Buyer Agency Agreement: What Indiana Home Buyers Should Know

Buying a home in Columbus, Seymour, Bartholomew County, Jackson County, or another South Central Indiana community? This plain-English guide explains why you may

be asked to sign a Buyer Agency Agreement before touring homes and what the agreement means for you.

A Buyer Agency Agreement is one of the biggest surprises many Indiana home buyers encounter today.

Their Realtor asks them to sign a Buyer Agency Agreement.

That request may feel uncomfortable, especially if you have not yet decided whether to buy a home or whether this is the Realtor you want representing you. You may wonder whether you are committing yourself to a purchase, giving up your freedom to choose another agent, or agreeing to pay an unexpected fee.

Those are reasonable questions.

A Buyer Agency Agreement is not supposed to pressure or confuse you. Its purpose is to clearly establish the professional relationship between you and the real estate brokerage representing you. It explains the services you will receive, your responsibilities as a buyer, how long the agreement lasts, and how the brokerage may be compensated.

Most people do not buy homes every day. You should not be expected to understand every real estate term, contract provision, or industry change before you begin.

That is why I created this guide.

Before We Begin: Understanding a Buyer Agency Agreement

Throughout this guide, I’ll explain your Buyer Agency Agreement in plain language so you can understand what you’re signing and why it matters.

If you have never signed a Buyer Agency Agreement before, or you are unsure what some of the language means, you are not alone.

Buying a home involves contracts, financing, inspections, deadlines, title work, appraisals, and terminology that most people rarely encounter in everyday life.

Please do not feel embarrassed to ask questions.

Asking questions does not make you less knowledgeable, less prepared, or less important. It means you are taking one of life’s biggest financial decisions seriously.

My goal is not simply to explain a form. My goal is to help you understand the process so you can make informed decisions with confidence.

What Is a Buyer Agency Agreement in Indiana?

A Buyer Agency Agreement is a written contract that establishes the professional relationship between a buyer and the real estate brokerage representing that buyer.

It generally explains:

The services the real estate professional will provide
The buyer’s responsibilities
The length of the agreement
The geographic area or type of property covered
How the brokerage will be compensated
How the agreement may be changed or ended
Any other terms governing the professional relationship

Think of it as a roadmap for working together.

Instead of relying on assumptions or verbal promises, the agreement puts important expectations in writing from the beginning.

Signing a Buyer Agency Agreement does not mean you have found the perfect house. It does not mean you have made an offer, and it does not require you to buy a home.

It means you have selected a professional to represent and guide you during your home search under the terms stated in the agreement.

Why Is a Buyer Agency Agreement Required?

Written buyer agreements are not completely new. Some states and brokerages have used them for years.

However, two major changes made them much more visible to consumers in 2024.

Indiana’s Written Agreement Requirement

Effective July 1, 2024, Indiana law requires real estate brokers to use written representation agreements to formalize agency relationships with buyer and seller clients.

Indiana agreements must be in writing, either electronically or on paper, and include a definite expiration date. The Indiana Professional Licensing Agency has explained that the law itself does not establish one specific moment when the agreement must be signed.

National MLS Practice Changes

Beginning August 17, 2024, National Association of Realtors MLS policy requires participating real estate professionals who are working with a buyer to have a written agreement in place before touring a home with that buyer, whether the tour is in person or live and virtual.

That agreement must clearly address the services being provided and compensation. (National Association of REALTORS®)

In practical terms, an Indiana buyer working with a Realtor who participates in an MLS should expect to discuss and sign a written agreement before beginning private home tours.

Do I Have to Sign Before Looking at Homes?

In most private-showing situations, yes.

When you ask a Realtor to schedule and conduct a private tour, you should expect to have a written buyer agreement in place before entering the property together.

That does not mean the agreement should be pushed across the table five minutes before the showing with no explanation.

Ideally, you and the Realtor should have a real conversation first.

You should understand:

Who the Realtor represents
What services will be provided
How long the agreement lasts
What your responsibilities will be
How the brokerage will be compensated
What options you have if the relationship does not work as expected

A written agreement should begin with a conversation, not just a request for your signature.

Can I Visit an Open House Without Signing an Agreement?

Generally, yes.

If you attend an open house on your own and speak with the agent who is hosting it, you do not ordinarily need to sign a Buyer Agency Agreement simply to walk through the property or ask about the agent’s services.

However, remember that the agent hosting the open house may represent the seller.

If you later ask a Realtor to represent you, arrange another private showing, or begin helping you with your search, you should expect to discuss a written agreement before moving forward. (National Association of REALTORS®)

Does Signing Mean I Have to Buy a House?

