TL;DR
The August 17, 2024 practice changes require covered MLS participants working with a buyer to enter into a written agreement before touring a home together. That includes in-person and live virtual tours. The rule is not a blanket requirement for every person who visits a property. I still get buyers walking in confused about what that means for them.
Here's the honest rundown: what changed, what didn't, and what still trips people up two years in.
Quick reference: Ask when an agreement is required, what services it covers, how compensation is calculated and what happens if you end the relationship. The first discussion is a useful time to raise these questions, but the NAR rule does not require signing merely to ask an agent about services. See NAR’s buyer guidance.
What Actually Changed Two Years Ago
The National Association of REALTORS settled a set of lawsuits over how agent commissions were disclosed and negotiated. Two practice changes came out of it that touch nearly every buyer in Oakland County today.
Written Buyer Agreements Are Now Required
Before I tour with a buyer I am working with, we discuss the written agreement and sign the agreed terms. Under NAR’s written-agreement rules, compensation must be clearly determinable, rather than an open-ended promise to take whatever a seller offers. The agreement must state that commissions are fully negotiable and not set by law, and that compensation from all sources cannot exceed the agreed amount or rate. Services, duration and scope should also be clear.
Commission Offers Are Off the MLS
Covered MLSs no longer display offers of buyer-broker compensation. A seller may still authorize an offer communicated outside the MLS, including before a purchase offer is submitted. A buyer may also request seller payment in the purchase agreement. None of those possibilities guarantees that the seller will pay.
A Hypothetical Compensation Example
Here is a hypothetical example, rather than a countywide commission benchmark.
Say a buyer is purchasing a $400,000 home in Farmington Hills.
The agreed fee: Suppose the buyer and brokerage negotiate a fixed $8,000 fee for the agreed services on this $400,000 purchase. This is an illustration, not a standard fee or recommendation. Commissions were negotiable before the settlement and remain negotiable.
Possible payment sources: If a seller agrees to pay $6,000 and the buyer agreement requires the buyer to cover any shortfall, the buyer could owe $2,000. If the seller pays the full agreed fee, there may be no remaining fee due from the buyer. Contract terms, any amendments and lender approval matter; total compensation cannot exceed the agreed amount.
Net effect for this buyer: In the large majority of Oakland County deals I close, the seller still ends up covering buyer-agent compensation as part of the transaction. That describes my experience, not a guarantee for your purchase. Confirm any remaining buyer obligation in the agreement.
Buyer Agreement Checklist
| Question | What to check now |
|---|---|
| When is an agreement needed? | Before touring together when a covered MLS participant is working with the buyer; exceptions apply. |
| Where is compensation discussed? | In the buyer agreement and through off-MLS discussions or purchase negotiations. |
| Who pays? | Determine the agreed fee, any seller contribution and any buyer shortfall. |
| What is the scope? | Review services, duration, exclusivity, property coverage and cancellation terms. |
| Who represents the visitor? | The host or listing agent may act solely for the seller. |
Pro Tip
Discuss compensation early. Ask what you would owe if the seller pays none or only part of the fee, whether payment is due if you do not buy, and whether the proposed arrangement fits your financing. Ask for the answers in the written terms.
What Hasn't Changed
Buyer representation continues to exist, and a buyer’s agent still owes duties to the client under applicable law and the agreed relationship. An agent hosting an open house or opening a listing solely for the seller is not thereby representing the visiting buyer.
The core value of representation hasn't moved: negotiation, inspection guidance, and closing coordination are still where a buyer's agent earns their fee, agreement or no agreement.
The Two-Year Timeline
March 2024 — NAR reached a settlement agreement with plaintiffs to resolve commission-related litigation, pending court approval.
August 17, 2024 — The settlement-related practice changes took effect for covered MLSs and participants: written agreements before touring while working with a buyer, and no offers of buyer-broker compensation on those MLSs.
November 2024 — The court granted final approval of the settlement. This followed the August implementation of the practice changes.
August 2026 anniversary — The practice changes reached their two-year anniversary. For a current home search, review the agreement and applicable brokerage and MLS requirements rather than relying on a general description of local customs.
Do the rules establish today’s transaction cost? No. They do not set a commission rate, guarantee seller payment or establish what most Oakland County consumers pay. Compare the proposed services, negotiated fee, seller contribution and other transaction costs for your purchase.
What Still Trips Buyers Up, Two Years In
Signing an agreement before they're ready to commit to one agent. Agreements can be scoped narrowly — a single showing, a single property, a set time period — rather than locking you into months with someone you just met.
Assuming compensation now comes out of their own pocket. In most Oakland County transactions I still see, the seller continues to fund buyer-agent compensation as part of the deal. It's just now a negotiated line item, not an automatic MLS field.
