Minnesota guide

Buyer Representation Agreement After the NAR Settlement

Before a Minnesota agent can show you any home — in person or on a video tour — you have to sign a written buyer representation agreement that spells out exactly what their pay will be.

TL;DR

Before a Minnesota agent can show you any home — in person or on a video tour — you have to sign a written buyer representation agreement that spells out exactly what their pay will be. That pay has to be a real number or formula (like a flat fee, a percentage, or an hourly rate), not vague wording like 'market rate.' Sellers in Minnesota can still agree to cover your agent's fee, but it now gets negotiated directly in the offer instead of being listed up front on the MLS.

Before you start — 8 things to know

In Minnesota, you'll sign a written buyer representation agreement with an agent before they show you a single house, including virtual tours. This rule kicked in on August 17, 2024 as part of the settlement and applies to basically every brokerage you'd work with in the state.
The agreement has to state in clear numbers what the agent will be paid — for example, '2.5% of the purchase price,' '$5,000 flat,' or '$150 per hour.' Wording like 'whatever the market pays' is not allowed under the settlement rules Minnesota agents follow.
The buyer representation agreement is the document that locks in fiduciary-level representation for you — meaning the agent has to put your interests first. It also lists how long they represent you, what areas they cover, and what services they'll provide.
Sellers in Minnesota can still pay your buyer's agent — that practice didn't go away. What changed is that NorthstarMLS removed the field where sellers used to advertise that offer, so it now gets worked out between agents or written into the purchase agreement.
If a seller isn't covering enough of your agent's fee, the difference can become your responsibility. That's why the dollar amount or formula in your buyer representation agreement matters — it tells you the most you might owe out of pocket.
You can negotiate the terms before you sign. The pay amount, the length of the agreement, and the geographic area are all open to discussion — for example, you can ask for a shorter term or limit it to one city while you decide if the agent is a fit.
If you refuse to sign any buyer representation agreement, a Minnesota agent isn't allowed to show you homes. You'd either need to sign one or find a different licensee willing to work under their own terms, but no licensed agent can legally tour you around without one in place.
The Minnesota REALTORS (MAR) Exclusive Buyer Representation Agreement is the standard form most agents in the state use, and it was rewritten to match the settlement rules. If you see a non-standard form, read it carefully — the required parts (term, area, pay, services) should still be there.

The timeline — step by step

Step 1 — Initial conversation. You contact a Minnesota agent and have a buyer consultation where they explain what representation means, how they get paid, and what they'll do for you before any home tours happen.
Step 2 — Review the buyer representation agreement. The agent walks you through the Minnesota REALTORS (MAR) Exclusive Buyer Representation Agreement, including the specific pay amount or formula, the length of representation, and the geographic area covered.
Step 3 — Negotiate and sign. Before you tour any property in Minnesota — even a virtual showing — you sign the buyer representation agreement. This signing requirement has been in effect since August 17, 2024 under the settlement rules.
Step 4 — Tour homes. With the agreement signed, your agent can show you properties on NorthstarMLS or any other Minnesota . NorthstarMLS listings no longer display an offer of compensation, so your agent will reach out directly to listing agents to ask what the seller is willing to pay.
Step 5 — Find a home and write an offer. When you choose a house, your agent drafts the purchase agreement. Any seller-paid compensation for your agent gets written into that offer or a separate written agreement — not on the anymore.
Step 6 — Negotiate compensation alongside price. The seller can accept, counter, or reject the request for them to pay your agent. If they cover less than what your buyer representation agreement promises the agent, you may owe the difference at closing.
Step 7 — Close on the home. At closing, any seller-paid agent compensation is paid through the settlement statement. Anything you personally owe under the buyer representation agreement is also settled at this point.

Common questions

Do I really have to sign something just to look at a house in Minnesota?

Yes. As of August 17, 2024, Minnesota agents working with brokerages on NorthstarMLS or any regional have to get a signed buyer representation agreement from you before showing any property, including virtual tours. This came from the settlement and applies basically everywhere in the state.

How much will my buyer's agent charge me?

There is no set rate — the amount is whatever you and the agent agree to in the buyer representation agreement. It has to be written as a specific number or formula, like a percentage of the purchase price, a flat dollar amount, or an hourly rate. Vague terms like 'standard rate' or 'market rate' are not allowed under the settlement rules.

Will the seller still pay my agent in Minnesota?

They might — sellers can still agree to cover the buyer's agent fee, and many do. The change is that NorthstarMLS no longer shows that offer on the listing, so your agent has to ask the listing side directly. Anything the seller agrees to pay gets written into the purchase agreement or a separate written deal.

What if the seller won't pay my agent's full fee?

Then you're responsible for the gap — whatever your buyer representation agreement says your agent earns, minus whatever the seller agrees to pay. That's why the specific number in your agreement matters before you sign. You can ask your agent to lower their rate or negotiate with the seller to cover more.

Can I negotiate the terms before signing?

Yes. The pay amount, the length of representation, and the geographic area are all negotiable. For example, you can ask for a short trial period (like 30 days) or limit it to a single county while you decide if you want to keep working with the agent.

What if I refuse to sign anything?

A licensed Minnesota agent won't be able to show you homes under the settlement rules. You'd need to either sign an agreement or look for a different licensee willing to set up their own terms. Touring without any signed agreement isn't an option for buyers working with -member agents in the state.

What's actually in the buyer representation agreement?

Four main pieces: how long it lasts, what geographic area it covers, the specific pay amount or formula for your agent, and the services they'll provide. In return for signing, the agent owes you fiduciary-level representation, meaning they have to put your interests ahead of their own.

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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