In my last post, I mentioned I’d be diving into the Buyer Representation and Broker Compensation Agreement—aka the BRBC. I’ve been mulling over how to explain it without getting too in the weeds, and here’s where I landed: to frame it through something we all get—how business works.
Let’s start with this:
Would you work for free?
Would you clock in every day not knowing how or if you’d get paid?
Sounds wild, right? And yet, until now, the majority of real estate agents working with buyers didn’t ask for a signed commitment.
Here’s the short version: When a buyer’s agent helps you find a home, they’re doing more than just opening doors. They’re researching properties beyond what’s on the MLS or Zillow, coordinating showings, negotiating deals, consulting you through major decisions, preparing you for a possible bidding war, organizing you for this journey, and investing their time and resources—all before seeing a dime.
And if the deal falls through? They might walk away with nothing.
That’s where the BRBC comes in. It’s a simple agreement that lays out how your agent will be compensated, by whom, and the work they are responsible for to earn that compensation. Think of it like a consulting contract: it ensures your agent is committed to working for you—and it shows that you’re committed too.
A few quick facts:
- The National Association of Realtors mandated the use of the BRBC starting in July 2024 with California Assembly Bill (AB) 2992 requiring use of the BRBC on January 1, 2025. The purpose? Transparency around agent compensation, how this compensation must be agreed upon, and fair practices across the board.
- It’s not a lifetime commitment. The BRBC has a max term of 90 days, and can be ended early if it’s not a good fit.
- This isn’t new. Many commercial agents and proactive residential agents have used a previous version of this form for years to clarify roles and protect everyone involved.
So why sign it?
Because it’s the cool and righteous thing to do! Just like any other skilled consultant or service provider you engage, your agent deserves clarity and fair compensation. This form doesn’t trap you—it empowers both you and your agent to move forward with clear expectations. It ensures you’re getting someone truly in your corner—and they know they can bring their A-game for you without worrying about getting undercut or unpaid.
No trickery, no fine print, no life-time commitment—just transparency and mutual respect. It’s a smart move.
Additional resources on the BRBC.
Sitzer-Bernett class-action lawsuit
N.A.R.’s settlement in Sitzer-Burnett case
Impact of the settlement on Homebuyers
California’s Department of Real Estate overview of BRBC
Opinions and views are my own. The content in this post is for informational purposes only. Do not rely on this information for financial and/ or legal advice or to make any decisions about your financial and/or legal situation. Seek professional counsel for your specific needs.