Regulatory Update · Buyer Education
AB 2992: California's New Buyer-Broker Rules, Explained
A plain-English look at California's new buyer-broker agreement rule: what AB 2992 changes, what the agreement must include, and what Northern California homebuyers should do before they sign. Written by Northern California 55+ real estate specialist Gary Lee.
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California's buyer-broker agreement rule is in effect, and it touches your home search earlier than many buyers expect: before you make an offer, your agent must have a signed, written buyer-broker representation agreement with you. California Civil Code section 1670.50 requires the agreement "as soon as practicable" and no later than the execution of the buyer's offer. Since January 1, 2026, California Department of Real Estate regulations (Title 10 CCR section 2906.2) create a rebuttable presumption that it is practicable for a buyer's agent to obtain the signed agreement before showing a property, in person or virtually. In plain English, California starts with the assumption that the agreement could reasonably have been signed before the showing, unless the facts show otherwise.
NorCal55Plus.com is where researched, firsthand 55+ community coverage lives, the resource buyers and sellers turn to across Greater Sacramento and Northern California.
Whether you are exploring Sun City Lincoln Hills or resale homes in Sun City Roseville, the same buyer-broker agreement rule now applies to every California home purchase. Active-adult buyers are not exempt: if you are represented by an agent, the written agreement requirement is part of your transaction just as it is for any other buyer.
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Meet Gary & Rutsell, your Northern California 55+ REALTORS
Gary Lee has been a full-time California REALTOR® since 2004. Rutsell Lee is also a California REALTOR® and co-founder of The Gary Lee Team. Together they research Northern California 55+ communities, tour homes and amenities, and help buyers and sellers compare their options throughout Greater Sacramento and Northern California.
The Gary Lee Team · eXp Realty of Northern California, Inc.
AB 2992 quick answer
California law requires a written buyer-broker representation agreement when an agent represents a buyer. The agreement must address compensation, services, when compensation is due and termination. For most individual buyers, the term is capped at 90 calendar days and cannot renew automatically. Current California Department of Real Estate regulations create a presumption that it is practicable to sign before an agent shows property in person or virtually.
What AB 2992 is
AB 2992, which added section 1670.50 to the California Civil Code, was signed into law on September 24, 2024, and took effect on January 1, 2025. It requires a written buyer-broker representation agreement between a buyer and their agent, so that the relationship and the terms of representation are on paper before a purchase moves forward.
The requirement applies to all real estate licensees in California and to all types of residential property sales, including resale homes, new construction, and the 55+ and active-adult communities we cover across Placer, Sacramento, and El Dorado Counties. The agreement must be executed as soon as practicable and no later than the execution of the buyer's offer to purchase. Since January 1, 2026, Department of Real Estate regulations (Title 10 CCR section 2906.2) add a rebuttable presumption that it is practicable for a buyer's agent to obtain the signed agreement before showing a property, in person or virtually. In plain English, the law starts from the assumption that the agreement could reasonably have been signed before the showing, unless the facts show otherwise.
For buyers new to the written rules that come with these communities, our plain-English guide to age requirements and the HOPA rules explains how the age-restriction side of a 55+ purchase works. The buyer-broker agreement is the other, newer piece of paperwork you will see at the very start.
Why did California require this?
AB 2992 followed the nationwide antitrust litigation and settlement over how buyer-agent commissions were set, most notably the Burnett class action against the National Association of Realtors. That settlement changed the industry's commission model, and California responded by formalizing buyer representation and compensation transparency in writing.
The result is a simpler, more transparent starting point for you: before an agent works for you in a transaction, you both agree on paper what the work is and what it costs. No hidden handshake, no assumption that the seller's side quietly covers everything.
What changed in 2026
DRE's AB 2992 implementing regulations became operative on January 1, 2026. The regulations clarify the timing of the agreement, the 90-calendar-day calculation, how renewal works, and the showing trigger, including the rebuttable presumption that it is practicable for a buyer's agent to obtain the agreement before an in-person or virtual showing. In plain English, California begins with the assumption that the agreement could reasonably have been signed before the showing, unless the facts show otherwise.
What changed after AB 2992?
