No law requires one, but most buyers use an agent: 88% did in the National Association of REALTORS® 2025 survey. Since August 17, 2024, if you work with an agent who uses the MLS, you sign a written agreement before touring that states what the agent will be paid. That amount is negotiable, and sellers can still agree to cover it.
What changed with the 2024 NAR settlement?
Starting August 17, 2024, an agent who belongs to an MLS and is working with a buyer must have a written agreement in place before touring a home, in person or by live virtual tour.
Offers of compensation between agents are no longer allowed on MLS platforms. Sellers can still offer compensation off the MLS, and they can offer buyer concessions on the MLS, such as help with closing costs.
What must a buyer agreement include?
Under NAR's rules, the agreement must state the amount or rate the agent will be paid, or how it will be determined, in terms that are objective and not open ended. Language such as "whatever the seller offers" does not qualify.
It must also say the agent cannot receive more than the agreed amount from any source, and it must state clearly that commissions are not set by law and are fully negotiable.
What does Tennessee add?
The Tennessee Real Estate Commission's rule on exclusive buyer representation agreements requires the licensee to tell you, and confirm in writing, three things before you sign: that you should arrange showings through that licensee, that you should tell other licensees you meet that you are represented, and whether you will owe a commission if you buy a home without that licensee's help.
Read that last point closely, especially if you plan to look at new construction or homes for sale by owner. If you have questions about the contract itself, talk to a Tennessee real estate attorney.
Who pays the buyer's agent now?
Your agreement sets the amount. You can ask the seller to pay some or all of it as part of your offer, and the seller can accept, counter, or decline. Whatever is agreed shows up on your settlement statement at closing.
Many buyers still choose representation. In NAR's 2025 survey, 88% of buyers and 91% of sellers used an agent.
Questions
Do I have to sign an agreement just to see a house?
If you work with an agent who belongs to an MLS, yes. Since August 17, 2024, that agent needs a written agreement with you before touring a home, including a live virtual tour. The agreement must state the agent's compensation in objective terms, and the amount is negotiable.
Can I negotiate what my buyer's agent is paid?
Yes. NAR's rules require every written buyer agreement to state clearly that broker commissions are not set by law and are fully negotiable. The agreement must give a specific amount, rate, or formula, and the agent cannot collect more than that amount from any source, including the seller.
Can the seller still pay my agent?
Yes. Offers of compensation can no longer appear on the MLS, but sellers can still agree to pay a buyer's agent off the MLS, and they can offer concessions such as help with closing costs. You can also ask for it in your offer, and the seller can accept, counter, or decline.
What if I buy a home without my agent?
Check your agreement. Tennessee Real Estate Commission rules require the licensee to tell you, in writing and before you sign an exclusive buyer agreement, whether you will owe a commission if you buy a property without their help, either through another licensee or directly from an owner.
Buying from out of town? Read Relocating to East Tennessee: Choosing the Right Tri-Cities Town.
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