Buyer Agreements in Colorado:

Why It’s a Good Thing for Buyers and Agents.

One of the top questions I now get is about the new requirement for homebuyers to sign a buyer agreement before touring homes in Colorado. For some, it feels like a big change because on the surface it may seem that your agent is trying to lock you into something early in the buying process, even just to view inside a home.

The truth is, this agreement isn’t something to worry about. It’s actually designed to protect buyers, give clarity, and make the home-buying process smoother for everyone involved. Before signing an agreement, you, the prospective buyer, and I together will decide the terms of the agreement.

It will include the timeframe we’ll work together, the scope of properties we’ll focus on (even if it’s just one property), and what my compensation will be if we find you the perfect property.

What Is a Buyer Agreement?

A buyer agreement is a written contract between a homebuyer and a real estate agent. It explains:

  • The services your agent will provide

  • How long the agreement lasts

  • How the agent gets paid

In Colorado, the most common version is the “Exclusive Right to Buy” agreement, approved by the Colorado Real Estate Commission. It’s a straightforward way to make sure everyone knows what to expect.

  • A buyer agreement in Colorado real estate makes the home-buying process more transparent by showing upfront how agents are paid.

  • Realtors who use the MLS (most real estate agents in Colorado do) are now required by the NAR and CAR to have a signed buyers agreement before showing homes.

  • While not state law, it’s now standard practice across Colorado real estate markets.

  • Colorado buyers benefit from these agreements with clear terms, no hidden fees, and flexible options like short-term or non-exclusive agreements.

  • It protects both buyers and agents by putting expectations in writing, building trust from the start.

Why THE NEW REQUIREMENT?

This shift came after the National Association of Realtors (NAR) settlement in 2024. For years, many buyers didn’t really know how commissions worked or who was paying for what. The settlement changed that by requiring more transparency.

Now, NAR requires Realtors who use the MLS (Multiple Listing Service) to get a signed buyer agreement before showing homes. The Colorado Association of Realtors (CAR) updated state forms to follow this rule. While the Colorado Department of Regulatory Agencies (DORA) says state law doesn’t require it just to view homes, most agents will need it to comply with NAR and CAR rules.

Here is a link to more information from NAR about the new requirement if you are interested: NAR Buyer Agreement

Why It’s Good for Buyers

A buyer agreement gives you control and clarity. Here’s how:

  • Transparency – You know exactly what your agent charges and how they’re paid.

  • No surprises – Everything is upfront, so you don’t get hit with unexpected costs.

  • Custom terms – You can negotiate length, scope, and even the fee. This puts you in the driver’s seat.

  • Commitment from your agent – When you sign, you’re showing your agent you’re serious, and in turn, they’re motivated to give you their full effort.

Why It’s Good for Agents

For agents, a buyer agreement provides a clear working relationship. They can focus on serving you without worrying about misunderstandings later. This means more attention, more dedication, and fewer conflicts about payment or expectations.

Options for Flexibility

Signing a buyer agreement doesn’t mean you’re locked in forever. In Colorado, you have choices:

  • Exclusive Right to Buy – Work with one agent for a set time.

  • Non-Exclusive Agreement – Allows you to work with more than one agent.

  • Short-Term Agreement – Great if you’re just getting started and want to test it out for a short time or a specific home tour.

What This Means for Colorado Buyers

Here’s what you need to know:

  • It’s not state law, but it is a rule for most Realtors who use MLS.

  • It’s designed to protect buyers and agents by making everything clear from the start.

  • It’s negotiable — you can set terms that fit your comfort level.

  • It builds trust and avoids confusion later in the process.

Why You Shouldn’t Be Concerned

The buyer agreement isn’t a trick or a trap. It’s simply a written outline of how you and your agent will work together. In reality, it benefits both sides:

  • Buyers know their rights and costs.

  • Agents can focus fully on finding you the right home.

  • The process becomes smoother, more transparent, and fairer overall.

Key Takeaways

  • A buyers agreement is about clarity, not pressure.

  • It’s now standard practice for most Realtors in Colorado.

  • Buyers have options to make it short-term or flexible.

  • It protects both buyers and agents by putting everything in writing.

For Colorado homebuyers, this agreement is a positive step toward more transparent and fair real estate practices. Instead of worrying about hidden fees or unclear promises, you’ll know exactly what’s on the table from day one. That makes the search for your new home simpler and more stress-free.