Montana guide

Buyer-Broker Agreements in Montana Post-NAR Settlement

Q: Do I really have to sign something before just looking at a house in Montana?

Yes. Since August 17, 2024, the NAR settlement requires a written buyer-broker agreement before your agent shows you any home in Montana, including virtual tours, when they use a participating MLS. Almost every Montana brokerage uses a participating MLS, so this applies to nearly any agent you would pick.

Q: Can my agent's pay be written as something vague like "market rate" or "3 percent or whatever the seller offers"?

No. The NAR settlement requires the amount to be specific — a flat dollar amount, a fixed percent, or a defined formula. Open-ended language is not allowed, and your agent cannot collect more than what the agreement says.

Q: What if my agent skips the written agreement?

They can be suspended from the MLS, which would block them from showing you listings or submitting offers for you. They could also face state-level discipline for failing to give you the Montana agency disclosure required by MCA 37-51-314.

In Montana, your agent has to sign a written buyer-broker agreement with you before they show you any home, in person or virtually.

Reading as buyer.

TL;DR

In Montana, your agent has to sign a written buyer-broker agreement with you before they show you any home, in person or virtually. The agreement has to spell out exactly how much your agent gets paid — a flat dollar amount, a set percent, or a clear formula, never an open-ended number. Montana also has its own state law that requires a separate agency disclosure form before you sign any offer, so you should expect two pieces of paperwork up front.

Before you start — 11 things to know

Since August 17, 2024, the settlement requires a written buyer-broker agreement in Montana before your agent shows you any home, whether the tour is in person or online.
This rule comes from the settlement, not from a Montana statute, but it works as a mandatory rule for every Montana agent who uses a participating — which covers Billings, Missoula, Bozeman, Great Falls, Helena, and the rest of the state.
The agreement has to clearly state how much your agent will be paid as a specific dollar amount, a fixed percent, or a defined calculation — open-ended pay is not allowed.
Your agent cannot collect more compensation than the amount written in the agreement, no matter where the money ends up coming from.
Montana law (MCA 37-51-314) separately requires your agent to give you a written agency disclosure acknowledgment before you sign any offer to buy a home.
The buyer-broker agreement and the Montana agency disclosure form are not the same — the agreement sets up the working relationship and pay, and the disclosure form confirms what kind of agent is representing you.
The seller's listing may still offer to cover some or all of your agent's pay, and that offer can reduce or fully cover what you owe — but only up to the amount in your buyer agreement.
If the seller offers less cooperating compensation than your buyer agreement says your agent gets paid, you are on the hook for the difference at closing, so understand the full pay structure before you sign.
You can ask the seller to cover your agent's pay as a concession in your written offer, which is a common way to fund the buyer's side in Montana right now.
Every major Montana REALTOR association has updated its buyer agreement forms to include the -compliant pay language, so the form your agent hands you should already meet the rules.
An agent who skips the written agreement can be suspended from the , which would stop them from showing you listings or sending offers on your behalf.

The timeline — step by step

At your first real conversation with an agent in Montana, you complete the state agency disclosure form so you both know what kind of agency relationship you are starting.
Before any home tour — in person or virtual — you and the agent sign the written buyer-broker agreement.
The agreement fills in your agent's exact pay as a dollar amount, fixed percent, or defined formula, plus the services they will provide and how long the agreement lasts.
With both forms signed, you start touring homes under the agreed terms.
When you write an offer, you confirm Montana's agency disclosure acknowledgment again and decide whether to ask the seller for a concession to help cover your agent's pay.
If the seller's listing offers cooperating compensation, that money goes toward your agent's pay up to the amount in your agreement.
At closing, your agent is paid exactly the amount written in the buyer agreement — never more — and you cover any gap the seller did not.

Common questions

Do I really have to sign something before just looking at a house in Montana?

Yes. Since August 17, 2024, the settlement requires a written buyer-broker agreement before your agent shows you any home in Montana, including virtual tours, when they use a participating . Almost every Montana brokerage uses a participating MLS, so this applies to nearly any agent you would pick.

Can my agent's pay be written as something vague like "market rate" or "3 percent or whatever the seller offers"?

No. The settlement requires the amount to be specific — a flat dollar amount, a fixed percent, or a defined formula. Open-ended language is not allowed, and your agent cannot collect more than what the agreement says.

Who actually pays my agent in Montana under these rules?

It is flexible. The seller's listing can offer to cover some or all of your agent's pay, you can ask the seller for a concession in your offer, or you can pay your agent directly. The total just cannot go above the amount in your buyer-broker agreement.

Is the buyer-broker agreement the same thing as Montana's agency disclosure form?

No, they are two different documents. Montana law (MCA 37-51-314) requires the agency disclosure acknowledgment before you sign an offer, and it explains the type of agency relationship you have. The buyer-broker agreement is the settlement document that sets the pay and services. You should expect to sign both up front.

What happens if the seller offers less to my agent than my agreement says?

You owe the difference at closing. That is why it matters to understand the full pay number in your buyer agreement before you sign — if the seller only covers part of it, the rest comes from you, often through a seller concession written into your offer.

Can I negotiate the pay and length of the buyer agreement?

Yes. The amount, the services included, and how long the agreement lasts are all negotiable before you sign. Once signed, the pay number is locked in as the most your agent can collect from any source.

What if my agent skips the written agreement?

They can be suspended from the , which would block them from showing you listings or submitting offers for you. They could also face state-level discipline for failing to give you the Montana agency disclosure required by MCA 37-51-314.

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

Last updated