Buyer’s Agency Agreements in Phoenix: What to Know Before Signing
The Terrain: Why This Changed and When
The NAR settlement, reached in March 2024 and effective August 17, 2024, fundamentally changed how buyer’s agent compensation is structured and disclosed. Prior to the settlement, a buyer could tour homes with an agent, make an offer, and close — without ever discussing agent compensation directly. The seller’s listing commission covered both agents, and the buyer’s agent fee was invisible to the buyer in the transaction documents.
That era is over. Two rules now govern every Arizona buyer working with an MLS-access agent: buyer’s agent compensation can no longer be advertised on the MLS, and a written agency agreement is required before an agent shows a buyer any home. The agreement must clearly state how the agent is compensated — not a vague reference to whatever the seller offers, but a specific, objectively ascertainable amount.
The Two AAR Buyer Agency Forms
The Arizona Association of Realtors released two new and revised forms in August 2024 to address the settlement requirements. Understanding which form you are being asked to sign — and what each commits you to — is the foundation of protecting yourself in this process.
Form 1: Buyer-Broker Exclusive Employment Agreement (BBEEA)
The BBEEA is a comprehensive three-page exclusive contract between the buyer and the brokerage. It has existed in Arizona for decades but was significantly revised in 2024 to meet settlement requirements. Under the BBEEA:
The buyer commits to working exclusively with one agent for a defined term. If the buyer closes on any property during the term — or on any property the agent introduced, depending on the specific terms — the agent is owed the agreed commission. The agent is required to provide the full range of buyer representation services. The compensation amount must be specific and capped. A negotiability disclosure must be included confirming that the commission rate is not set by law.
The BBEEA is the appropriate form when a buyer has completed a consultation, is ready to actively search, and has established enough confidence in the agent to commit exclusively. It gives the agent the security to invest full time and resources in the buyer’s search.
Form 2: Agreement to Show Property (Non-Exclusive)
The Agreement to Show Property is a new one-page non-exclusive form created specifically in response to the settlement. It is intentionally short and simple. Under this form:
The buyer does not commit to working exclusively with the agent. The buyer can sign similar agreements with multiple agents simultaneously. Only the agent who actually represents the buyer in a purchase that closes is entitled to compensation. If Agent A uses this form to show a property on Monday and Agent B shows the same property Tuesday and writes the successful offer, Agent B receives the commission — Agent A has no claim.
The Agreement to Show Property is the appropriate starting form for buyers who want to see one or two homes before deciding whether to commit to a full exclusive relationship. It satisfies the written agreement requirement without locking the buyer into a long-term commitment.
| Feature | BBEEA (Exclusive) | Agreement to Show Property |
|---|---|---|
| Length | 3 pages, comprehensive | 1 page, simplified |
| Exclusivity | Yes — buyer committed to one agent | No — buyer can use multiple agents |
| Commission obligation | Agent owed fee if buyer closes during term or on introduced property | Only agent who closes the deal is owed fee |
| Term | Defined start and end dates (typically 30–180 days) | Typically per-showing or short-term |
| When to use | Buyer ready to commit after consultation | Initial showings, new buyer relationship |
| Risk to buyer | May owe commission if buyer cancels and buys independently | Low — no exclusivity obligation |
What Must Be in the Agreement: The Legal Requirements
Both the NAR settlement rules and Arizona law impose specific requirements on what a buyer agency agreement must contain to be enforceable. An agreement that does not meet these standards is not compliant — and an agent asking a buyer to sign a non-compliant agreement is operating outside the rules.
A compliant buyer agency agreement in Arizona must include:
Specific, objectively ascertainable compensation. The agreement must state a specific percentage of the purchase price, a specific dollar amount, or a clear formula for calculating the fee. Language such as “whatever the seller offers” or “the prevailing market rate” without a defined cap does not comply. The amount must be something both parties can calculate independently.
A compensation cap. The agreement must prohibit the agent from receiving more than the agreed amount from any source combined. If the agent agrees to 2.5% and the seller offers 3%, the agent cannot pocket the extra 0.5% — it must be credited to the buyer or returned.
A defined term. The agreement must have a specific start date and end date. Open-ended agreements without a defined term are not compliant and not enforceable in Arizona.
Services to be provided. The agreement should describe what the agent commits to do — representation during negotiation, inspection coordination, transaction management through closing, and so on.
Negotiability disclosure. The agreement must disclose that commission rates are fully negotiable and not set by law.
What to Negotiate Before Signing
Term Length
The agreement term is fully negotiable. A buyer who has never worked with an agent should not sign a six-month or twelve-month exclusive agreement at the first meeting. Experienced Phoenix agents are offering flexible terms — 30 to 90 days for initial commitments, with the ability to extend if the relationship is working. If an agent will not accept a shorter initial term, that is meaningful information about how they operate.
Compensation Amount
All commission rates are negotiable in Arizona. The agreement must state a specific amount — typically 2% to 3% of the purchase price, or a flat fee — but the specific number is between the buyer and agent. The buyer should understand that if the seller offers 2% and the agreed rate is 2.5%, the buyer will be asked to cover the 0.5% difference. Confirm in writing what happens when the seller’s offer falls short of the agreed rate.
What Happens When the Seller Offers Less
This is the most consequential term many buyers overlook. The agreement should clearly address the gap scenario: if the buyer agrees to 2.5% and the seller offers 2%, does the buyer pay 0.5% out of pocket, or does the agent accept 2% as full payment? Some agents will accept the lower amount if it comes from the seller; others will hold the buyer to the full agreed rate. Confirm this in writing before signing.
