Implications of Not Having a Valid Buyer Broker Agreement in Arizona Post NAR Settlement

Who Must Comply: NAR Members vs. Non-NAR Licensees

These changes apply to NAR members (Realtors) nationwide, which includes the vast majority of Arizona residential agents and brokers who belong to local associations and use the MLS. All MLS participants “working with” buyers are required to secure a written agreement prior to touring a home. In Rim Country, CAAR adopted these rules for our FlexMLS system effective August 1, 2024, in anticipation of the settlement deadline. CAAR’s rule specifically applies to residential for-sale properties, meaning that any Realtor showing a residential listing must comply. CAAR is not actively collecting copies of each buyer agreement, but they reserve the right to audit or request proof that you had one if an issue arises. Failure to comply could subject an agent or their broker to MLS discipline or fines under the new penalty policies.

7.4 Written Buyer Agreements Required Unless it is inconsistent with state or federal law or regulation, all MLS Participants working with a buyer must enter into a written agreement with the buyer prior to touring a home.

The written agreement must include:

1. a specific and conspicuous disclosure of the amount or rate of compensation the Participant will receive or how this amount will be determined, to the extent that the Participant will receive compensation from any source.
2. the amount of compensation in a manner that is objectively ascertainable and not open-ended.
3. a term that prohibits the Participant from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.

Standard 16.15 On unlisted property, MLS Participants acting as buyer/tenant representatives or 876 brokers shall disclose that relationship to the seller/landlord at first contact for that buyer/tenant and shall provide written confirmation of such disclosure to the seller/landlord not later than execution

For licensed agents who are not NAR members, the NAR settlement rules technically do not bind them as NAR cannot enforce rules on non-members. Moreover, Arizona state law does not require a written agreement to simply “show” property or establish an agency relationship. The Arizona Department of Real Estate (ADRE) has explicitly stated that “signing an agreement to see or tour a home is not a state requirement”. However, non-NAR agents are still impacted by the new landscape. If a non-Realtor agent wishes to cooperate on an MLS listing or ensure they get paid, they would need to negotiate compensation directly (for example, via a separate commission agreement with the listing broker or by writing it into the purchase contract). In practice, virtually all agents, member or not, will find it necessary to use written buyer agreements to secure their commissions and meet industry expectations. In short, Realtors must follow the rule, and even non-Realtor agents would be wise to follow it as a best practice if they want to be compensated for their efforts.

Financial Risks of Showing Property Without an Agreement

Showing homes without a signed buyer-broker agreement has always come with risks, but post-settlement it can be financially catastrophic for an agent. Arizona law (statute of frauds) stipulates that a broker cannot sue to collect a commission for a real estate sale without a written employment agreement. In other words, absent a signed agreement, an agent who procures a buyer has no legal entitlement to any compensation from that buyer or anyone else for the sale. Prior to the NAR settlement, agents often relied on the MLS’s offer of compensation from the seller’s side, but those blanket offers are no longer visible in the MLS or guaranteed to be available for every listing. Now, if you show a property without an agreement, you may find that no commission has been pre-arranged for you at all. The buyer could end up purchasing through another agent or directly from the listing agent, and you’d have little recourse to claim a share of the commission.

Even if a listing does intend to pay buyer brokers, without a written agreement you have no contractual claim to that money. You’d be relying on good faith and “procuring cause” arguments, which are uncertain at best because the Arizona Statute of Frauds explicitly requires an agreement to sell real estate be in writing.  Previously, the “writing” was the offer of compensation published in the MLS.  This is no longer the case.

A.R.S. 44-101. Statute of frauds

No action shall be brought in any court in the following cases unless the promise or agreement upon which the action is brought, or some memorandum thereof, is in writing and signed by the party to be charged, or by some person by him thereunto lawfully authorized:

…

7. Upon an agreement authorizing or employing an agent or broker to purchase or sell real property, or mines, for compensation or a commission.

Moreover, if you violated the MLS rule by showing without an agreement, you’ve put yourself and your broker in a weak position.  In short, the financial risk is doing a lot of work for zero pay. As ADRE has noted, most buyer-broker agreements are designed “to define and ensure the compensation owed to the licensee”,  so foregoing that agreement means potentially ensuring you won’t be paid at all.

