Ca Ab2992 Buyer Agreements

California AB 2992 and Buyer Representation Agreements Exam: California Real Estate Salesperson Last Updated: June 2026 --- ## Overview California Assembly Bill 2992 (effective January 1, 2025) codified the requirement for written buyer representation agreements in California real estate transactions. This law was enacted in response to the NAR settlement and aligns California's statutory requirements with the new industry practices. Understanding buyer representation agreements is critical for the current California exam. --- ## Why AB 2992 Was Enacted The National Association of Realtors (NAR) reached a $418 million settlement in March 2024 that required MLS participants to have a written buyer agreement before touring homes. California went further by codifying these requirements into state law. | Trigger | Date | |---|---| | NAR settlement announced | March 15, 2024 | | NAR practice changes effective | August 17, 2024 | | AB 2992 signed into law | September 2024 | | AB 2992 effective date | January 1, 2025 | --- ## When a Buyer Representation Agreement Must Be Signed Under AB 2992 and the NAR settlement requirements: | Situation | Agreement Required Before? | |---|---| | Touring a property in person | Yes — before the first tour | | Touring a property virtually | Yes — before the virtual tour | | Open houses (in some cases) | Agent-specific; check brokerage policy | | Making an offer | Yes — must have agreement in place | | Receiving agency disclosure | Yes — AVID must accompany agreement | > Exam Tip: The agreement must be signed BEFORE touring, not just before making an offer. This is a key change from prior California practice. An agent cannot show…