The NAR Settlement and Buyer Agreements: What Colorado Buyers Need to Know

Watch: Jason Levi explains the August 2024 buyer agreement change · Watch on YouTube →

What Changed on August 17, 2024?

In his July 2024 video, Jason explained the deadline that came out of the NAR lawsuits. Starting August 17, 2024, any agent needing to show a buyer a home had to sign a buyer agency agreement with that buyer first. He noted the rule applied nationwide, and that it was non-negotiable for any agent with the REALTOR designation, meaning agents who have agreed to follow the REALTOR Code of Ethics.

The agreements themselves were not new. Jason pointed out that they had been around for a long time. What changed was the timing. Before, an agreement had to be signed before writing an offer. After the deadline, it had to be signed before the first showing.

In the same video, Jason said that buyer agent commissions were not going away, and that compensation is a separate topic. Practice around buyer agreements and compensation may have changed since 2024, so ask us how it works today before you sign anything.

Why a Buyer Agreement Matters in Colorado

Jason explained a Colorado detail many buyers do not know. Without a buyer agency agreement, there is no official relationship between you and the agent. You are what Colorado calls a customer, and you are not represented.

Once you sign, the agent officially represents you. They take on a fiduciary responsibility and must act in your best interests. That is the protection you want when you are making one of the biggest purchases of your life.

For more on how Colorado agency works, including transaction brokers, read our guide to buyer's agents, seller's agents and transaction brokers in Colorado.

How the Agreement Protects the Agent, Too

Jason was open about the other side of it. Without an agreement, an agent can spend hours showing a buyer homes, and the buyer can then have someone else write the offer. With an agreement, the buyer cannot go to another agent to write the offer unless the agent they signed with agrees to it.

In plain terms, it means the agent who does the work is the one who gets paid for it. Jason sees that as fair, and it is a big part of why the rule exists.

Nervous About Signing With Someone New?

Jason said he gets it. Signing a contract with an agent you barely know can feel like a lot. His advice for buyers in that spot:

• Start with a buyer consultation. Sit down with the agent, ask how buying works in Colorado and have them walk you through the agreement and when it needs to be signed.
• Limit the first agreement to specific homes. If you are touring soon, ask for the agreement to cover only the addresses you want to see. The agent is protected for the work they do that day, and you get a trial run.
• Decide after the tour. If it is not a fit, you can thank them and go a different direction. If you like how they work, you can sign a broader agreement going forward.
• Choose the length. Jason noted the term is flexible and set by you and the agent. He said his team typically used six months, but one to four months or a year are options too.

At the time, Jason said most of our clients already know and trust us, so signing was rarely an issue. The point of the advice is for buyers who are meeting an agent for the first time.

How to Vet Your Agent Before You Sign

Because you sign before you tour, choosing your agent matters more than ever. Jason's checklist from the video and its description:

• Interview more than one agent and ask friends for referrals
• Make sure they know the local market well
• Make sure they understand the contracts and addenda and can explain your contract deadlines
• Pick someone who answers your calls and texts

Jason also explained how our team is set up: agents who focus on buyers, agents who focus on listings, and transaction coordinators who take you from an accepted offer to the closing table. If you are buying for the first time, read first-time buyer mistakes to avoid in Fort Collins and our step-by-step guide to buying a home in Colorado.

What This Means If You Are Buying Now

The basics Jason laid out still hold up: understand what you are signing, know whether you are represented and pick your agent on purpose. The details of buyer agreements and how agents are paid have kept changing since 2024, so ask us to walk you through the current Colorado forms before your first showing.

Rates matter as much as the paperwork. Freddie Mac's 30-year fixed rate averaged 7.24% on October 29, 2026, compared with 6.17% a year earlier, so a good agent should also help you look at the full monthly payment. Our guide to what your Fort Collins mortgage payment really costs walks through it.

Sources and Further Reading

• Freddie Mac: Primary Mortgage Market Survey
• National Association of REALTORS: the NAR settlement agreement
• Colorado Division of Real Estate: brokerage relationship disclosures

Frequently Asked Questions

When did buyers have to start signing an agreement before touring homes?

In his July 2024 video, Jason explained that from August 17, 2024, a REALTOR had to sign a buyer agreement with a buyer before showing them a home. Confirm current practice with us before you tour.

What happens in Colorado if I do not sign a buyer agreement?

Jason explained that without one, there is no official relationship. You are considered a customer and are not represented by the agent.

Can I limit a buyer agreement to just a few homes?

Jason suggested asking for the first agreement to cover only the specific addresses you want to see, so you can try working with the agent before committing further.

How long does a buyer agreement last?

The length is agreed between you and your agent. Jason said his team typically used six months in 2024, but one to four months or a year are also options.

Were buyer agreements new after the NAR settlement?

No. Jason noted they had been used for a long time. The change was that they had to be signed before touring homes, rather than before writing an offer.

If you are getting ready to tour homes, we are happy to sit down first, walk you through the agreement and answer every question before you sign.