Buyer's agent compensation in Arizona.
Agreed in writing,
before the first tour.
Doug Palmer is a REALTOR® with My Home Group Real Estate. Since August 17, 2024, an agent who participates in an MLS and is working with a buyer must have a signed written agreement before touring a home, and that agreement sets a specific amount or rate the brokerage can be paid. The seller can still pay some or all of it, but under the standard Arizona REALTORS® agreement, any part the seller does not pay is owed by the buyer, subject to loan program rules such as those for VA loans.
The rules since August 17, 2024.
In March 2024, the National Association of REALTORS® (NAR) reached a settlement resolving claims brought on behalf of home sellers related to broker commissions. As part of it, new practice rules for agents who use an MLS took effect August 17, 2024. An MLS, or multiple listing service, is the shared database agents use to list and search homes for sale.
- Agreement before touring.An agent who participates in an MLS and is working with a buyer must sign a written agreement with that buyer before touring a home. This covers in person tours and live virtual tours.
- A specific amount.The agreement must state the agent's compensation as an amount or rate that can be objectively determined, such as a flat fee, a percentage or an hourly rate. It cannot be open ended, like whatever the seller offers.
- A ceiling.The brokerage cannot receive more than the agreed amount or rate from any source.
- Negotiable, not set by law.The agreement must say in conspicuous language that commissions are fully negotiable and not set by law.
- No offers on the MLS.A seller may still offer to pay the buyer's agent, but that offer can no longer be posted on the MLS.
Three ways the agent gets paid.
Compensation is negotiable. It is set by the agreement between the buyer and the buyer's brokerage, not by law, a REALTOR® association or the MLS. The agreement sets how much the brokerage earns. Who actually writes the check is a separate question, and there are three answers.
The buyer pays
The buyer pays the agreed amount to the brokerage. Under the Arizona REALTORS exclusive agreement, payment is due at close of escrow unless the parties agree otherwise in writing.
The seller pays
The seller or the listing broker agrees to pay the buyer's agent. This is usually requested in the buyer's offer. Arizona REALTORS calls its Seller Compensation Addendum the preferred way to make that request, because it states the amount. Since the November 2025 revision, the purchase contract also lists broker compensation as an allowed use of seller concessions, within the lender's limits. A seller concession is money the seller agrees to put toward the buyer's costs.
A mix
The seller pays part and the buyer pays the rest. Whatever the seller pays is credited against what the buyer owes. If a seller offers more than the agreed amount, the brokerage still receives only the agreed amount. Any excess can be negotiated in the purchase contract, often as a credit to the buyer, within the lender's limits. Since the November 2025 revision, the purchase contract also has both parties consent, by initials, to a broker being paid by more than one party to the transaction.
If the seller pays less.
Under the Arizona REALTORS Buyer-Broker Exclusive Employment Agreement, the buyer may ask the seller to pay the brokerage's compensation in the offer. Any part the seller or listing broker does not pay is paid by the buyer, subject to loan program rules such as those for VA loans. If the seller pays nothing, the buyer owes the full agreed amount, with the same exception.
That is how the standard form works. Your obligation is whatever your own signed agreement says, so read the compensation section before you sign it. A buyer and the brokerage can change the agreement later, but only in a writing both of them sign.
What the Arizona agreement covers.
Arizona REALTORS (AAR), the state REALTOR association, rewrote its buyer agreements for the settlement and released them August 1, 2024. There are two. The Buyer-Broker Exclusive Employment Agreement makes one brokerage your exclusive representative for a set term. The Buyer-Broker Agreement to Show Property is a one page, non exclusive form for buyers who do not want that commitment; a buyer can sign it with several brokers and owes compensation only to the broker named on the accepted purchase contract.
Arizona law also sets ground rules. Under A.R.S. 32-2151.02, a real estate employment agreement must be clear and unambiguous, state all material terms including the broker's compensation, have definite start and end dates, and be signed by all parties. An agent also cannot ask a buyer already under an exclusive agreement to sign another one unless the buyer acknowledges in writing that doing so could mean paying more than one commission.
- Term.A start date and an expiration date, ending at 11:59 p.m. Mountain Standard Time. There is no minimum length. The parties negotiate it.
- Scope.The property type and the geographic area covered. If a single address is written in, the agreement covers only that property.
- Compensation.One method is checked: a percentage of the purchase price, a fixed dollar amount, or another stated basis. The buyer initials the notice that compensation is negotiable.