Enforcement: Who Ensures Compliance?

Enforcement of the written agreement requirement primarily falls to industry organizations and brokers rather than the state. Since this is a NAR-imposed MLS policy, local MLSs and Realtor associations are the front-line enforcers. For instance, CAAR updated its rules to reflect that written agreements are required, and it can issue penalties for non-compliance (such as fines or suspension of MLS access for repeat violations). CAAR will not collect buyer agreements by default, but may require an agent or broker to produce a copy upon request. This could happen if, say, a dispute arises or someone files a complaint suggesting an agent showed property without an agreement. Brokers, as MLS participants, are responsible to ensure their agents follow the rules, so brokerages are also enforcing this internally, and many have instituted office policies that no home tours occur without an agreement signed, to protect both the agent and brokerage.

It’s important to note that state regulators (like ADRE) are not mandating or policing this rule. ADRE has taken a consumer-education stance: advising buyers that they may be asked to sign an agreement, but emphasizing it’s not a legal requirement and cautioning them to read and understand what they sign. In other words, an Arizona licensee won’t lose their license solely for failing to have a buyer sign a broker agreement (since “a real estate employment agreement is not required for a licensee to represent a party” under ARS 32-2151.02(D). However, that agent would face the prospect of no commission (per ARS 44-101(7)) and potential sanctions from CAAR. Additionally, NAR’s Code of Ethics comes into play: Article 9 requires Realtors to put agreements in writing whenever possible, and the spirit of the new rules could be interpreted under the Code. Ultimately, the requirement is enforced through MLS rules and the brokerage community, backed by the incentive that if you don’t comply, you likely won’t get paid.

New Arizona Forms: Exclusive vs. One-Time Showing Agreements

To help agents comply with these changes, the Arizona Association of REALTORS® (AAR) rolled out new and revised standard forms in August 2024. Two primary buyer-broker contracts are now available for residential agents:

• AAR Buyer-Broker Exclusive Employment Agreement (BBEEA): This is a comprehensive, three-page exclusive employment contract between the buyer and brokerage. It commits the buyer to work exclusively with the broker/agent for a defined term and typically covers any property the buyer purchases in that period. The BBEEA has existed for decades, but it was significantly revised in 2024 to meet the settlement requirements (adding the negotiability disclosure, an objectively ascertainable commission amount, a cap on compensation, etc.). Under an exclusive agreement, if the buyer closes on any property during the term (or any property the agent introduced, depending on the terms), the broker is owed the agreed commission, even if the buyer found the property through someone else. This offers the highest level of protection for the agent’s compensation and ensures a loyal representation relationship. It also benefits the buyer by formalizing the agent’s duties and loyalty to them. The BBEEA includes clauses for cancellation, compensation after expiration (protecting the agent if the buyer buys shortly after the contract ends), and other key terms one would expect in an employment contract.
• AAR Buyer-Broker Agreement to Show Property: This is a new one-page, non-exclusive “touring” agreement created specifically in response to the NAR settlement. It is intentionally short and simple; designed for situations where a buyer is not ready to sign a months-long exclusive contract but an agent still needs an agreement before showing homes. It does not create an exclusive relationship. In fact, the form explicitly allows a buyer to sign similar agreements with multiple brokers. The key provision is that the buyer agrees to compensate only the broker who actually represents them in a purchase that closes escrow. In other words, if Agent A uses this form to show a property on Monday, and Agent B shows the same property on Tuesday and writes the successful offer, Agent B is the one entitled to the commission (Agent A would have no claim). This structure mirrors a “procuring cause” outcome but in contractual terms, it protects the buyer from owing two commissions, while still ensuring an agent has a written compensation agreement in place before performing services. The Agreement to Show Property is often used as a one-day or one-property agreement: it can be limited to a specific address or a short time frame if desired. Because it’s non-exclusive, it’s easier for a hesitant buyer to sign (they’re not locked into one agent for a long term), allowing Realtors to comply with the showing requirement without scaring off the client. Many Arizona agents are using this form for initial showings, and then if the buyer commits to working with them, they transition to the longer Exclusive Employment Agreement for ongoing home-search representation.

