New York guide

NY Buyer Broker Agreements: Post-NAR Settlement Requirements

Before a New York agent can show you a home, you and the agent must sign a written buyer broker agreement that spells out how the agent gets paid.

TL;DR

Before a New York agent can show you a home, you and the agent must sign a written buyer broker agreement that spells out how the agent gets paid. The fee can be covered by the seller's side, by you, or split between the two — and the agreement has to say which. This rule took effect nationwide on August 17, 2024, after a major industry settlement.

Before you start — 7 things to know

  • In New York, you must sign a written buyer broker agreement with an agent before they take you on a home tour — in person or virtually. This rule comes from the August 2024 settlement and is enforced by every NY .

  • The agreement has to state exactly how much your agent will be paid — as a dollar amount, a percentage, or a clear formula. A vague phrase like 'whatever the seller offers' is not allowed.

  • Under New York Department of State rule 19 NYCRR 175.7, your agent must disclose every source of money they will receive on your deal, including anything paid by the seller's broker. You should see all of it in writing before you sign.

  • There are three ways your agent's fee can get paid: the seller's side covers it in full, you cover it in full, or the seller's offer covers part and you pay the difference. Your buyer broker agreement should explain all three scenarios so there are no surprises at closing.

  • Some New York agents use a short 'touring-only' agreement first, then move you to a full buyer broker agreement once you're ready to make an offer. Both are valid — just make sure you understand which one you're signing.

  • The agreement is negotiable. The fee amount, how long it lasts, the geographic area, and whether it's exclusive are all things you can talk through and change before you sign.

  • Read the cancellation terms carefully. If the agent isn't a good fit, you want to know how to end the relationship without owing a fee for homes you haven't bought.

The timeline — step by step

  1. Interview a few New York agents and ask each one to walk you through their buyer broker agreement and how their fee works. No tour happens at this stage.

  2. Pick an agent and review their written buyer broker agreement. Confirm the fee amount, the length of the agreement, and the area it covers.

  3. Make sure all compensation sources are disclosed in writing, as required by New York Department of State rule 19 NYCRR 175.7. This includes anything the seller's broker may offer to pay your agent.

  4. Sign the buyer broker agreement — or a short touring-only version if you're not ready for a full commitment yet. Only after signing can your agent legally show you homes.

  5. Tour homes with your agent. As you get closer to making offers, upgrade any touring-only agreement to a full buyer broker agreement if you started with the short version.

  6. When you write an offer, your agent should show you what the seller's side is offering to pay (if anything) and how that compares to your agreed fee. You'll know upfront whether you owe a gap.

  7. At closing, the agent's fee is settled according to your written agreement — paid from the seller's side, from you, or a mix of both.

Common questions

Can a New York agent show me a house without a signed agreement?
No. Since the August 17, 2024 settlement, any agent affiliated with a New York must have a signed written agreement with you before showing you a property. That includes in-person tours and live video walkthroughs.
Do I have to pay my agent out of pocket?
Not necessarily. In many New York deals, the seller's broker still offers to cover all or part of the buyer's agent fee. If their offer matches your agreement, you pay nothing extra; if it falls short, you cover the gap unless your agent agrees to waive it.
Is the fee amount negotiable?
Yes. The buyer broker agreement is a contract between you and the agent, and the fee — whether it's a percentage, a flat dollar amount, or a formula — is something you can negotiate before signing. If an agent says their rate is fixed, you're free to talk to other agents.
What's the difference between a touring agreement and a full buyer broker agreement?
A touring agreement is a short-form contract that only covers showings — it lets an agent take you to see homes without a long-term commitment. A full buyer broker agreement covers the entire home search, including writing offers and going to closing, and includes the agent's compensation in detail.
What does '19 NYCRR 175.7' actually require?
It's a New York Department of State rule that requires real estate agents to disclose every source of compensation they'll receive on your transaction. In practice, that means your agent must show you in writing where their money is coming from — your pocket, the seller's broker, or both — before you sign or close.
Can I cancel a buyer broker agreement if it isn't working out?
Most agreements include a cancellation clause, but the terms vary. Before signing, ask how to end the relationship, whether there's a notice period, and whether you'd owe any fees for homes the agent showed you. Get the answer in writing in the agreement itself.

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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