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Rebate & Cash Back · Settlement Explainer

Who pays the buyer's agent? The NAR settlement

After the 2024 NAR settlement, buyer-agent compensation is negotiated openly and buyers sign a written agreement before touring — but in most SoCal deals the seller still covers it, and rebates still work.

DRE #02232009 · Licensed CA brokerage2024 settlementRebates still legalNegotiable compensation
Quick answer

After the 2024 NAR settlement, buyer-agent compensation is negotiated deal by deal rather than posted on the MLS, and buyers sign a written agreement before touring. In most Southern California sales, the seller still commonly offers to pay the buyer's agent, though it can also be requested in your offer or paid by you. Rebates remain legal and work the same — the buyer-agent compensation is what funds your up-to-1% rebate.

Who pays the buyer's agent now?

After the 2024 National Association of Realtors (NAR) settlement, buyer-agent compensation is negotiated openly instead of being posted on the MLS — but in most Southern California sales, the seller still ends up covering it.

Here's what actually changed. Before, listings advertised a set commission to the buyer's agent through the MLS. The settlement ended that practice and required buyers to sign a written agreement with their agent before touring. Compensation is now negotiated deal by deal: it can be offered by the seller, requested in your offer, or paid by you. In practice, sellers across SoCal still commonly offer it, because it widens their buyer pool. The takeaway for you: it's negotiable, and it should be in writing.

This connects directly to your rebate — the buyer-agent compensation is what funds it. See how the rebate works and the rebate pillar.

What the settlement changed

  • No more MLS-posted buyer commissions. Compensation offers moved off the MLS and into negotiation.
  • Written buyer agreements are required before an agent shows you homes.
  • Compensation is explicitly negotiable — by the seller, the buyer, or split.
  • More transparency about what your agent earns and how.
What did not change: buyer rebates are still legal, sellers can still offer to pay the buyer's agent, and you still get full representation. If anything, written agreements make your rebate clearer, because it's spelled out before you tour.

Three ways the buyer's agent gets paid

Who paysHow it happensHow common in SoCal
Seller offers itSeller offers buyer-agent compensation to attract buyersStill very common
Buyer requests it in the offerYour offer asks the seller to cover your agent's feeCommon as a term
Buyer pays directlyYou pay your agent per your agreementLess common

When the seller offers compensation, that's the pool your rebate comes from. When it's negotiated into your offer, your agent structures it so your rebate still works.

The written buyer agreement

You'll now sign a buyer-representation agreement before touring. It states how your agent is compensated and, with us, states your rebate. Read it — it's a good thing, not a hurdle. It protects you by making the terms explicit up front. See the buyer-representation agreement explained.

How this affects your rebate

Your rebate is a share of the buyer-agent compensation returned to you. As long as that compensation exists in the deal — offered by the seller or negotiated into your offer — the rebate works the same as before: up to 1% of the price back at closing. If a particular seller doesn't offer buyer-agent compensation, your agent negotiates it as a term of your offer so your representation and rebate stay intact. Nothing about the settlement removed the rebate.

What this means for you as a buyer

  • Have the compensation conversation early. Know how your agent is paid before you tour.
  • Get it in writing. Your agreement should state compensation and any rebate.
  • Treat it as negotiable. Compensation is now a term you can shape in your offer.
  • Don't panic about "paying your own agent." In most SoCal deals the seller still covers it.

Common misunderstandings

  • "Buyers now always pay their agent." Not true — sellers commonly still offer compensation.
  • "Rebates are gone." They're not. Rebates remain legal and funded by that compensation.
  • "The agreement locks me in unfairly." Terms are negotiable, including length and scope.
  • "Nothing changed." The MLS commission posting and pre-tour agreement rules did change.

Expert tips

  • Ask for compensation to be seller-paid where possible — common and clean in SoCal.
  • Read your agreement's term and scope before signing; negotiate what doesn't fit.
  • Confirm your rebate is written in so it's guaranteed to be honored at closing.

Frequently asked questions

Who pays the buyer's agent after the NAR settlement?
Compensation is now negotiated per deal. In most Southern California sales the seller still offers to pay the buyer's agent, but it can also be requested in your offer or paid by you. It should be stated in writing.
Did the NAR settlement make buyer rebates illegal?
No. Rebates remain legal in California. The settlement changed how buyer-agent compensation is posted and negotiated, and required written buyer agreements, but did not ban rebates.
Do I have to sign an agreement before touring homes now?
Yes. Under the settlement, buyers sign a written buyer-representation agreement before an agent shows them homes. It states how the agent is compensated and, with us, states your rebate.
Will I have to pay my buyer's agent out of pocket?
Often no. Sellers in Southern California commonly still offer buyer-agent compensation. If a seller doesn't, your agent can negotiate it as a term of your offer.
Is buyer-agent compensation negotiable now?
Yes. It's explicitly negotiable — the seller can offer it, you can request it in your offer, or it can be split. This is one of the main changes from the settlement.
How does the settlement affect my rebate?
It doesn't reduce it. As long as buyer-agent compensation exists in the deal, your rebate works the same — up to 1% of the price back at closing.

Confused by the new rules?

We'll explain exactly how your agent gets paid, keep it seller-paid where possible, and put your rebate in writing.

Disclaimer: Portfolio Home Realty is a licensed California real estate brokerage (DRE #02232009) serving Los Angeles County and Orange County. The buyer rebate is a portion of the buyer-side commission returned to eligible buyers at closing and is generally up to 1% of the purchase price, subject to lender approval and the seller offering buyer-agent compensation. Dollar figures on this page are illustrative estimates, not guarantees. This page is general information, not legal, tax, or lending advice — consult your CPA, attorney, or lender about your situation. Equal Housing Opportunity.