When to use each? It depends on the client and situation. Your brokerage may also have a policy in place regarding the forms.  Use the Exclusive Employment Agreement (BBEEA) when the buyer is ready to commit to you as their sole representative – for example, after a thorough buyer consultation where you’ve built trust and explained the value you bring. It’s ideal for serious buyers who will be actively looking and want full-service representation. On the other hand, use the Agreement to Show Property for new or casual prospects.  For instance, a lead who just wants to see one or two homes before deciding if they want to work with you, or an open-house visitor who asks you to show them other listings. It’s a way to get something in writing immediately, as required, without over-complicating the initial interaction. If that buyer then decides to continue with you, you can always have them sign a full BBEEA later. Notably, the AAR has also provided a Buyer/Tenant Employment Agreement Addendum, which can be used to modify or extend these agreements (for example, to adjust the compensation if needed, or convert an Agreement-to-Show into a longer-term arrangement). In all cases, both forms contain the crucial language mandated by NAR (clear negotiability disclosure, specific compensation terms, etc.), so Arizona agents who use these AAR forms can be confident they are in compliance with the new rules.

Arizona Law on Buyer Broker Agreements (vs. Other States)

As noted above, Arizona has long required that any agreement for a broker to earn compensation in a real estate sale be in writing. Arizona’s statute of frauds (ARS § 44-101(7)) includes “an agreement authorizing or employing an agent or broker to purchase or sell real property… for compensation” as a contract that must be written to be enforceable. Furthermore, Arizona real estate law (ARS § 32-2151.02) defines a “real estate employment agreement” as a written agreement by which a broker is entitled to compensation, and it sets forth certain requirements: the agreement must have a definite duration (expiration date), must be signed by both parties, and include all material terms including the compensation. (These requirements apply to any employment contract, listing agreements with sellers, as well as buyer-broker agreements.) Arizona law also explicitly states that while you don’t need a written agreement to act as someone’s agent, you do need one to demand compensation. In practice, this meant that if an Arizona buyer’s agent didn’t have a signed contract, they could only hope the seller’s MLS-offered commission would cover them as they had no direct claim to a commission from the buyer or anyone else without a contract.

Arizona was actually not unique in this regard as many states have similar laws. In fact, before the NAR settlement, 18 states already required written buyer agency agreements in some form (either by law or regulation) for agents to get paid. States like Georgia, Minnesota, Virginia, Washington, and others long had rules on the books mandating that an agent working with a buyer have a written agency or brokerage agreement, often to enforce or clarify the agency relationship. What’s new post-settlement is that NAR’s policy makes this a de facto nationwide standard for Realtors even in states that didn’t previously require it. So Arizona’s legal stance hasn’t changed, it was always wise (and necessary for court) to have a written agreement, but now the industry practice across all states, including Arizona, is formally catching up to that idea. Arizona agents should also be mindful of our specific laws when drafting these agreements. For example, ARS § 32-2151.02(C) prohibits an agent from inducing a client to breach an exclusive agreement; if a buyer is already under an exclusive with another broker you must not sign them to a new one unless they acknowledge it could expose them to multiple commissions. This is why the AAR BBEEA includes a question asking the buyer if they’ve signed any other buyer-broker agreements, it’s both ethical and legally required to address that upfront. In summary, Arizona law aligns with the new NAR requirements in spirit (written contracts, definite term, etc.), and now those practices are uniformly encouraged across the country. Arizona doesn’t impose any unique extra requirement beyond what we’ve discussed, but as always, agents should use the AAR-approved forms which are designed to comply with both state law and NAR policy.

