Do home buyers have to pay their agent's commission now in California? The short answer: usually not out of pocket, but the rules did change. Since August 17, 2024, seller-paid buyer agent compensation can no longer be advertised on the multiple listing service, and since January 1, 2025, California buyers must sign a written buyer-broker agreement that states exactly how their agent gets paid. Most buyers in Novato and Petaluma still do not write a check to their agent at closing, but the agreement you sign before touring homes matters more than ever.
What changed with the commission rules?
The changes trace to the National Association of REALTORS commission settlement that took effect August 17, 2024. Two things buyers notice most: offers of compensation to buyer's agents can no longer be posted on the MLS, and sellers are no longer required to offer that compensation as a condition of listing their home. None of this capped or fixed commissions, which remain fully negotiable between you and your agent. It simply moved the conversation out of the listing and into the agreements you sign.
The buyer-broker agreement you sign before touring
Under California's AB 2992, in effect since January 1, 2025, a buyer-broker agreement must be in writing, must state the compensation amount or rate, and must be signed before you make an offer. In practice with most REALTORS, you sign it before you tour your first home. The agreement spells out who is expected to pay: the seller, you, or a combination. It is not a trick and it is not a trap. It is the clearest answer to the old question of how your agent gets paid, in writing, before you spend an afternoon looking at houses.
So who actually pays in Novato and Petaluma?
In most transactions I handle, sellers still agree to cover the buyer's agent compensation. That is now negotiated off the listing and written into the purchase contract as a concession, which is why it can vary from deal to deal and from town to town. If the seller contributes less than your agreement calls for, you are responsible for the difference; if the seller covers the full amount, you pay nothing out of pocket toward your agent at closing. The key is knowing which case you are in before you write an offer, and your agent should walk you through that line item the same way escrow walks you through title and recording fees.
Questions to ask before you sign a buyer-broker agreement
- How are you compensated, and who is expected to pay?
- If the seller's contribution comes up short, what do I owe?
- Is the rate negotiable, and what services does it cover?
- What happens if I buy a for-sale-by-owner home or a new build?
None of this should feel like fine print. In my office, the commission conversation happens in plain language before we ever look at a house, and you will know exactly what you might owe before you sign anything. If you are starting to shop in Marin or Sonoma and want a straight answer on the numbers, call or text me at (415) 328-2637, or send a message. Love where you live.
Dig deeper
Written by
Peter Schardt
21 years in real estate, 100+ homes sold, and a lifetime in the North Bay. Sales Associate · 01702383 · California.