No.

Signing a Buyer Agency Agreement does not force you to purchase a home.

If you decide that buying is no longer the right choice, or you do not find a home that meets your needs, you are not required to purchase one simply because you signed an agreement.

However, the agreement is still a contract.

If you purchase a property covered by the agreement during its term, or under a protection provision that may continue for a period afterward, you may have responsibilities under that contract. That is one reason it is important to understand the terms before signing.

A good Realtor wants you to buy the right home when the time is right, not simply any home as quickly as possible.

Can I Choose Which Realtor Represents Me?

Absolutely.

You do not have to work with the first real estate agent you meet.

Choosing a Realtor is an important decision. You may spend weeks or months working together while making significant financial decisions and navigating a process that can sometimes feel overwhelming.

You deserve to work with someone who:

Listens before making recommendations
Communicates in a way that works for you
Understands the area where you are buying
Welcomes your questions
Explains paperwork in language you can understand
Respects your budget, goals, and timing
Makes you feel heard rather than talked down to

Before signing an agreement, you may interview more than one Realtor. Ask about experience, availability, communication, services, compensation, and how that person approaches buyer representation.

You should not feel pressured to choose someone before you understand what the working relationship will look like.

What Does a Buyer’s Agent Actually Do?

Many people assume a Realtor’s job begins with unlocking the front door for a showing and ends with handing over the keys at closing.

Those are simply two of the most visible moments in a much larger process.

A buyer’s agent may help by:

Learning about your goals, needs, budget, and concerns
Helping you connect with a lender and understand the importance of preapproval
Creating and monitoring a property search
Researching homes and neighborhoods
Scheduling and coordinating showings
Reviewing available seller disclosures
Helping you evaluate market conditions
Preparing and explaining an offer
Discussing possible offer terms and strategies
Negotiating on your behalf
Tracking contract dates and deadlines
Coordinating inspections
Helping you understand your options after an inspection
Communicating with the listing agent, lender, title company, inspector, appraiser, and other professionals
Monitoring the transaction as it moves toward closing
Helping you prepare for the final walk-through and closing day
Answering questions throughout the process

The exact services provided should be discussed with your agent and described in your agreement.

Your Realtor’s role is not to make your decisions for you. It is to provide information, professional guidance, and support so you can make your own informed decisions with confidence.

Behind Your Buyer Agency Agreement: What Your Realtor Does

While you are working, caring for your family, having dinner, or simply going about your day, your Realtor may be:

✓ Reviewing newly listed properties that match your search

✓ Researching details before recommending a home

✓ Reading disclosures for information that deserves your attention

✓ Confirming showing appointments

✓ Communicating with listing agents

✓ Coordinating with your lender, inspector, and title company

✓ Monitoring contract deadlines

✓ Following up on inspection, repair, appraisal, or financing questions

✓ Negotiating terms on your behalf

✓ Solving unexpected problems before they become more stressful for you

Much of a Realtor’s work happens out of sight.

A smooth transaction is rarely automatic. It usually reflects careful coordination, communication, follow-up, and someone paying attention to the details.

Like any professional service, buyer representation has value. Real estate professionals invest their time, expertise, mileage, technology, licensing, insurance, and other business resources, often for weeks or months before a transaction reaches the closing table.

The goal is not for you to witness every phone call or email. The goal is for you to have confidence that someone is looking out for your interests.

What Does a Buyer Agency Agreement Include?

Forms and contract language vary, but most Buyer Agency Agreements address several important topics.

The Type of Representation

The agreement explains the relationship between you and the real estate brokerage.

In an agency relationship, the brokerage and its associated broker represent you under the duties established by the agreement and applicable Indiana law.

The Services You Will Receive

The agreement may describe the services your buyer’s agent will provide, such as searching for properties, arranging showings, preparing offers, negotiating, coordinating the transaction, and helping you understand the process.

The Length of the Agreement

The agreement will include a beginning and ending date.

Indiana law requires written representation agreements to have a definite expiration date.

The length should be discussed before you sign. It might cover a short period, a specific property, or a longer home search.

The Area and Property Type Covered

The agreement may apply to a particular county, city, geographic area, price range, or property type.

Read this section carefully so you know which purchases are covered.

Compensation

Your Buyer Agency Agreement should clearly explain how your Realtor may be compensated.

The agreement explains the compensation the buyer’s brokerage will receive or how that amount will be calculated.

