After the NAR Settlement: Buyer Agreements, Off-MLS Compensation & Winning Offers in SoCal (2025 Guide)

Why this matters now

Two practice changes now shape every transaction:
• Written buyer agreements are required before an MLS participant can tour homes with a buyer (in-person or live virtual). National Association of REALTORS®
• Offers of compensation are prohibited in the MLS; compensation is still negotiable off-MLS between the parties. National Association of REALTORS®

In Southern California, CRMLS removed compensation fields starting Aug 13, 2024, and adopted rules reflecting these changes—affecting San Diego and Riverside listings your clients see every day. go.crmls.orgblog.psar.org

What your written buyer agreement must include (plain English)

Per NAR’s requirements, your agreement must:

1. State the compensation (amount/rate or how it’s calculated), clearly and not open-ended.
2. Confirm no one pays more than the amount agreed with the buyer.
3. Disclose that commissions are negotiable and not set by law.
4. Include any state-required provisions.
   NAR also recommends clarity on scope of services, term/termination, dispute resolution, and consumer protections. National Association of REALTORS®

California has updated C.A.R. forms to operationalize this—e.g., BRBC (Buyer Representation and Broker Compensation), PSRA (Property Showing & Representation), and SPBB (Seller Payment to Buyer’s Broker). These reflect the new landscape and how a buyer’s broker can be paid. California Association of Realtors

How compensation is handled now

• Off-MLS negotiation: Listing brokers/sellers may discuss compensation off-MLS (flyers, emails, their own site, etc.). Buyers can also request broker compensation within the purchase offer. National Association of REALTORS®
• Seller concessions: Sellers can offer concessions buyers may use toward closing costs or buyer-broker fees, where allowed by the loan program. MLSs may have fields for concessions at close, but they cannot be conditioned on using or paying a buyer broker. National Association of REALTORS®
• CRMLS mechanics: Compensation fields were removed from active-status listings; reporting at close now distinguishes concessions and buyer-broker fee categories. blog.psar.org

Buyer strategy in San Diego & Riverside

1. Sign early. Execute a clear, narrow-scope buyer agreement before touring. Define term, covered areas, and a compensation formula that fits your price band. National Association of REALTORS®
2. Price your representation. Decide whether you’ll pay directly, seek seller payment through the offer, or use concessions. Know what your loan allows. National Association of REALTORS®
3. Use transparent offers. When asking the seller to pay the buyer-broker fee, reference your signed agreement and include a clean, lender-friendly structure. C.A.R. provides SPBB for this purpose. California Association of Realtors
4. Strengthen terms, not just price. Shorten inspection periods where feasible, verify insurance and HOA docs early, and deliver a complete file to the lender to avoid surprises.
5. Local nuance. In multiple-offer pockets (coastal San Diego, desirable Riverside neighborhoods), emphasize certainty: larger EMDs, proof of funds, and a lender letter that acknowledges any planned concessions.

Seller strategy under the new rules

1. Set expectations in the listing agreement. Compensation to the listing broker is separate from any buyer-broker payment; discuss if and how you’ll respond to offers asking you to pay the buyer’s broker. Updated C.A.R. listing forms unbundle these. California Association of Realtors
2. Use concessions strategically. If your buyer pool needs help with closing costs or buyer-broker fees, targeted concessions can widen demand—without advertising compensation in the MLS. National Association of REALTORS®
3. Win the appraiser. Provide upgrades lists, recent permits, and comps. If concessions are used, structure them so the net value still appraises.

VA borrowers: a key 2025 update

The VA now permits veterans to pay buyer-broker fees (previously restricted), beginning Aug 10, 2024, subject to safeguards. That means VA buyers can use negotiations or concessions to solve representation costs when needed—coordinate with your lender and agent. VA News

What to bring to your first strategy meeting

• A signed buyer agreement (BRBC or PSRA), or a draft with your preferred scope/term. California Association of Realtors
• A compensation plan (direct, concession, or seller-paid through the offer). National Association of REALTORS®
• Your pre-approval and estimated cash-to-close at two price points.
• A short list of target neighborhoods, HOA/condo preferences, and must-have features.

Quick FAQ

Can sellers still pay the buyer-broker fee? Yes—off-MLS through negotiation, or via concessions or purchase-agreement terms. It just can’t be displayed or conditioned in the MLS. National Association of REALTORS®+1
Do I need a buyer agreement to attend an open house? The showing rules hinge on whether an agent is “working with” you; in practice, SoCal brokers use PSRA/BRBC forms to stay compliant when touring. National Association of REALTORS®California Association of Realtors
Will this lower commissions? It increases transparency and negotiation. Outcomes vary by market, price point, and service package. National Association of REALTORS®

This article is informational and not legal, tax, or lending advice. Always consult your broker and lender.