10/28/2024
New Law for Realtors and buyers:
Buyer representation agreements have been required for MLS Participants since August 17th, 2024.
Beginning January 1st, 2025, buyer representation agreements will be required by California law for all real
estate licensees in almost all sales transactions. Under this law, the representation period is capped at three
months unless the buyer is a corporation, partnership, or LLC. Renewals are permitted but cannot be
automatic and cannot exceed a new three-month period. Additional provisions include:
• Agreements must be entered into as soon as practicable, and in no event later than when the buyer
executes a purchase offer. But remember, for MLS participants conducting residential 1-4 unit
property transactions, agreements still must be entered into prior to touring a property when working
with a buyer per the NAR settlement terms.
• Agreements must include the compensation owed to the real estate broker, the services to be
rendered, when compensation is due, and a contract termination provision.
• Agreements that don’t meet the requirements of this law are void and unenforceable, and agents
who enter into such agreements will be in violations of the licensing law and subject to DRE
discipline.