This should be stated clearly and objectively, not left as an unknown amount to be determined later. Fees and commissions are negotiable and are not set by law. (National Association of REALTORS®)

The Buyer’s Responsibilities

The agreement may ask you to:

Work through the brokerage for properties covered by the agreement
Communicate honestly about your needs and finances
Notify your agent about homes you are interested in
Direct questions and showing requests through your agent
Provide documents or information needed for the transaction
Fulfill any compensation obligations stated in the agreement

How the Agreement Can Be Changed or Ended

The agreement should explain how modifications or termination may be handled.

Do not assume you can simply stop communicating or begin working with another agent while an agreement remains in effect. Ask about the process before signing.

Buyer Agency Agreement Compensation Explained

This is one of the most important conversations to have before your home search begins.

The Buyer Agency Agreement states how the buyer’s brokerage will be compensated for the services it provides.

Compensation must be clearly defined. It could be expressed as a specific percentage, flat fee, hourly amount, or another objective calculation. Broker fees and commissions are negotiable and are not set by law. Under current MLS rules, the brokerage cannot receive more compensation than the amount or rate agreed to in the written buyer agreement. (National Association of REALTORS®)

Will the Buyer Always Pay the Fee Out of Pocket?

Not necessarily.

A seller may agree to pay some or all of the buyer-broker compensation. That payment may be offered separately or requested and negotiated as part of the buyer’s offer.

Offers of buyer-broker compensation are no longer displayed through an MLS, but sellers may still agree to pay them outside the MLS. (National Association of REALTORS®)

Whenever possible, I work hard to negotiate for the seller to cover the buyer-broker compensation.

My goal is to pursue every reasonable opportunity to reduce my buyer’s out-of-pocket expenses while still making sure the terms of the offer make sense for that buyer and that particular property.

However, seller-paid compensation cannot be guaranteed.

If the seller does not agree to pay the full amount stated in the Buyer Agency Agreement, the buyer may be responsible for the difference, depending on the agreement and the negotiated terms of the transaction.

That is why this conversation needs to happen early.

Before my buyer makes an offer, I want to explain how compensation is expected to work for that property, what we can request or negotiate, and whether the buyer could have any financial responsibility.

One of my jobs is to explain your options before you make important decisions, not after.

There should not be a surprise at the closing table.

Can I Change Realtors After Signing a Buyer Agency Agreement?

Possibly, but you need to follow the agreement.

A Buyer Agency Agreement is a contract and should not be signed casually. It may contain specific provisions explaining when and how it can be changed or terminated.

If the relationship is not working as expected, begin with an honest conversation. Sometimes a concern can be resolved by clarifying communication or expectations.

If it cannot be resolved, ask what steps are required to change or end the agreement. The buyer and brokerage may be able to mutually agree to modify or terminate it, but the specific terms matter. (National Association of REALTORS®)

Do not begin working with another Realtor until you understand whether your current agreement is still in effect.

Questions to Ask Before Signing a Buyer Agency Agreement

A Buyer Agency Agreement should be a conversation, not paperwork you are hurried through.

Consider asking:

What services will you provide?
How long will the agreement last?
What cities, counties, or types of property does it cover?
Does the agreement apply to every home I consider?
How will your brokerage be compensated?
Could I owe money if the seller does not pay the full fee?
How will compensation be addressed when we prepare an offer?
What are my responsibilities?
How will we communicate?
Who will attend showings with me?
What happens if I decide not to buy?
How can the agreement be changed or ended?
Is there a protection period after the agreement expires?
What should I do if I find a home online or visit an open house?
What happens if I am interested in one of your brokerage’s own listings?
Can you explain this section in a different way?

That last question is important.

If the explanation does not make sense the first time, ask the Realtor to slow down, back up, or use an example.

It is not your job to pretend you understand. It is the professional’s job to explain.

Common Buyer Agency Agreement Myths

Myth: Signing means I have to buy a house.

Reality: The agreement establishes a professional relationship. It does not force you to purchase a home. However, if you do buy a property covered by the agreement, its terms may apply.

Myth: I have to work with the first Realtor I meet.

Reality: You may interview agents before choosing the person you want representing you.

Myth: A buyer’s agent only opens doors.

Reality: Showings are only one part of buyer representation. Research, contracts, negotiation, coordination, deadlines, inspections, financing, appraisal, title work, and closing preparation often happen behind the scenes.

Myth: The agreement is exactly the same everywhere.

Reality: Laws, forms, brokerage policies, and allowable relationships vary by state. Even within the same state, agreements may contain different negotiated terms.

Myth: My Realtor’s fee is set by law.

Reality: Broker fees and commissions are negotiable and are not set by law. (National Association of REALTORS®)

Myth: The seller is always required to pay my Realtor.

Reality: A seller may agree to pay buyer-broker compensation, but that payment is not automatic or guaranteed.

