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Buying a Home Can Be an Overwhelming Process
If you’ve ever bought or sold real estate in California, you know the process comes with plenty of paperwork—and a whole lot of acronyms. One of the latest to know is the BRBC, short for Buyer Representation and Broker Compensation Agreement. Whether you’re navigating your first home purchase or you're a seasoned investor, understanding this document is key.
As of August 17, 2024, California REALTORS® are now required to use the BRBC when submitting offers. This agreement makes the relationship between you (the buyer) and your agent official. It lays out how your agent will represent you, what services they’ll provide, and how they’ll be compensated.
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This update comes on the heels of the landmark Sitzer-Burnett settlement, which changed how agent commissions are handled across the country. Since buyer agent fees are no longer automatically built into every transaction, the BRBC brings clarity and transparency to the table for both buyers and agents.
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The good news? The BRBC is flexible and can be tailored to fit your needs:
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Exclusive or Non-Exclusive: Choose whether to work with one agent or multiple.
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Single Property or Broad Search: Use it for one home, or cover a whole county—or more.
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For first-time buyers, it creates clear expectations and peace of mind. For experienced investors, it builds trust and efficiency with a key player in your real estate team.
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Curious how the BRBC affects your next move? We’d love to walk you through it—our team is here to make every step clear, confident, and in your best interest.
Exclusive vs. Non-Exclusive Buyer
When working with a buyer’s agent in California, representation is governed by the Buyer Representation and Broker Compensation Agreement (BRBC). This agreement can be exclusive or non-exclusive.
Exclusive Representation: Means the buyer agrees to work with one broker for the term of the agreement. If the buyer purchases a property that meets the agreement’s criteria during that time, the broker may be entitled to compensation—even if the broker was not directly involved in that specific transaction. Because of this commitment, cancellation by one party does not take effect until 30 days after written notice is received.
Non-Exclusive Representation: Offers more flexibility. The broker is entitled to compensation only if they were meaningfully involved in the transaction. Buyers may work independently or with other agents, and either party can cancel the agreement immediately upon notice.
Broker Involvement (Non-Exclusive)
In a non-exclusive agreement, compensation depends on documented broker involvement in the transaction. Broker involvement may include actions such as showing a property in person or virtually, preparing or submitting a written offer, reviewing disclosures, performing a market analysis, or otherwise advising the buyer on a specific property.
It’s important to note that simply sending listings or property links does not qualify as broker involvement unless the broker takes additional, property-specific steps to assist the buyer or communicates with the seller or seller’s agent on the buyer’s behalf.
How to Choose Exclusive Representation
Because the BRBC defaults to non-exclusive, choosing exclusive representation requires clear, written acknowledgment by the buyer. To establish an exclusive relationship, Section 2A(2) of the agreement must be checked, and the buyer must initial the Exclusive Representation box on the final page.
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Both steps are required. Without them, the agreement remains non-exclusive, even if the buyer and broker verbally agree to work exclusively together.
Adapted from guidance by the California Association of Realtors® (C.A.R.), Buyer Representation and Broker Compensation Agreement (BRBC), updated July 18, 2024.
© California Association of Realtors®.
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