California subsequently corrected the statutory compensation-disclosure language through AB 1521, reinforcing that real estate compensation is negotiable between the buyer and broker.
What the buyer-broker agreement must include
These are the four categories Civil Code section 1670.50 requires the agreement to address. Here is what each one covers in plain English.
1. Broker compensation
What the broker will be paid for the work of representing you.
2. Services
What the broker agrees to provide, from touring and research to offer strategy and closing.
3. When payment is due
When payment is due: in nearly all Northern California 55+ transactions, the buyer's agent's compensation is paid by the seller out of the seller's proceeds at closing as a negotiated concession. Most buyers never write a separate check to their agent. The payment is settled through the transaction, and buyers know the terms in writing before signing the agreement. Timing is confirmed in the agreement, typically at the close of escrow under the conditions spelled out in the contract.
4. Termination
How and when the agreement ends, including the term of the relationship.
Compensation is a negotiated, written term rather than something a buyer assumes is covered elsewhere, and that clarity is a real protection.
Before you sign, ask the questions out loud: "How am I paying my agent, how much, and for what services?" If the answer is not clear on paper, keep asking until it is.
How long can the agreement last?
AB 2992 buyer-broker representation agreements cannot last longer than three months. DRE's implementing regulations define that three-month cap as 90 calendar days. The period generally starts the day after the last party signs the agreement, unless the parties agree to a delayed effective date.
The agreement does not renew automatically. If both parties want to continue working together after the term ends, a renewal must be signed, just like the original agreement.
The statutory maximum term does not apply when the buyer is a corporation, LLC, or partnership. For individual consumer buyers, which is who this guide is written for, the 90-calendar-day cap and the no-auto-renewal rule are the standard.
This matters because a longer-term agreement is not the norm. If an agent hands you a representation agreement that runs for a year, or one that says it renews on its own, question it before signing.
What if I just walk into an open house?
Stopping by an open house and signing the visitor sign-in sheet does not by itself create a buyer-agency relationship. California agents use an Open House Visitor Non-Agency Disclosure and Sign-In form so visitors understand they are not being represented by the host agent.
California's 2026 implementing regulations (Title 10 CCR section 2906.2) specifically clarify that a seller's agent acting solely for the seller is not acting as a buyer's agent merely by showing the property, including at an open house.
But the moment an agent is going to show you properties or write an offer on your behalf, the buyer-broker representation agreement requirement applies. Walking in the front door of an open house is casual; being represented in a purchase is a written arrangement.
What This Actually Changes When You Start Looking at Homes
The rule sounds like paperwork, but it shapes the whole buyer journey. Here is how it plays out, step by step, from the first conversation to the offer:
- 1
Choose who will represent you before you start looking.
- 2
Discuss the services you want and how compensation works.
- 3
Review the agreement before anything is signed.
- 4
Sign at the legally appropriate point. In practice, that means before touring, and no later than before your offer goes in.
- 5
Tour homes with the representation relationship clear.
- 6
Write offers with everyone understanding who represents whom.
Before Gary and Rutsell start touring homes with a buyer, they walk through the agreement so the buyer understands who represents them, what services are included, how compensation works, and how long the agreement lasts.
Before You Sign, Ask These Questions
Here is the part we tell buyers not to rush through: understanding what you are signing matters as much as signing it. Walk through each question with your agent before you put your name on the agreement.
- What services will you provide?
- How are you compensated?
- When would compensation be due?
- Can the seller contribute toward that amount?
- How long does the agreement last?
- Is it exclusive?
- What properties or geographic area does it cover?
- How can the agreement end if it is not working?
What Northern California buyers should do
- Read the agreement before signing, every page of it.
- Confirm the compensation amount and who pays it: buyer, seller, or a combination.
- Confirm the service term and that the agreement does not auto-renew.
- Ask any question before touring, so there are no surprises at the offer stage.
- Keep a copy of everything you sign, including the agreement.
These steps are part of the larger process we walk through in our complete guide to buying in a 55+ community in Northern California , from the first tour to closing day.
Buyer FAQ: the buyer-broker agreement in Northern California
Do I really need to sign something before I look at homes?
