What Home Shoppers Need to Know About the New Buyer’s Contracts

When you buy a house on or after Aug. 17, you'll do things differently than before. Rules will change on that date, due to the settlement of an antitrust lawsuit.

Unlike before, you will decide how much your real estate agent will be paid for representing you when you buy a home. And your agent won't be paid by the seller's agent. Instead, you'll probably ask the home's seller to pay your agent — a request that will be subject to negotiation.

In short: It won't be the same purchasing process that your parents, siblings and friends went through when they bought their homes before the legal settlement with the National Association of Realtors.

Here's how the new process will work.

You'll sign an agreement before touring homes

You're browsing real estate websites and you've spotted a house that you want to visit so you can see inside — this is known as a home tour. Before a real estate agent escorts you inside, you will be required to sign an agreement that defines what the agent will do for you.

The agreement can outline a lightweight and short-term relationship with the agent or it can be a longer-term contract — whatever you negotiate.

On the lightweight end of the spectrum, you could sign a touring agreement that lasts a day or a week or gives you access to just one or two houses. Think of it as giving the agent an unpaid audition. "I give them options. Option one is we could just sign the agreement just for today," says Danielle Rownin, real estate agent with Keller Williams Realty in Connecticut. If the agent and client aren't a good fit, she adds, the agreement expires at midnight "and we're free to move on."

You'll sign an agreement even if the agent gives you a virtual tour, which is typically done by walking around the house with a cell phone camera. But you won't have to sign a touring agreement to visit an open house. Likewise, you won't have to sign an agreement for the seller's agent to give you a tour of the home, because that agent is working for the seller and not for you.