should spell it out.
Michigan law (MCL §339.2517) requires your agent to give you an agency disclosure form before you share any private information with them, like your budget or what you'll pay. This comes before the buyer agency agreement, not after.
Not every Michigan-licensed agent is a Michigan Realtors member. If your agent isn't, the rule about a pre-tour signed agreement doesn't technically apply to them — but Michigan's agency disclosure law still does, and asking for a written agreement upfront is still smart.
Everything about your agent's pay is negotiable, including the rate, the length of the agreement, and the geographic area covered. Don't assume the first number you're shown is fixed — ask.

The timeline — step by step

Interview agents and pick one you trust. Nothing has to be signed yet — this is just a conversation about how they work and what they charge.
Your Michigan agent gives you the agency disclosure form required by MCL §339.2517. You sign or initial it before sharing anything private like your budget or timeline.
Before any tour of an -listed home, you and your agent sign a written buyer agency agreement (usually the Michigan Realtors Exclusive Buyer Agency Agreement) that states exactly how much they get paid and for how long. The settlement effective August 17, 2024 makes this a hard requirement for Michigan Realtors members.
You start touring homes with your agent under the signed agreement. The compensation number you agreed to is locked in for any home you buy inside the agreement's geographic area and time window.
When you find a home you want, your agent finds out what (if anything) the seller's side is offering to pay them. That offer now comes from the listing broker directly, not from the system.
You write the offer. If the seller's contribution covers your agent's full fee, great — you owe nothing extra. If it falls short, the gap is handled the way your buyer agency agreement says, often by asking the seller to cover it in the purchase contract.
At closing, your agent's compensation is paid out per the purchase agreement and your buyer agency agreement. Any shortfall you agreed to cover would come out of your funds at the closing table.

Common questions

Do I really have to sign something just to walk through a house?

If your agent is a Michigan Realtors member and the home is listed on the , yes — they're required to have a signed buyer agency agreement with you before the tour. This rule kicked in August 17, 2024 as part of the settlement. The agreement can be limited in scope (one home, one day) if you're not ready to commit longer-term.

Who actually pays my agent now?

You are the one on the hook for your agent's pay under the buyer agency agreement you sign. But the seller or their broker can still offer to cover part or all of it — that just gets negotiated in the purchase contract instead of the . In practice, many Michigan sellers still contribute, so out-of-pocket cost depends on the deal.

What happens if the seller offers less than what I agreed to pay my agent?

You'd owe the difference unless your buyer agency agreement says otherwise. That's why it's important to talk through that scenario before signing and to look at how your agreement handles a gap. You can also ask the seller to cover the shortfall as part of your offer.

Can I negotiate what my agent charges?

Yes — commissions and agent fees are negotiable, and that's been true the whole time. The settlement actually pushed this into the open by requiring a specific number in writing instead of vague language. Ask about the rate, the length of the agreement, and whether you can limit it to just one home before you commit.

What's the difference between the agency disclosure and the buyer agency agreement?

The agency disclosure is a Michigan-specific form (required by MCL §339.2517) that explains who your agent legally represents. You get it before sharing anything private. The buyer agency agreement comes after and is the actual contract that makes the agent work for you and spells out their pay.

What if I don't want to be locked in with one agent?

Talk to your agent about a short-term or single-property agreement instead of a long exclusive one. The Michigan Realtors Exclusive Buyer Agency Agreement is the default form, but the length and the area it covers are negotiable. You can also ask for a non-exclusive version if that fits better.

Does this rule apply to every agent in Michigan?

Technically the -tour rule only binds Michigan Realtors members, since it comes from settlement rules tied to participation. A licensed agent who isn't a Michigan Realtors member isn't required to follow it. But the agency disclosure law (MCL §339.2517) applies to every Michigan-licensed agent, member or not.

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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