In comparison to other states: some states’ laws may differ on details like duration limits or cancellation rights. For instance, a few states mandate that a buyer agency agreement can be terminated at will by the buyer (to protect consumers), or require a conspicuous notice about how the buyer can end the agreement. Arizona’s statutes do not provide an automatic “out” like that, it’s up to the contract terms negotiated. Arizona brokers often include a clause about cancellation or mutual termination in their agreements as a matter of practice, but it’s not a statutory requirement. So Arizona agents should make sure their clients understand any cancellation provisions in the AAR forms (for example, what happens if the buyer wants to cancel early, or the concept of a protection period after expiration). Always keep abreast of any new state legislation as well, the real estate industry is under a microscope, and some states may adjust their laws post-settlement (e.g., to impose consumer protections regarding these agreements). As of this writing, Arizona continues to rely on the existing statute framework and the new NAR-driven practices, with oversight by ADRE primarily in an advisory capacity.

Best Practices for Securing & Documenting Buyer Broker Agreements

In this new environment, educating and communicating with your buyer clients is absolutely key. Here are some best practices Arizona buyer’s agents should follow to obtain signed broker agreements smoothly and ethically:

• Set the Expectation Early: Don’t spring the agreement on buyers last-minute at a showing appointment. Instead, introduce the concept early in your relationship. For example, when a new lead contacts you or at the initial buyer consultation, explain that industry rules now require a written agreement for you to show homes, and that it’s intended to protect all parties by clarifying representation and fees. Emphasize that this is now standard procedure everywhere (“all Realtors must do this”) so the buyer doesn’t feel singled out.
• Explain the Agreement in Plain Language: Go through the key points of the agreement with the client. Highlight that commissions are negotiable and not set by law or any association (this is even written in bold on the AAR forms). Explain what compensation you are asking for (e.g. “I typically earn X%, and often the seller’s listing offers to pay that, but if not, we agree on how the difference would be handled”). Make sure the buyer understands their obligations and your obligations under the contract. For instance, point out if it’s exclusive or not, the term (how long it lasts), and how either party can terminate if needed. A well-informed client is more likely to sign and less likely to have issues later. Remember, ADRE advises consumers to read and understand these contracts fully, be the professional who helps them do that.
• Give the Buyer Time and Space to Review: AAR suggests it’s best practice to provide a blank copy of the agreement to the buyer in advance, before you’re sitting in the car about to show a house. For example, email them the form or a sample the day before the tour, or if meeting in person, give them a few minutes to read it over without pressure. Do not rush or coerce the signature. Let them know that they can ask questions or even seek legal advice if they desire. This not only builds trust but also helps avoid any claim that the buyer didn’t know what they were signing.
• Address Existing Agreements or Conflicts: Always ask the buyer if they have already signed any other buyer-broker agreement with another agent. This question is on the AAR Exclusive form for a reason. If they have, you need to proceed very carefully (you may need to delay showing property until that is resolved or get a written acknowledgment as per ARS 32-2151.02(C) that they know signing another could mean owing two commissions). It’s better to clarify this upfront than to step into a procuring cause quagmire later. If the buyer did work with someone else but claims no agreement, you might still probe a bit (many consumers don’t realize they may have signed something in passing). Doing this due diligence protects you from inadvertently poaching another agent’s client or setting the buyer up for a double-commission liability.
