The use of Buyer Representation Agreements became widespread in 2024 due to the requirements imposed by the NAR settlement. Then, on January 1st 2025, AB 2992 went into effect, making buyer representations a requirement under California law. The following is the enforceable Law for all Realtors.

Timing: AB 2922 requires a buyer representation agreement as soon as practicable but no later than execution of the buyer’s offer to purchase.

  • Compare : The NAR settlement requires a written agreement before showing a home when working with a buyer.

Enforcement: AB 2992 will be enfoced by the Department of Real Estate (DRE) Violations can expose real estate licenseees to discipline under the Real Estate Law.

Compare: The NAR settlement relies on the MLS to enforce those terms applicable to it. Non-compliance may force real estate licensees loss of legal protection and further consequences. DRE does not enforce the terms of the NAR settlement.

Scope: Applies to all Real Estate transactions including commercial, vacant land and 5 plus residential.

Compare: The NAR settlement encompasses residential 1-4 sales

Term Limitation: AB 2992 voids buyer representation agreements if more than 3 months in length or made in violation of any provision of AB 2992

Compare: The NAR settlement has no such provision; However, the C.A.R. forms incorporate the 3 month rule.

It is important to note that Elite Life Realty, Inc. and CEO is always in compliance to all Laws in place for the protection and in the best interest of ALL parties involved.

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