Signing a buyer representation agreement in California: what AB 2992 requires and what to check first

California put real statutory guardrails around buyer representation in 2025 — stricter than the national settlement’s rules, and genuinely protective if you know what they are. Here’s what the law requires, and what it leaves for you to negotiate.

What AB 2992 requires

Effective January 1, 2025, a California agent representing a buyer must have a written buyer-broker representation agreement — with every buyer, for every property type, MLS-listed or not. The agreement must be signed as soon as practicable, and no later than the moment your purchase offer is executed. (In practice, the national settlement rules move that earlier still: MLS-participant agents need it signed before touring homes with you.)

Two provisions do the heavy lifting for consumers:

The three-month cap. No buyer representation agreement with an individual may run longer than three months from signing. Extensions require a newly signed agreement, each itself capped at three months. The cap doesn’t apply to corporate, LLC, or partnership buyers — it exists to protect people.

No auto-renewal. Agreements cannot renew themselves. Every continuation is a fresh, affirmative decision — made after you’ve seen how the agent actually performs.

The enforcement teeth matter too: an agreement that doesn’t conform is void and unenforceable — the agent can’t collect under it — and non-compliance is a licensing-law violation.

The four terms to read before signing

The statute sets the outer bounds; the agreement’s substance is still negotiated. Read these four terms in every candidate’s form:

1. The fee. Under the settlement rules it must be specific and objectively ascertainable — a percentage, flat fee, or rate, not “whatever the seller offers.” Understand the number, and understand what happens if a seller’s concession covers less than it: does the agreement make you responsible for the gap? (It usually does — which is fine, as long as you knew.)

2. The duration. Three months is the ceiling, not the norm you must accept. For a defined search in a market you know, shorter is reasonable. For a from-scratch relocation search, three months is fair — and the cap means you’re never trapped longer than that anyway.

3. Exclusivity and scope. Exclusive to this agent for all properties, everywhere? Or scoped to a county, a property type, a price band? A buyer looking at both Tahoe cabins and Sacramento houses can reasonably use different specialists under scoped agreements. Ask; the form’s default is not the law.

4. The exit. How do you terminate if it isn’t working, and what trailing obligations survive — particularly for homes the agent already showed you? A clean, mutual termination clause is a sign of an agent confident in their own service.

The agreement is an interview exhibit

Here’s the underused move: ask each agent candidate for their buyer representation agreement before you commit, and read them side by side. The documents are evidence. An agent whose form is clean, compliant, and plainly explained is showing you how they’ll handle the far more complex documents ahead. An agent whose form overreaches — terms past the cap, vague fees, no exit — is showing you something too. Comparing candidates’ agreements is a standard exhibit in our buyer-side vetting, and it’s a comparison you can run yourself with the published scorecard.

Questions people ask

Can I work with an agent casually before signing anything?

Briefly, yes: open-house conversations and ministerial questions don't require an agreement. But under the national settlement rules, an MLS-participant agent needs your signed agreement before touring homes with you, and California law requires it no later than your offer. Practically, the signing conversation happens early — which is good: it forces the fee discussion before you're emotionally attached to a house.

What happens after three months?

The agreement simply expires. If you want to continue with the agent, you sign a new one — also capped at three months. Auto-renewal clauses are prohibited; an agreement claiming to renew itself is telling you the agent (or their form) isn't compliant. The cap exists so you re-decide, with three months of evidence about how they actually work.

Am I locked in if it's not working?

Read the cancellation clause before signing — that's where agreements differ most. Many are terminable with notice; some exclusive agreements hold you (or claim compensation on homes they showed you) until expiry. The three-month cap limits your worst case in California, but negotiating a cleaner exit up front is better than relying on the cap. And non-exclusive agreements exist; you can ask.

Does the agreement mean I pay the agent out of pocket?

It means you're responsible for ensuring the stated fee gets paid — but how it's funded is negotiated in each offer. Sellers commonly cover some or all of it through concessions; your agent can't collect more than the agreement's stated amount from any combination of sources. The full picture of who pays what post-settlement is in our companion guide on buyer-agent compensation.