Candi Borck January 22, 2026
What a Buyer's Agency Agreement Is (and What It Isn't)
If you're buying property, you'll sign a buyer's agency agreement BEFORE your agent shows you homes (whether in person or virtually). This became a national requirement on August 17, 2024, following the National Association of REALTORS® settlement—though these agreements have been standard practice for years, they commonly weren’t executed until you were actually placing an offer on a property.
Here's what the agreement covers and what it doesn't.
What It Is
A buyer's agency agreement is a written contract between you and a real estate agent and brokerage that establishes your working relationship. Under NAR rules effective August 2024, this agreement must be signed before you tour any property.
The agreement defines:
Your agent's compensation. The contract must include a conspicuous disclosure showing the specific dollar amount or percentage your agent will be paid, or how that amount will be determined. Compensation is fully negotiable and not set by law.
The relationship type. Tennessee offers three options:
The contract duration. Most agreements run 30 to 90 days. You negotiate this timeframe.
Who pays your agent. The seller may offer to pay your agent's commission as a concession. If not, you're responsible for the agreed-upon fee. This is part of the negotiation process when you make an offer on a property.
The property you're seeking. These agreements can be generalized or written to be specific, such as including general description, location/geographic scope, price range, and any specific properties excluded from the agreement.
Services your agent provides. Property searches, showing coordination, market analysis, offer preparation, negotiation, and transaction management through closing.
How NAR Settlement Rules Changed Things
The August 2024 NAR settlement established two major requirements:
Written agreements BEFORE touring. Agents must have a signed buyer agreement in place before showing you any MLS-listed property.
No buyer agent compensation on MLS. Sellers can no longer advertise buyer agent commissions in MLS listings. Compensation negotiations happen directly between agents or between buyers and their agents, outside the MLS system.
Sellers can still offer to pay buyer agent fees—they just can't publish those offers in the MLS. Your agent negotiates this directly with the listing agent or seller.
Tennessee's Three Agreement Types
Tennessee REALTORS® provide three standard forms, updated in July 2024 for NAR compliance:
RF141 - Exclusive Buyer Representation Agreement. You work exclusively with this agent/brokerage. If you purchase property during the contract period—even through another agent—you still owe this agent their commission.
RF143 - Non-Exclusive Agreement (Written Agreement with Buyer Before Touring a Home). You can work with multiple agents. You only owe commission to the agent who actually finds the property you purchase.
Facilitator Option. The agent assists without advocating for your interests. Lower level of service and obligation.
What Compensation Looks Like Now
Broker compensation is not set by law. All fees are fully negotiable between you and your agent.
Seller-paid commissions still exist. Many sellers offer to pay buyer agent compensation as a seller concession. This doesn't appear in the MLS but can be communicated directly between agents.
If the seller doesn't pay, you do. Your agreement specifies what you'll pay if the seller doesn't cover it. You negotiate this amount before signing.
MLS participants have a cap. If your agent is an MLS participant, they can't receive compensation exceeding what's specified in your agreement.
VA buyers get special protection. If buyer broker compensation is considered non-allowable under VA loan guidelines, that obligation is waived.
What the Agreement Isn't
It's not a lifetime commitment. These are time-limited contracts. Duration is negotiable.
It's not the same for all buyers. You choose exclusive, non-exclusive, or facilitator relationships. Different levels of obligation and service.
It's not optional. Tennessee law requires a written agreement before agents provide representation. NAR rules now require it before touring MLS properties.
It's not a guarantee you'll buy. You can end the contract period without purchasing. You're not forced to make offers or accept any property.
It's not unchangeable. Some agreements include termination clauses. Others simply expire. Review early termination terms before signing. And you can always discuss with your agent.
It's not permission to be pressured. The agreement establishes a professional relationship. It doesn't give your agent the right to push you toward properties you don't want or rush your timeline.
It's not a purchase contract. This establishes representation. The purchase and sale agreement comes later when you buy a property.
What Tennessee Law Requires
Tennessee requires a bilateral, written agency agreement to establish an agency relationship. Key provisions:
Designated agent appointment. Your agreement names the specific licensee who represents you, separate from other agents in the same brokerage.
Duties to all parties. All licensees owe you skill and care, disclosure of adverse facts, confidentiality protection, honesty, good faith, timely accounting of deposits, and disclosure of conflicts of interest.
Additional duties to clients. If you have an agency relationship (not just facilitator), your agent must obey lawful instructions, remain loyal to your interests, schedule showings, receive and forward offers, answer negotiation questions, and advise on closing procedures.
Default to facilitator. If the same designated agent ends up representing both buyer and seller in a transaction, the agent defaults to facilitator status (neutral position) unless otherwise agreed.
What to Review Before Signing
Compensation amount. Verify the dollar amount or percentage you'll pay if the seller doesn't cover it. (Discuss with your agent what services they include in this amount)
Relationship type. Exclusive, non-exclusive, or facilitator. Understand the differences.
Duration. Start with 30-60 days if you're uncertain about the agent or timeline.
Geographic area. Confirm it covers everywhere you're actually searching.
Carry-over clause. Most agreements include a carry-over period (typically 30-90 days) after expiration. If you buy a property the agent showed you during this window, you still owe commission.
Termination provisions. Understand how you can end the agreement early. Some require mutual consent. Some include cancellation fees.
Properties specifically exempted. If you're already considering specific properties that you toured with another agent, you can exclude them from the agreement.
VA loan provisions. If using VA financing, confirm the waiver clause for non-allowable compensation.
Questions to Ask Before Signing
Bottom Line
The buyer's agency agreement formalizes your working relationship with a real estate agent. It clarifies services, compensation, duration, and obligations on both sides.
Tennessee already required written agreements for agency relationships. The August 2024 NAR settlement made written agreements mandatory nationwide before touring properties and removed buyer agent compensation from MLS listings.
Read your agreement carefully. Understand what you're signing. Negotiate terms that protect your interests. Ask questions.
You're about to make a major financial decision. The professional representing you should earn that responsibility through demonstrated competence and clear communication—not just a signature on a form.
Choose an agent who explains this agreement thoroughly, answers your questions directly, and puts your interests first.
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CANDI BORCK
ADDRESS 2010 8TH AVE S NASHVILLE TN 37204