Virginia buyer agent agreements explained (after the NAR settlement)

Why does Virginia require a buyer agreement before showings?

Virginia has required a written brokerage agreement before an agent can represent you — including showing you property — since July 2012, well before the national rule changes. The purpose is disclosure: you should know who the agent works for, what they will do for you, and how they are paid before you rely on their advice. The August 2024 NAR settlement made a similar requirement a nationwide MLS rule and, more importantly, changed how buyer agents are paid, which is why the compensation clause now deserves more attention than it used to get.

What does the agreement cover?

Representation. That the brokerage represents you, the buyer, and owes you the duties in Virginia’s real estate agency statute: loyalty, confidentiality, disclosure of material facts, and reasonable care. Term. How long the agreement lasts; 90 days is a reasonable starting point, and it can be extended. Scope. Whether it covers any property you buy, only certain areas, or a single property. Compensation. What the brokerage is paid, usually a percentage of the purchase price or a flat fee, and — the critical part — who pays it. Termination. How either party can end it and whether any fee is owed if you buy a property the agent showed you after termination.

How does my agent get paid now?

Before the settlement, the seller’s brokerage typically offered a buyer-agent commission through the MLS and the buyer never wrote a check. Now, MLS listings cannot advertise buyer-agent compensation. Instead, your agreement states what your agent is owed, and that amount is satisfied in one of three ways: the seller agrees to pay it as part of your offer (still the most common outcome in Central Virginia), the seller pays part and you pay the remainder at closing, or you pay it yourself. When you write an offer, your agent should tell you what the seller has indicated they will cover and structure the offer so the fee is handled explicitly. A good agent explains this before the first showing, not at the closing table.

What should I negotiate before signing?

The fee and how a shortfall is handled; the term (shorter is better to start — you can extend); a cancellation clause that lets you end the agreement with written notice; and whether the agreement is exclusive to one property or one area if you are only exploring. Ask what happens if you buy a new-construction home directly from a builder, or a for-sale-by-owner property; both should be addressed. Keeton & Co’s agreement can be cancelled by either party with written notice, and we walk through each compensation scenario with a worked example before you sign.

Is an agreement a bad thing for buyers?

Mostly no. It formalizes what was already true — your agent works for you — and forces a conversation about money that used to be hidden. The risk is signing a long, exclusive agreement with an agent you have not vetted. Interview first, then sign, and keep the term short until you know the relationship works. Our buyer page covers what a Keeton & Co buyer’s agent does from pre-approval through closing.