• Negotiate Terms That Work for Both Sides: Be willing to tailor the agreement to the client’s needs. For instance, if a buyer is skittish about exclusivity, you might use the Agreement to Show Property for one weekend of showings as a trial. Or shorten the term of an exclusive agreement, maybe a 30-day exclusive instead of six months, to give the client comfort that they’re not locked in forever. The AAR forms allow you to fill in whatever term you and the buyer agree on (there’s no minimum term required by rule). You can always renew or extend with an addendum if things are going well. Also discuss what happens if the agreed compensation isn’t met from the seller side. For example, if you agree to 3% and a particular listing offers only 2.5% to buyer brokers, will you ask the buyer to make up the 0.5% difference, or will you accept what the seller offers? Arizona’s forms let you specify this (some agents write in “Broker agrees to accept any compensation of at least X% from listing, and Buyer is not obligated to pay more than that”), or you can use the Buyer Broker Compensation Agreement with the seller’s broker for that one deal. The key is to hammer out these details in advance with your client, so you don’t have a dispute later. Remember, transparency up front is one of the goals of the settlement.
• Keep Signed Copies and Document Everything: Once the agreement is signed, give a copy to your client and retain a copy for your records (in your transaction management system or files) as required by brokerage policy. It’s wise to also document any modifications or important discussions. For example, if later you and the buyer agree to change the compensation amount (perhaps a builder is offering a bonus commission and the buyer agrees you can accept it, requiring an adjustment to your agreement), put that in writing – AAR’s Buyer/Tenant Employment Agreement Addendum can be used in such cases. A recent FAQ scenario noted that if a builder is paying a bonus above what the buyer initially agreed, the agent must amend the agreement to increase the compensation cap, otherwise the agent cannot accept the excess. Always use written addenda rather than verbal promises to modify terms.
• Educate the Buyer on the Process: Many buyers are still unfamiliar with this “new” requirement and might be wary (“I never had to sign this before!”). Have a concise explanation ready. NAR created consumer-facing materials explaining why written agreements are being used, emphasizing that it “benefits consumers by clearly outlining services and fees”. You might share that sentiment. Also, explain that if a seller is covering the commission, the agreement is simply making that transparent; and if the seller isn’t, that’s something you two will negotiate together (either asking the seller to pay via the offer or adjusting the purchase price). By demystifying the agreement, you make the buyer more comfortable signing it.
• Don’t Show Property Without the Agreement: Finally, the simplest best practice: hold firm to the rule. It can be tempting, especially with repeat clients or friends, to say “oh, we’ll worry about the paperwork later, let’s just go see this new listing real quick.” But bypassing the agreement even once is playing with fire; not only are you violating MLS policy, but you’re putting yourself at risk of not getting paid for that transaction. Cultivate the habit that the buyer agreement is as fundamental as a car seatbelt, it goes on before the ride. Many brokerages have made it policy that agents must upload a buyer’s signed agreement to the file before opening lockboxes or showing homes. Consider adopting such personal rules if your brokerage doesn’t enforce it. It protects you, your brokerage, and even the client (by clarifying representation). If a prospective client outright refuses to sign any form of agreement, you should carefully consider whether to work with them at all.  It’s better to walk away from an uncooperative prospect than to invest days of labor with no contract and find yourself cut out of the deal later.

