Since August 17, 2024, buyers working with a real estate agent in Massachusetts have been required to sign a written buyer representation agreement before the agent can show them homes. This is a direct result of the National Association of Realtors (NAR) settlement — and understanding what you’re signing is more important than ever.
If you’re planning to buy a home on the North Shore of Massachusetts, here’s everything you need to know about buyer representation agreements before you start touring homes with Daniel Meegan or any other agent.
What Is a Buyer Representation Agreement?
A buyer representation agreement is a written contract between a homebuyer and a real estate agent (or their brokerage) that formalizes the working relationship. It spells out the agent’s duties to you, how long the agreement lasts, the geographic area it covers, and — critically — how the agent will be compensated for their work.
Before the NAR settlement, buyer representation agreements existed but weren’t universally required. Buyers could tour homes, make offers, and close on properties without ever signing a formal agreement. That changed in August 2024.
Why Are Buyer Representation Agreements Now Required?
The NAR settlement, which took effect on August 17, 2024, resolved a series of antitrust lawsuits that challenged how buyer agent compensation was handled in real estate transactions. As part of the settlement, NAR agreed to new rules that require:
- Written buyer representation agreements before an agent shows a buyer any property
- Buyer agent compensation to be explicitly negotiated and disclosed in writing
- Removal of offers of buyer agent compensation from MLS listings
These changes put compensation conversations at the front of the process rather than burying them inside the closing statement. The goal is transparency — you should know exactly how your agent is being paid before you ever walk through a front door.
What Does a Buyer Representation Agreement Cover?
A standard buyer representation agreement in Massachusetts will typically address:
Duration
Most agreements run for 60–90 days, covering the typical search-to-offer timeline. Some agents use shorter agreements that cover specific properties or a single showing session. The duration should match your actual buying timeline — if you’re in early research mode, a shorter or more limited agreement may be appropriate.
Geographic Area
The agreement will specify which markets or cities the representation covers. If you’re searching across multiple North Shore communities — Beverly, Salem, Marblehead, Swampscott — make sure all of them are included.
Compensation
This is the biggest change from the pre-settlement landscape. The agreement must specify, in writing, the compensation you agree to pay your buyer’s agent. This is typically expressed as a percentage of the purchase price or a flat fee. Importantly, the seller may or may not agree to cover this cost — but your obligation to pay it is defined in your buyer rep agreement, not by what the seller offers.
Exclusivity
Many agreements are exclusive, meaning you agree not to work with other buyer’s agents during the term. Some are non-exclusive or limited to specific properties. Read this clause carefully before signing.
How Does a Buyer’s Agent Get Paid Under the New Rules?
Before August 2024, sellers typically offered a blanket buyer agent commission through the MLS, and buyers rarely thought about it. Now, the process works differently:
- Your buyer rep agreement specifies the compensation you’ve agreed to pay your agent
- When you make an offer on a home, your agent (with your approval) can ask the seller to cover some or all of that compensation as a concession
- The seller can agree, negotiate, or decline — just like any other offer term
- If the seller doesn’t cover your agent’s fee, you are responsible for paying it per your agreement
In practice, many North Shore sellers continue to offer buyer agent compensation because it expands the pool of buyers who can afford to purchase their home. But it’s no longer guaranteed, and your agent’s compensation must now be explicitly negotiated.
What If the Seller Doesn’t Offer Buyer Agent Compensation?
If a seller won’t cover your buyer agent’s fee and you’ve agreed to a 2.5% buyer agent commission in your representation agreement, you would need to pay that fee yourself at closing — adding it to your closing costs. This is a real consideration, especially for first-time buyers with limited cash reserves.
There are a few ways to address this:
- Ask your lender if buyer agent fees can be rolled into your loan (guidelines vary)
- Negotiate with the seller to cover some or all of the fee as a closing cost concession
- Work with your agent to negotiate their compensation on a property-by-property basis
Daniel Meegan is transparent about compensation from the first conversation. He will explain exactly how he is paid and help you understand your options before you sign anything.
Can I Work With Multiple Agents?
That depends on what you signed. If your buyer representation agreement is exclusive — which many are — you’ve agreed to work only with that agent for the duration of the agreement and within the covered geographic area. Working with another agent in that territory during the agreement period could put you on the hook for two agent fees.
If you’re not ready to commit to a single agent, ask about non-exclusive or property-specific agreements that allow more flexibility.
Can I Cancel a Buyer Representation Agreement?
Most agreements have cancellation provisions. Some allow either party to cancel with written notice. Others have minimum commitment periods. Review the cancellation clause before signing, and ask your agent to explain your exit rights. A good agent will not lock you into an agreement you can’t leave if the relationship isn’t working.
What Should You Ask Before Signing?
Before you sign a buyer representation agreement with any agent, get clear answers to these questions:
- What is your compensation, and how is it calculated?
- What happens if the seller won’t pay your fee?
- Is this agreement exclusive? What’s the geographic area?
- How long is the agreement, and what are my cancellation rights?
- Will you practice dual agency — representing both me and the seller on the same property?
That last question is especially important. See our full guide on dual agency in Massachusetts real estate to understand the risks before you agree to it.
For a complete list of what to ask a buyer’s agent before committing, read: Questions to Ask a Real Estate Agent
Buyer Representation Agreements on the North Shore of Massachusetts
In Beverly, Salem, Marblehead, Swampscott, Peabody, and Lynn, buyer representation agreements are now part of every professional buyer-agent relationship. The best agents will walk you through the agreement in detail before you sign — and will welcome your questions.
Daniel Meegan uses straightforward representation agreements with clear compensation language and reasonable cancellation terms. He believes buyers who understand the agreement are better clients — because they’re making informed decisions, not just following a process they don’t fully understand.
Understanding Your Financial Commitments as a Buyer
Beyond agent compensation, make sure you understand all the costs of buying a home in Massachusetts — including closing costs, home inspection fees, and moving expenses.