The BRBC, One Year In: What Actually Happened & What Peninsula Buyers Still Need to Know in 2025–26

About a year ago I wrote an introduction to the Buyer Representation and Broker Compensation Agreement – the BRBC – for buyers navigating the Peninsula market. A lot has happened since then. The law is fully in effect, the forms have been updated, commissions have been tested in the real world, and buyers and agents alike have had time to settle into the new normal.

Here’s my honest year-one report card.

What’s Changed (and What Hasn’t)

AB 2992 is now fully in force. As of January 1, 2025, California law requires a written buyer-broker representation agreement before an agent can earn a commission. No more handshake deals. No more hoping the seller’s side covers you. This applies to all property types, residential, commercial, multifamily, with narrow exceptions for leases and government land sales.

The BRBC form itself got a critical update. In late 2025, the California Association of REALTORS® released a revised BRBC (effective for 2026 transactions). A small but legally significant change was added to Paragraph 2A(1): the agreement now automatically caps at 90 days from the start date, or whichever end date is earlier, to prevent agreements from inadvertently exceeding the three-month statutory limit. Why does this matter? Under AB 2992, a BRBC that runs even one day over three months is void and unenforceable which means an agent could close an entire transaction and have zero legal grounds to collect their commission. The new language is a safeguard for both parties.

The sky didn’t fall on commissions but the conversation changed. Many predicted that decoupling buyer-agent commissions from the MLS would crater agent pay. That’s not what happened. According to Redfin data, the average buyer’s agent commission actually edged back up from a post-settlement low of 2.36% in Q3 2024 to 2.42% by Q3 2025. A nationwide survey found total combined commissions climbed from 5.32% to 5.44% over the same period. What changed isn’t the rate, it’s the transparency around it.

Sellers are still largely covering buyer-agent fees but they are making a strategic choice when they do so. Sellers are no longer required to offer buyer-agent compensation in the MLS, but most still do especially in competitive luxury markets like Palo Alto, Menlo Park, and Atherton where attracting the strongest, most represented buyers remains the goal. In slower or more negotiated markets, buyers are increasingly requesting compensation as part of the purchase offer, similar to asking for a closing cost concession. Deal by deal. Case by case.

Luxury commissions are trending slightly lower but not dramatically. For homes over $1 million, commissions have drifted toward the 2.17% range for buyer’s agents as of late 2025. This aligns with predictions from economists who expected high-end markets to see more negotiation as buyers gained sophistication about what they’re signing. In our Peninsula market, where a “entry-level” home can clear $3M, these conversations are happening and that’s not a bad thing. Value-driven agents who communicate their worth clearly are winning.

What Hasn’t Changed: Why the BRBC Still Matters

A year in, the BRBC still does exactly what it was designed to do—and buyers who understand it are better protected. A few things worth reinforcing:

• You must sign before touring in most circumstances. NAR rules require MLS-participating agents to have a written agreement before showing you any property, in person or via live video tour. California’s law requires it no later than when you submit an offer. In practice, good agents are getting this signed before the first showing.
• It can be non-exclusive. Not every BRBC locks you to one agent. Unless the “Exclusive” box is checked and initialed, the agreement is non-exclusive by default. Worth knowing if you’re early in your search.
• Multiple BRBCs create conflict risk. Signing agreements with multiple agents simultaneously creates real legal exposure for buyers and agents. Choose who you want to work with, then commit. That’s the spirit of the form.
• The BRBC doesn’t have to be the C.A.R. form… but it’s the safest. The law allows brokers to use their own written agreement, but the C.A.R. BRBC includes protections vetted by real estate attorneys. Stick with the standard unless you have a strong reason not to.

A Note to Peninsula Buyers in 2025–26

If you’re searching in Palo Alto, Menlo Park, or Atherton, you’re operating in one of the most competitive and high-stakes buyer markets in the country. The agents who thrive here, and who will fight for you in a multiple-offer situation, are not working for hope. They’re working under a clear agreement, with clear expectations, and giving you their best.

The BRBC is one page of paperwork that changes the entire dynamic of how an agent shows up for you. Sign it with someone you trust. Ask every question. And know that a great agent will welcome that conversation.

Related Resources

C.A.R. 2026 BRBC Form Updates (PWR Connect)

AB 2992 Full Requirements (Brownstein Law)

Buyer Agent Commissions One Year Later (Inman)

NAR Settlement Impact on Homebuyers

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.