By following these best practices, Arizona buyer’s agents can smoothly integrate the buyer-broker agreement into their workflow and turn what might initially seem like an obstacle into an opportunity to professionalize and solidify your client relationships.

What If a Buyer Buys Behind Your Back? Legal Recourse Without an Agreement

Despite our best efforts, the worst-case scenario does happen: you show a buyer some homes (without a valid agreement in place), and then that buyer goes and purchases a property without you. Perhaps they wrote an offer through another agent, or even approached the seller’s agent directly, and you only find out after the fact that they bought. What recourse do you have in Arizona if there was no signed buyer-broker agreement? Unfortunately, your options are very limited.

• You are unlikely to successfully sue the buyer for your commission – there’s no breach of contract, because there was no contract. As noted, Arizona’s statute of frauds will bar any lawsuit to collect a commission absent a written agreement. Even if you feel you were the “procuring cause” of the sale (you found the property, introduced the buyer, did a lot of work), that concept by itself doesn’t give you standing in court against the buyer or the seller. The buyer made no promise to pay you, and the law requires such promises to be in writing. Some agents inquire about claiming “quantum meruit” (getting paid for the reasonable value of services) or “unjust enrichment.” In Arizona, those claims cannot overcome the clear statutory requirement of a written commission agreement.  Courts have consistently held that if a broker wants a commission, they must get it in writing as a contract pursuant to ARS §44-101(7). So, suing the buyer is typically a dead end.
• You likely cannot claim a commission from the seller or listing broker either. The MLS offer of compensation is now banned, and without an alternative written offer of compensation from the broker you have no claim. Moreover, if the buyer went through another agent or directly to the listing broker, the listing side will argue that that was the procuring cause of sale, not you. Unless you actually procured the buyer’s making of an offer and the listing broker had extended an offer of coop to you, you’re facing an uphill battle. Without a contract with the buyer, you’d again have to rely on a possible tort claim like interference against the second agent or unjust enrichment against the seller – approaches that are very rarely successful. Unless the second agent did something clearly unethical (like instructing the buyer to ditch you without cause), brokers would likely avoid messy litigation here.
• Possible Ethics Complaint: If the buyer used another Realtor to write the offer, you might examine whether that Realtor followed the Code of Ethics. Realtors are supposed to inquire whether a prospect is already under an exclusive agreement with another Realtor (Article 16). If you did not have an exclusive contract, then Article 16 wasn’t violated – clients are free to switch if not contractually bound. It’s painful, but the second agent isn’t prohibited from working with them. If you did have an exclusive and the other agent knew and still took the client, that’s an ethical violation you could pursue. But here we’re assuming you had no valid agreement, so the Code won’t help you reclaim a commission. At best, if the second agent was in the same brokerage as you, you’d talk to your broker about an internal resolution.
• Tortious Interference Claims: In scenarios where a listing agent or another agent intentionally cut you out, some brokers consider a tortious interference claim (i.e. another party wrongfully interfered with your business relationship). These are tough to prove in real estate without a contract. And again, if you didn’t have an exclusive contract with the buyer, there’s arguably no “business relationship” that was legally protectable.  The courts view it as fair competition unless a contract was in place. If a listing agent promised to pay you a referral or something and then circumvented you, there might be a sliver of a claim, but those situations are rare and also fall under the requirement of writing in many cases.

The bottom line: If you find yourself empty-handed because a buyer you helped went and bought without you, and you did not have a signed agreement, the realistic recourse is very limited. It’s an extremely hard lesson to learn. The incident should underscore why the new NAR rule exists, to prevent this exact scenario by making sure expectations and obligations are in writing from the start. The best you might do is have a frank conversation with the parties involved (buyer, the other agent, the brokerages) to see if any amicable resolution or compensation can be worked out informally. Perhaps the other agent might agree to pay a referral fee if it was a misunderstanding; or the buyer might feel guilty and compensate you for your time (though they have no legal duty to). These outcomes are uncommon, unfortunately. As a professional, your energy is usually better spent learning from it: tighten up your processes so you never show a property without your agreement in place, and educate other clients so it doesn’t happen again. If needed, you can also file a complaint with the association if you truly believe unethical behavior occurred (e.g., the other agent lied to steal the client). But absent that, prevention is the cure.

One more angle: the new AAR Agreement to Show Property actually anticipates this scenario to an extent by being non-exclusive, it implicitly says if the buyer goes with someone else, the first broker isn’t owed anything. While that may feel harsh, it at least sets a mutual understanding. If you had used an Agreement to Show and the buyer then went with another agent, you knew you wouldn’t get paid for that deal, and you probably wouldn’t have continued investing time without upgrading to an exclusive. Without any agreement, though, you might have mistakenly thought you had an informal arrangement. So again, having something in writing, even non-exclusive, can clarify expectations and perhaps discourage a buyer from switching on a whim (since you’ve had the explicit conversation about loyalty and compensation).

Are Agreements Needed for Showing Land in Arizona?

What about vacant land or lots? The NAR settlement and resulting MLS policy specifically reference “touring a home” and apply to residential for-sale property. In many places, the focus has been on traditional home sales (since the underlying lawsuits were about residential brokerage commissions). In the CAAR MLS the written agreement requirement “only applies to Residential For-Sale” listings at this time. By that wording, showing a piece of land or a commercial property is not mandated under the MLS rule. However, **Arizona brokers and AAR have generally taken the stance that a buyer’s broker agreement is a good idea for any type of property, and the new standard forms accommodate all property types. The AAR Buyer-Broker agreements allow you to check a box for “Residential, Land, Commercial, Other” under the description of the property search. This means you can use the same form whether you’re helping a client buy a house, a vacant lot, a ranch, or even a business (if real estate is involved).

