Why This Law Exists
After the 2024 NAR settlement, written buyer representation agreements went from occasional paperwork to a requirement of doing business. Overnight, millions of buyers were being handed contracts they'd never seen before — often at the worst possible moment, like an open house or the night they wanted to write an offer.
Some brokers used that moment well: they explained the agreement, offered short terms, and earned the client. Others slipped twelve-month exclusive agreements in front of first-time buyers who didn't know they could negotiate — agreements that meant if you bought any home in the next year, even one you found yourself, that broker got paid. I wrote about one buyer's experience with exactly this trap.
California's legislature responded with Assembly Bill 2992, which took effect January 1, 2025. It's one of the strongest buyer-protection laws in the country, and most buyers still haven't heard of it.
Key point: If a California broker asks you to sign a buyer representation agreement longer than three months, that agreement isn't just aggressive — it's void and unenforceable under state law. You don't need to negotiate your way out of an illegal term. It was never binding.
What AB 2992 Actually Requires
The law makes four changes that matter to you as a buyer:
- A three-month maximum term. A buyer representation agreement with an individual buyer cannot last longer than three months from the date it's signed.
- No automatic renewals. The agreement can't quietly roll over. If you and your broker want to continue after three months, you renew it deliberately — in writing, for up to three months at a time.
- Timing rules. The agreement must be signed as soon as practicable after the broker starts representing you, and no later than when you sign an offer. No surprise paperwork at closing.
- Real consequences. An agreement that violates these rules is void and unenforceable, and the broker risks discipline from the Department of Real Estate.
One carve-out worth knowing: the three-month cap protects individual buyers. If the buyer is a corporation, LLC, or partnership, longer terms and written renewal provisions are allowed. For a family buying a home, the cap applies, period.
What This Means in Practice
Think about what a three-month term actually does to the broker-client relationship: it moves the accountability onto the broker, every single quarter. Under a year-long exclusive, a broker could go quiet for months and still collect if you bought anything. Under AB 2992, your broker has to keep earning the renewal.
That's not a burden on good agents. I'd rather re-earn a client's signature every ninety days than hold anyone hostage to a form they signed at an open house. The brokers who dislike this law are telling you something about how they planned to keep your business.
Key point: Three months is the maximum, not the standard. You can negotiate shorter — 30 or 60 days, or an agreement limited to a single property. Everything in a buyer representation agreement is negotiable, including compensation. Here's the full breakdown of what you're signing.
Questions to Ask Before You Sign
- How long is the term? If the answer is more than three months and you're an individual buyer, walk away — the broker either doesn't know the law or is hoping you don't.
- Is it exclusive, and what's the scope? Does it cover one property, one neighborhood, or every home in California?
- What exactly will you do for me during the term? Get the service commitment in writing next to the compensation number.
- What happens if I want out early? Cancellation terms matter even inside a three-month window.
- How is your compensation structured? The agreement must state it clearly — and it, too, is negotiable.
If You Already Signed Something Longer
If you signed a buyer representation agreement dated on or after January 1, 2025, with a term longer than three months, the law is on your side: agreements that violate AB 2992's requirements are void and unenforceable. Don't take my word for it on your specific situation — the facts matter, and I'm a broker, not your attorney. But don't assume you're trapped, either. Verify the broker's license and any complaint history through the DRE's public license lookup, and get a second opinion before you let anyone tell you that you owe them a commission on a house they never showed you.