Cancellation and Termination
Confirm the cancellation terms. Can the buyer terminate the agreement early if the agent is not performing? Is there a fee for early termination? Most Phoenix agents are offering clean termination clauses given the post-settlement competitive environment for buyer clients. Know the protection period — the window after termination during which the agent can still claim a commission if the buyer closes on a property the agent introduced.
Property and Geographic Scope
The agreement should specify which properties or geographic areas are covered. A buyer searching in Goodyear and Surprise may not want an agreement that covers all of Maricopa County — that scope could implicate the agent’s commission in a transaction they had nothing to do with.
Open Houses: When You Do Not Need an Agreement
Per NAR rules, a written buyer agency agreement is not required to attend a public open house or to speak with an agent about their services. Buyers can freely attend open houses, speak with listing agents, and gather information without triggering any written agreement requirement.
How Buyer Agency Agreements Interact With Seller Concessions
The most common question after the settlement: “Does signing a buyer agency agreement mean I have to pay my agent out of pocket?”
No — not automatically. Signing the agreement establishes the compensation obligation and the amount. Where that money comes from is a separate question determined in the purchase offer. The buyer can request that the seller cover the buyer’s agent fee as a seller concession. In the current Phoenix market, approximately 56% of closings include seller concessions averaging $10,000, and seller-paid buyer’s agent compensation remains common practice.
The AAR November 2025 form updates further clarified this: seller concessions can be used for any buyer costs permitted by the lender — including loan costs, repairs, or buyer’s broker fees. The structure is transparent and documented, rather than buried in the commission split.
The February 2026 AAR Contract Update
The AAR Residential Resale Real Estate Purchase Contract was revised in February 2026 to reflect the post-settlement reality more precisely. The updated form now identifies the buyer’s broker as “Broker represents Buyer and will receive compensation from the transaction” — replacing the prior language that merely identified the broker as acting “on behalf of Buyer.” The Arizona Department of Real Estate requested this revision to ensure compliance with A.A.C. R4-28-701. The revision makes the compensation relationship transparent on the face of the purchase contract, consistent with the buyer agency agreement the buyer signed before touring.
Frequently Asked Questions
Do I have to sign a buyer agency agreement in Phoenix?
Yes, if you are working with an MLS-access agent and want to tour homes privately. Under NAR settlement rules effective August 17, 2024, agents must have a written agreement before showing homes. You do not need one for public open houses or general conversations with agents. Two AAR forms are available: the BBEEA for exclusive commitment, and the Agreement to Show Property for initial or non-exclusive showings.
What are the two types of buyer agency agreements in Arizona?
The Buyer-Broker Exclusive Employment Agreement (BBEEA) is a three-page exclusive contract committing the buyer to one agent for a defined term — the agent is owed the commission if the buyer closes during that term. The Agreement to Show Property is a one-page non-exclusive form for initial or single-property showings — only the agent who actually closes the deal is owed compensation. Buyers not ready to commit should start with the Agreement to Show Property.
What must a buyer agency agreement include in Arizona?
Under NAR settlement rules and Arizona law (A.R.S. 44-101(7) and 32-2151.02): a specific, objectively ascertainable compensation amount or rate (not open-ended); a compensation cap prohibiting the agent from receiving more than the agreed amount from any source; a defined term with start and end dates; a description of services to be provided; and a negotiability disclosure confirming the commission rate is not set by law.
Does signing a buyer agency agreement mean I pay my agent out of pocket?
Not automatically. Signing establishes the compensation obligation — it does not determine the source of payment. The buyer can request the seller cover the fee as a seller concession in the purchase offer. In the current Phoenix market, approximately 56% of closings include seller concessions averaging $10,000, and seller-paid buyer’s agent compensation remains common. If the seller declines, the buyer pays per the agreement.
Can I cancel a buyer agency agreement in Arizona?
Cancellation rights depend on the agreement type and terms. The Agreement to Show Property is non-exclusive with minimal cancellation risk. The BBEEA is binding for its defined term, but most Phoenix agents offer flexible cancellation provisions. Key risk: if a buyer signs a BBEEA, cancels, and subsequently purchases a property the agent introduced during the term, some agreements still obligate the commission. Know the protection period clause before signing an exclusive agreement.
Do I need a buyer agency agreement to attend an open house in Phoenix?
No. Per NAR rules, a written agreement is not required for public open houses or general conversations with agents. The requirement applies to private showings with an MLS-access agent. However, if you have already signed an exclusive BBEEA with one agent and find a property at an open house, you may still owe that agent a commission if you purchase it — the exclusivity clause follows you, not the showing method.
What should I negotiate in a buyer agency agreement before signing?
Five things to confirm or negotiate: (1) Term — start short, 30-90 days rather than 6-12 months; (2) Compensation — a specific rate or amount, not open-ended; (3) Gap policy — what happens when the seller offers less than the agreed rate; (4) Cancellation terms — whether you can exit early and whether there is a fee; (5) Property scope — which properties and geographic areas are covered and what the protection period is after termination.
Can I work with multiple buyer’s agents in Phoenix?
Under a non-exclusive Agreement to Show Property, yes — you can sign similar agreements with multiple agents and only owe compensation to the one who actually closes your deal. Under a BBEEA exclusive agreement, no — working with another agent while under an exclusive BBEEA could result in owing two commissions. Never sign an exclusive BBEEA with one agent while actively shopping with another.
Before You Sign Anything, Understand What You Are Agreeing To
Ron and Jill walk every buyer through the agency agreement process before a single home is toured — what it covers, what it commits you to, how the compensation works in the current West Valley market, and how the fee gets structured into the offer. No pressure, no surprises.
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