While land transactions have their nuances (e.g. often lower prices or different commission structures), the fundamental issues of representation and compensation are similar. If you’re working with a buyer to find land, you should still establish your relationship in writing. There is no downside to doing so: it ensures you get paid per your agreement and clarifies whether you’re representing the buyer exclusively or not. Arizona law (ARS §44-101(7)) also covers agreements to purchase or sell “real property or mines” (which would include land), so for enforceability of any commission related to a land purchase, you’d need a written agreement just as you would for a home purchase.

In practice, many land listings are also on the MLS and, even though CAAR doesn’t require the agreement for land, many brokers will still require their agents to have one. It’s simply prudent. The only scenarios where buyer agreements might routinely not be used could be in certain commercial transactions (which often operate outside of MLS and with their own norms, sometimes using non-binding commission agreements or letters of intent). But even in commercial deals, savvy brokers get their fee agreements in writing. For residential land (e.g., a buyer looking for a lot to build a custom home), it is highly recommended to use a buyer-broker agreement. NAR’s policy may eventually extend to all property types as the industry evolves, but regardless, Arizona Realtors should cover themselves. The AAR Agreement to Show Property is a great tool if a land buyer is hesitant.  For example, maybe they’re talking to multiple agents about different parcels; you can still have them sign a one-property showing agreement for any parcel you actually show them. If they later purchase that parcel through someone else, at least you had an agreement and could potentially claim procuring cause or negotiate a referral, depending on the terms. Without it, you’d face the same difficulties discussed above.

To summarize: Buyer-broker agreements are recommended whenever you are showing or assisting a buyer with any type of real estate in Arizona, including land. The only exception might be when acting strictly as a “finder” or in a one-off scenario where you have a different compensation arrangement documented (for instance, a written fee agreement directly with a seller or a referral agreement). But if you are working with the buyer, default to using a written agreement. It protects your commission and solidifies your professional relationship. And it signals to the buyer that regardless of the property type – be it a condo, a single-family home, or 5 acres of vacant land – your time and expertise have value and are provided under a mutual contract, not as a free service.

Conclusion

The real estate industry is undergoing significant changes in how buyer agents and their clients structure their relationships. In Arizona, as in the rest of the country, the days of casual, handshake buyer representation are gone. Every buyer’s agent should treat the buyer-broker agreement as a foundational step with each new client. The recent NAR settlement has made this a necessity for Realtors, but more importantly, it’s a best practice that offers clarity and protection for all involved. Buyers gain a clear understanding of who represents them and how that person is paid, and agents gain a contractual assurance that their hard work will be compensated (and a means to enforce it if necessary).

For NAR members in Arizona, complying with the new rules isn’t just about avoiding penalties, it’s about adapting to a more transparent and professional standard of practice. The Central Arizona Association of REALTORS® (CAAR) and Arizona REALTORS® have provided the tools (new forms, FAQs, training) to help you succeed in this new landscape. Use them to your advantage. Always get it in writing before you show , your livelihood may depend on it. And remember, the focus on written agreements is also an opportunity: it opens the door for you to have deeper conversations with your buyers about agency, loyalty, and the value you bring. Those who embrace these changes can turn them into a positive, setting themselves apart as knowledgeable, trustworthy professionals who operate with full transparency.

Sources:

• Arizona Association of REALTORS® – Buyer-Broker Agreement to Show Property FAQaaronline.comaaronline.com
• Arizona Association of REALTORS® – Part 2(a) of 5: Buyer Broker Exclusive Employment Agreement (Aug 2024 Forms Update)aaronline.comaaronline.com
• Arizona Association of REALTORS® – Top Ten FAQs for New Practice Changes and Formsaaronline.comaaronline.com
• Arizona Department of Real Estate – Consumer Advisory on Buyer-Broker Agreementsazre.govazre.gov
• National Association of REALTORS® – Written Buyer Agreements 101 (NAR “Get the Facts” Resource)nar.realtoraaronline.com
• National Association of REALTORS® – Settlement FAQ (Practice changes effective Aug 2024) realestateindepth.com
• Arizona Revised Statutes §32-2151.02 – requirements for real estate employment agreements azleg.govazleg.gov
• Arizona Revised Statutes §44-101(7) – statute of frauds requiring written agreement for broker commissions robertdmitchell.com