In most cases, yes. California Civil Code section 1670.50 requires the agreement "as soon as practicable" and no later than the execution of the buyer's offer. Since January 1, 2026, Department of Real Estate regulations (Title 10 CCR section 2906.2) create a rebuttable presumption that it is practicable for a buyer's agent to obtain the signed agreement before showing a property, in person or virtually. In plain English, California starts with the assumption that the agreement could reasonably have been signed before the showing, unless the facts show otherwise. Plan to review and sign it early, before you start viewing homes.
Does this apply at a builder sales office?
Gary and Rutsell regularly work with buyers comparing resale and new-construction 55+ communities, so this question comes up often. Yes. The rule applies to every licensed real estate agent in California and to all types of residential property sales, including resale homes, new construction, and 55+ and active-adult communities. New construction is not exempt, but the requirement applies when a broker or agent is performing licensed services for or on behalf of the buyer. A builder's salesperson, or a seller's agent acting solely for the seller, is not automatically the buyer's agent merely by showing the property.
This is exactly why buyers should contact our team before a first builder visit: we can explain where you stand on the buyer side before you step into the sales office.
How much do I pay my buyer's agent under the new rules?
There is no fixed fee. In practice in Northern California, buyer-agent compensation is most often paid by the seller as a negotiated concession at closing, so most buyers are not writing a separate check. The buyer-broker agreement states how much your broker will be paid and by whom: you, the seller, or a combination of both. It is now a negotiated, written term, so the amount depends on the services you agree to and what you negotiate. Ask for the numbers in writing before you sign.
How long does the buyer-broker agreement last?
No longer than three months. California's implementing regulations cap buyer-broker representation agreements at 90 calendar days, and they do not renew automatically. If you and your agent both want to keep working together, you sign a new agreement when the term ends.
What happens if I toured a home before signing?
Touring a property without first signing a buyer-broker agreement does not automatically make you represented by that agent. However, California's current regulations create a rebuttable presumption that it is practicable for a buyer's agent to obtain the agreement before an in-person or virtual showing. In plain English, the law assumes the agreement could reasonably have been signed before you toured, unless the facts show otherwise. If this happens, clarify the agency relationship before continuing.
Can the seller still pay my buyer's agent?
Yes, and in nearly all Northern California 55+ transactions, the buyer-agent compensation is paid by the seller as a negotiated concession at closing. A buyer may request that the seller contribute toward buyer-agent compensation as part of the transaction, and in most cases it is handled through the seller's proceeds, but the seller is not required to agree. The agreement states exactly who pays and how much, so you will know before you sign.
Is buyer-agent compensation fixed by law?
No. Real estate compensation is negotiable and is not fixed by California law. Seller-paid concessions and buyer-paid compensation are both negotiable terms you work out with your agent and write into the agreement.
How Gary and Rutsell help
Gary and Rutsell Lee work together with 55+ buyers throughout Greater Sacramento and Northern California, including new-construction and resale communities. When you work with our team, we walk you through the buyer-broker agreement before we ever step into a home. You will see the compensation terms in writing, you will know exactly what services we provide, and you can ask us anything before signing. No pressure, no fine print surprises: just a clear conversation about buyer representation at the very start.
Most of the buyers we guide are also planning the move itself. If that is your situation, our guide to downsizing and right-sizing for your next chapter walks through what to keep, what to let go, and how to time the move without the last minute scramble.
If you are getting ready to tour a 55+ community and someone puts a buyer-broker agreement in front of you, you should understand it before signing. Gary and Rutsell can walk you through the agreement and answer your questions before you start touring homes together. Our Buyer Information page on the main NorCal55Plus.com site also gathers the buying guides we keep current.
Talk Through Whether Moving Makes Sense
Call or text Gary 916-595-4279 · Rutsell 916-695-2800, or send a message through our contact page.
Written by Gary Lee
DRE #01448722 · Brokered by eXp Realty of Northern California, Inc.
Gary Lee has been a full-time California REALTOR since 2004 and specializes in Northern California 55+ communities, relocation, resale and new construction. He personally researches the communities featured on NorCal55Plus through community visits, builder meetings, home tours, resident conversations and local market analysis. DRE #01448722.