- Retainer.Optional. Applies only if checked. A retainer under the form is non-refundable and earned when paid, and the form states whether it is credited against the compensation.
- After the term ends.The buyer can still owe compensation for a purchase that went under contract or into escrow during the term, or for a property the agent showed or negotiated on if the buyer contracts on it within the number of days written into the agreement after it expires.
- Ending the agreement.The agreement can be changed or ended early only in a writing signed by the buyer and the brokerage. If you want out early, ask, and put the change in writing.
- More than one agreement.The form warns that signing exclusive agreements with more than one broker can make a buyer liable to pay more than one broker.
My terms, in plain numbers.
I am a REALTOR® with My Home Group Real Estate. My buyer compensation is 3% of the purchase price, under a written agreement between you and my brokerage, My Home Group Real Estate. There is no retainer and no upfront fee. Compensation is paid to the brokerage at close of escrow. As in the standard Arizona REALTORS® form, the agreement also makes it due if a purchase falls through because the buyer breaches, or if you buy a home I showed you or negotiated on within the protection period after the agreement ends.
Where it makes sense, I ask the seller to pay this compensation as part of your offer. If the seller pays less than 3%, or nothing, you cover the balance, unless your loan program limits what a buyer can pay. VA loans have their own rules, and the agreement addresses them. Asking the seller to pay is part of the offer, so I will tell you when it could make your offer less competitive and let you decide. We go over this before you sign, so the number is clear from the first tour.
Commission is negotiable.
Common questions
Do I have to sign an agreement before touring a home with an agent?
Yes, if the agent participates in an MLS. Since August 17, 2024, those agents need a written agreement with you before touring a home, in person or by live virtual tour.
Can I walk into an open house without signing anything?
Yes. NAR says you do not need a written agreement to visit an open house on your own or to ask an agent about their services. The agent hosting an open house works for the seller and does not need one with you. If you have already signed an exclusive buyer agreement, bring your agent on your first visit to any home, including new build models, or the seller or builder may refuse to pay toward your agent's compensation.
Who pays the buyer's agent in Arizona?
The buyer, the seller or listing broker if the seller agrees, or a mix of both. The buyer's agreement sets the amount; the offer can ask the seller to pay it.
Is the buyer's agent commission negotiable?
Yes. Compensation is not set by law or by any REALTOR® association. It is set by agreement between the buyer and the agent's brokerage, and the agreement must say so.
Can the seller still pay my agent?
Yes. The seller can agree to pay in the purchase contract, often through the Seller Compensation Addendum, or through seller concessions where the lender allows. The offer just cannot be posted on the MLS.
What if the seller offers nothing?
Under the standard Arizona REALTORS exclusive agreement, the buyer pays the full agreed amount, subject to loan program rules such as those for VA loans. You can still ask the seller to pay it in your offer.
Can my agent be paid more than our agreement says?
No. The brokerage cannot receive more than the agreed amount or rate from any source. If a seller offers more, the excess can be negotiated in the purchase contract, often as a credit to you, within your lender's limits.
Can the agreement say my agent gets whatever the seller offers?
No. The amount must be objectively ascertainable, such as a percentage or a flat fee, and cannot be open ended.
How long does a buyer agreement last?
As long as the dates written in it. Arizona law requires a definite start and end date, and there is no minimum term.
Do I need a lawyer to review the agreement?
It is a binding contract. If you have a question about a specific clause, a real estate attorney can answer it.
Questions about buyer's agent compensation?
Before you tour, I will walk you through the My Home Group Real Estate buyer agreement line by line, including how we ask the seller to pay. Call or text 480-485-4261.
This page is general information, not legal or tax advice. Sources: National Association of REALTORS®, Homebuyers: What the NAR Settlement Means for You, Written Buyer Agreements 101, What the NAR Settlement Means for Home Buyers and Sellers and Consumer Guide to Open Houses and Written Agreements; Arizona REALTORS®, August 2024 forms release, Part 2(a): Buyer Broker Exclusive Employment Agreement, Buyer-Broker Exclusive Employment Agreement FAQ, Buyer-Broker Agreement to Show Property FAQ, NAR settlement practice change FAQ, notice of November 2025 purchase contract revisions, and the current Buyer-Broker Exclusive Employment Agreement form; and Arizona Revised Statutes A.R.S. 32-2151.02, real estate employment agreements. All checked 28 October 2026.