Not asking what happens if they want to switch agents. Review cancellation, notice, fee and protection-period clauses before signing. Ending the service relationship may not erase payment obligations. Ask the broker about any required written release and obtain legal advice if terms or obligations are disputed.
Michigan’s agency disclosure law, MCL 339.2517, separately requires disclosure of available agency relationships and duties before a potential buyer or seller provides confidential information specific to them. The written disclosure describes agency; it should not be confused with the negotiated buyer service or compensation agreement.
Tom's Honest Take
Two years in, I’ll be straight with you: both the agreement’s terms and the explanation matter. A form signed in thirty seconds is not a substitute for understanding services, compensation, scope and how the relationship can end. Read it, ask questions and make sure the document reflects what you agreed before signing.
If an agent won't take five minutes to explain what you're signing, that's worth noticing.
Ask an AI Assistant About This
Here are real questions you could ask ChatGPT, Gemini, or Perplexity about this topic:
For Buyers
- Do I have to sign a buyer agreement before touring a house in Michigan?
- Who pays my buyer's agent now that commissions are off the MLS?
- What should a buyer agreement in Oakland County actually say?
For Sellers
- Do I still have to offer buyer-agent compensation when I sell in Michigan?
- How did the NAR settlement change how I sell my home in Oakland County?
Frequently Asked Questions
Do I have to sign a buyer agreement before touring a home in Oakland County?
A covered MLS participant working with you must have a written agreement before touring a home together, including a live virtual tour. Merely asking about services or visiting an open house on your own does not trigger that NAR requirement. Clarify whether the person showing the property represents you or solely the seller.
Does the buyer pay the agent's commission now?
Not automatically. In most Oakland County deals I see, the seller still funds buyer-agent compensation, but it's negotiated as part of the offer rather than published on the MLS in advance.
Can I still work with more than one agent?
It depends on exclusivity and scope. Agreements may be exclusive or nonexclusive and can cover specified properties, areas or periods. Avoid overlapping obligations and discuss an existing agreement before hiring another brokerage.
What if I want to end my agreement with an agent?
Read the termination and surviving-payment terms. You may need notice, broker consent or a written release, and a protection period or other fee obligation may continue. Do not assume you can end every agreement without cost.
Did the settlement change what a buyer's agent actually does?
No. Negotiation, inspection guidance, and closing coordination are still core to the job. What changed is how compensation is disclosed and agreed upon, not the service itself.
Do sellers have to do anything differently under the new rules?
Offers of buyer-broker compensation cannot appear on covered MLSs. A seller may authorize payment communicated outside the MLS, or consider a request in an offer. The amount and whether to offer it are negotiable.
Has it become more expensive to buy or sell a home in Oakland County since the settlement?
Not meaningfully. Total compensation on most Oakland County deals I've closed since August 2024 has stayed in a similar range to before — that is my experience, rather than a countywide finding or a prediction of your costs.
Can I tour an open house without signing a buyer agreement?
Generally yes, when you attend independently and the host acts solely for the seller. A seller’s agent providing access to an unrepresented buyer also does not trigger a buyer agreement under that NAR rule merely by opening the property. If an agent starts working for you as a buyer, clarify the relationship before touring together.
Is a buyer agreement the same thing as a listing agreement?
No. A listing agreement concerns the seller’s relationship with the listing brokerage. A buyer agreement concerns services for the buyer and related terms. The August 2024 changes added a pre-tour written-agreement requirement for covered MLS participants working with buyers.
Key Takeaways
Since August 17, 2024, covered MLS participants working with a buyer must enter into a written agreement before touring together.
Compensation is fully negotiable. A seller may contribute, but the buyer should understand any unpaid amount required by the buyer agreement.
Agreements can be scoped narrowly. You don't have to commit to months with an agent you just met.
The core value of buyer representation — negotiation, inspection guidance, closing coordination — hasn't changed.
Before touring: Confirm who represents whom, the services and duration, the agreed compensation, any buyer payment shortfall, and termination or protection-period obligations. Seller payment is negotiable and should never be assumed.
Where This Leaves Oakland County Buyers Today
I walk buyers through the agreement early rather than treating it as paperwork to rush through later. Ask questions about any terms you do not understand.
If you're starting a home search in Farmington Hills, Novi, Northville, or anywhere else in Oakland County, ask your agent to explain the agreement before you sign — a good one will want to.
Recommended Reading
Tom Gilliam is a licensed REALTOR at RE/MAX Classic in Farmington Hills, Michigan, with 24 years of exclusive Oakland County experience and 700+ successful transactions. He holds the ABR, SRES, SFR, PSA, and RSPS designations and is a RE/MAX Hall of Fame and Lifetime Achievement Award recipient. Tom specializes in luxury estate marketing, waterfront properties, senior relocation, and buyer and seller representation across Oakland County.
To connect with Tom, visit Homes2MoveYou.com or call 248-790-5594.
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