Myth: I will not know what I owe until closing.

Reality: Compensation should be clearly addressed in the written agreement and discussed again before you make an offer on a particular property.

Myth: Asking questions will make me look inexperienced.

Reality: Asking questions is one of the smartest things you can do. You deserve to understand every agreement you sign and every important decision you make.

Myth: The agreement only protects the Realtor.

Reality: A clearly explained agreement can protect both parties by identifying the services, responsibilities, duration, compensation, and expectations from the beginning.

Buyer Agency Agreement Frequently Asked Questions

Is a Buyer Agency Agreement required in Indiana?

Indiana law requires written representation agreements when a real estate broker establishes an agency relationship with a buyer. Realtors working under applicable MLS rules must also have a written buyer agreement in place before touring a home with a buyer.

Do I need an agreement for a virtual showing?

The MLS practice changes apply to both in-person tours and live virtual tours conducted with the real estate professional. (National Association of REALTORS®)

Can I attend an open house without signing?

Generally, yes, when you are attending on your own and are not asking the hosting agent to represent you.

Can I sign an agreement for only one house?

The scope and length of an agreement may be negotiable. Ask whether a property-specific or shorter-term agreement is available and appropriate.

How long does the agreement last?

The agreement must include an expiration date, but the actual length depends on the terms you and the brokerage agree upon.

Is the compensation negotiable?

Yes. Fees and commissions are negotiable and are not set by law. (National Association of REALTORS®)

What happens if the seller does not pay my Realtor?

Depending on your Buyer Agency Agreement, you may be responsible for some or all of the compensation not paid by the seller. Discuss this before signing and before submitting an offer.

Can compensation be included in my offer?

A buyer may request or negotiate for the seller to pay buyer-broker compensation. Whether the seller agrees will depend on the offer and transaction. (National Association of REALTORS®)

Does signing mean I cannot visit open houses?

No. Tell your Realtor about the open house and let the hosting agent know you are already represented.

What if I find a house myself online?

Send the listing to your Realtor. Finding the property is only one part of the process. Your agent can research it, arrange the showing, help evaluate it, and guide you through any offer.

What if I decide not to buy?

You are not required to purchase a home. Review the agreement for any obligations that may continue during its term or after it expires.

Can I work with several Realtors at once?

That depends on the agreement. An exclusive agreement generally means you have chosen one brokerage to represent you for the properties it covers. Working with multiple agents could create contractual and compensation issues.

What if I do not understand part of the agreement?

Ask for an explanation before signing.

A professional should be willing to slow down, explain unfamiliar terms, and use examples until the agreement makes sense to you.

What if I feel embarrassed asking questions?

Please do not.

Most people do not buy homes every day. Contracts, financing, inspections, title work, and compensation rules can be confusing, even for someone who has purchased a home before.

There are no foolish questions when you are making one of the largest financial decisions of your life.

You deserve to be treated with respect, regardless of your budget, experience, or how much you already know about real estate.

Final Thoughts About a Buyer Agency Agreement

My hope is that this Buyer Agency Agreement guide has helped you feel more confident…

The Buyer Agency Agreement is not meant to make buying a home more intimidating.

It is intended to clearly define the relationship between you and the professional representing you. When it is explained properly, it gives you an opportunity to understand the services you will receive, the responsibilities you are accepting, and how compensation will be handled.

Whether you are purchasing your first home or your fifth, you deserve to understand every document you sign.

I do not expect my clients to arrive knowing how the entire real estate process works. My responsibility is to listen, explain, watch for the moment something becomes confusing, and find a clearer way to say it.

My job is not to make decisions for you.

My job is to give you the information, professional guidance, and support you need to make informed decisions with confidence.

Buying a home should feel like a partnership, not a lecture and certainly not a test you are expected to pass before you begin.

Becci’s Tip

Never sign a real estate document you do not understand.

Read it carefully. Ask questions. Take notes. Ask for a real-life example. Ask the person explaining it to slow down or say it another way.

A good Realtor will not be offended by your questions. They should welcome them.

An informed buyer is a confident buyer, and every buyer deserves to feel informed, respected, and important throughout the process.

Continue Learning About the Home-Buying Process

For more plain-English guidance, continue with:

This article is provided for general educational purposes and is not intended to offer legal, tax, lending, or financial advice. Real estate laws, forms, brokerage policies, contract terms, and industry practices may vary and may change over time. Every transaction is different. Consult your real estate professional and the appropriate attorney, lender, tax professional, or other qualified adviser for guidance about your specific circumstances.

Last reviewed: July 2026

Buyer Agency Agreement in Indiana: What Every Home Buyer Should Know