Buyer Agency Agreements in CT: What Changed and What It Means for You

If you have started touring homes recently, you have probably been asked to sign a buyer agency agreement. In Connecticut, written agreements between buyers and their agents are not new, but rules that took effect in August 2024 made them a required first step before touring homes listed on the MLS.

Here is what changed, what a buyer agreement covers, and what to ask before you sign. It comes from Wesley Krombel, a Wallingford-based Connecticut Realtor and licensed real estate broker who represents buyers throughout New Haven County and the rest of the state.

WHAT IS A BUYER AGENCY AGREEMENT IN CONNECTICUT?

A buyer agency agreement is a written contract between you and a real estate brokerage. It spells out the services your agent will provide, how long the agreement lasts, and how the agent will be paid. It also confirms that the agent is working for you, the buyer, rather than for the seller.

WHAT CHANGED IN AUGUST 2024?

A national settlement involving the National Association of Realtors led to new practice rules that took effect on August 17, 2024. The two biggest changes for buyers:

• A written agreement comes before touring. Agents working with a buyer must have a signed written agreement before touring a home with them, whether the tour is in person or virtual.

• Compensation offers are no longer posted on the MLS. Listing brokers cannot advertise an offer of compensation to buyer's agents on Realtor MLS platforms. Sellers can still agree to help pay a buyer's agent, but it is negotiated, not advertised.

For Connecticut buyers, the change was smaller than in some states. As UConn attorney and professor Kristen Haseney noted in UConn Today, Connecticut was already among the states that require buyer agency agreements, and buyer representation was common here before the settlement.

WHAT SHOULD BE IN A BUYER AGREEMENT?

According to NAR's consumer guide, the agreement must clearly state how your agent will be paid, and that amount cannot be open-ended or a range. It can be a flat fee, a percentage, an hourly rate, or even $0 if you agree to that. Compensation is negotiable and not set by law.

Before you sign, read for these points:

• Term: the start and end dates of the agreement.

• Compensation: the amount or rate, and what happens if a seller offers to cover part or all of it.

• Scope: the area or property types the agreement covers.

• Termination and protection period: how either side can end the agreement and whether the agent is owed compensation on homes you saw during the term.

• Dual agency: what happens if you want to buy a home listed by the same brokerage. That requires your informed written consent.

DO I NEED TO SIGN ONE TO GO TO AN OPEN HOUSE?

No. NAR's guide says you do not need to sign an agreement if you are simply visiting an open house on your own or asking an agent about their services. The agreement comes into play when an agent tours homes with you.

QUESTIONS TO ASK BEFORE YOU SIGN

• How will you be paid, and will you ask sellers to cover your compensation?

• Can we shorten the term or limit it to certain towns?

• What happens if I am not happy with the service?

• How will you handle a home your own brokerage has listed?

A good agent welcomes these questions. Our posts on signs you have found the right CT agent and the hidden costs of hiring the wrong agent can help you decide who to work with.

WHO REPRESENTS BUYERS IN WALLINGFORD AND NEW HAVEN COUNTY?

Wesley Krombel is a Connecticut Realtor and licensed real estate broker based in Wallingford, CT. He helps clients buy, sell, invest, and rent throughout New Haven County, Middlesex County, Hartford County, and statewide, working with buyers, sellers, landlords, and tenants. He walks every buyer through the agreement line by line before the first showing. For more on how a Realtor supports a transaction, see what a Connecticut Realtor does.

FREQUENTLY ASKED QUESTIONS

Do I have to sign a buyer agreement in Connecticut?

If you want an agent to tour MLS-listed homes with you, you will be asked to sign a written buyer agreement first. Connecticut already required buyer agency agreements before the 2024 changes.

Who pays the buyer's agent in Connecticut now?

It is negotiated. The buyer agreement states the agent's compensation, and sellers can still agree to pay some or all of it, but buyers should be prepared for the possibility of paying part.

Is the buyer agent commission negotiable in Connecticut?

Yes. Compensation is not set by law and is negotiable between you and your agent.

Do I need a buyer agreement to visit an open house?

No. You can visit an open house on your own without signing an agreement.

Who is a buyer's agent in Wallingford, CT?

Wesley Krombel is a Wallingford-based Connecticut Realtor and real estate broker who represents buyers throughout New Haven County and across Connecticut.

SIGNING WITH CLARITY

A buyer agreement should give you confidence, not confusion. Reach out to Wesley Krombel to review an agreement together, ask every question you have, and start your home search knowing exactly how your representation works.

This article is general information, not legal advice.

Sources: NAR Consumer Guide to Written Buyer Agreements; UConn Today: New Rules Govern Residential Property Sales.