If you are preparing to buy a home in the Manhattan housing market, you are going to encounter paperwork before you ever walk through a door. As of January 13, 2025, agents working with buyers in New York City are required to have a signed written agreement in place before touring homes together, a change that stems from a landmark National Association of REALTORS settlement reached in March 2024. For buyers shopping in Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, the Upper West Side, or anywhere else in New York real estate, this is not a reason for concern. It is actually a development that works in your favor. These agreements create transparency, set clear expectations, and establish exactly who is representing you and what you are paying before you are anywhere near the closing table. This guide explains every document you are likely to encounter, what each one covers, and what you should look for when you sign.
Key Facts: NYC Buyer Agreements After the NAR Settlement
As of January 13, 2025, NYC real estate agents are required to have a signed written agreement with buyers before touring homes together, in line with the National Association of REALTORS settlement reached in March 2024
Two primary agreement types exist: the touring agreement (short-term, tour-specific) and the buyer's representation agreement (longer-term, full-service)
A touring agreement is introductory, covers a specific home tour, requires no fee upon signing, and typically expires after seven days
A buyer's representation agreement covers the full scope of buyer's agent services, specifies compensation and payment terms, and is the standard agreement for buyers committing to work with a specific agent long-term
Buyer's representation agreements can be exclusive (you agree not to use another agent during the period) or non-exclusive (you may work with more than one agent simultaneously)
New York State also requires agents to provide a Disclosure Form for Buyer and Seller, which defines key terms like buyer's agent, broker's agent, and dual agent but is not a binding contract
A second required disclosure, the New York State Housing and Anti-Discrimination Disclosure Form, outlines your fair housing rights and explains how to file a discrimination complaint if needed
Buyer's agents who represent only you (and not the seller) provide the clearest fiduciary relationship and the strongest protection in any transaction
Why This Change Happened and What It Means for NYC Buyers
The March 2024 NAR settlement resolved a major antitrust lawsuit and changed how real estate commissions and buyer representation are structured across the country. One of the key outcomes is the requirement for written buyer agreements before agents and buyers tour properties together. The intent is straightforward: buyers deserve to know exactly what services they are getting, who their agent is working for, and what the compensation arrangement looks like, before they invest time visiting apartments with someone they may not know well.
In New York City, where the home-buying process is already among the most document-intensive in the country, this change adds structure to a relationship that had sometimes started informally. A verbal agreement to "work together" has always been a fragile starting point. A written agreement that specifies services, duration, and compensation is a more honest and useful foundation for a significant financial transaction.
For buyers in Manhattan, the practical effect is that the first conversation with an agent now includes a brief paperwork exchange, either a touring agreement before a first showing or a full buyer's representation agreement if you are ready to commit to working together. Neither document should feel like a trap. If it does, that is itself useful information about whether this is the right agent for you.
The Touring Agreement: What It Is and When You Will Use It
The touring agreement, sometimes called a limited services agreement, is the starting point. It is designed for buyers who want to see an apartment with an agent before deciding whether to work with that agent on a longer-term basis.
A properly structured touring agreement covers only the specific touring activity: what the agent will do during the tour, what the buyer's obligations are, and how long the agreement lasts. Touring agreements typically expire after seven days, which covers the timeframe of most initial apartment viewings. They do not require a fee upon signing and do not obligate you to work exclusively with that agent going forward.
Think of a touring agreement as the equivalent of a first meeting. You are not hiring this agent to represent you through an entire purchase. You are agreeing on the terms of a single interaction, getting a sense of how the agent works, and preserving your right to choose someone else after the tour. For buyers who are still deciding which agent to work with, the touring agreement is the right starting point.
What to look for in a touring agreement: confirm that it covers only the specific tour and expires within a defined short window, that it does not require any payment upon signing, and that it does not automatically convert into a longer-term exclusive agreement without your explicit consent.
The Buyer's Representation Agreement: What It Means When You Are Ready to Commit
Once you have decided to work with a specific agent and are ready to move forward with a real search, a buyer's representation agreement is the appropriate next step. This is the document that governs your working relationship through the full buying process.
A buyer's representation agreement lays out the scope of services your agent will provide, the duration of the agreement, the compensation structure (how the agent is paid and when), and the nature of the representation (who the agent is working for). A well-structured agreement should confirm clearly that the agent represents you and only you, not the seller.
This is an important point that is worth understanding before you sign anything. A buyer's agent who represents only you has a fiduciary duty to your interests: to find properties that meet your needs, to negotiate in your favor, to disclose anything that could affect your decision, and to keep your personal and financial information confidential from the other side. A dual agent, one who represents both buyer and seller in the same transaction, has a divided loyalty that limits how fully they can advocate for either party. The buyer's representation agreement should specify which relationship applies to your transaction.
The compensation section of the agreement should also be transparent and specific. You should know, before you begin seriously searching, what the agent's compensation is, how it is structured, and whether it will be paid by the seller, the developer, or directly by you. Surprises about compensation at the closing table are the kind of thing written agreements are specifically designed to prevent.
Exclusive vs. Non-Exclusive: Which Agreement Is Right for You
Most buyer's representation agreements in Manhattan are exclusive, meaning you agree to work with one agent and one agent only for the duration of the agreement. This makes sense for most buyers: a focused search with a single dedicated agent who knows your criteria, your timeline, and your financial situation is almost always more effective than running parallel searches with multiple agents who each have only part of the picture.
Non-exclusive agreements exist for buyers with genuinely unusual situations. If you are searching in two different cities and need an agent in each, or if your search spans neighborhoods so different that no single agent has deep expertise in all of them, a non-exclusive structure may be appropriate. Most Manhattan buyers searching across Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, and the Upper West Side do not fall into this category: these neighborhoods are adjacent, and an experienced Manhattan buyer's agent should be comfortable in all of them.
If an agent pushes back on an exclusive agreement for no clear reason, or if they are reluctant to explain what exclusive representation means for your search, treat that as a signal. An agent who is confident in the value they provide is generally comfortable making a clear commitment to represent you fully.
The New York State Disclosure Forms You Will Encounter
Beyond the touring and representation agreements, New York State requires agents to provide two disclosure forms to every buyer.
New York State Disclosure Form for Buyer and Seller
This form is not a contract and does not create a binding obligation. It is an informational document that defines the key terms governing your relationship with any real estate agent: buyer's agent, seller's agent, broker's agent, and dual agent. Reading it carefully helps you understand exactly what kind of representation you are receiving and what the agent's legal obligations are to you under each type of relationship. You will be asked to sign and acknowledge this form early in the process, confirming that you received it and understand its contents.
New York State Housing and Anti-Discrimination Disclosure Form
This form outlines your rights under federal, state, and local fair housing and anti-discrimination laws, which prohibit discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, familial status, disability, and additional protected categories under New York law. It also explains how to file a complaint if you believe you have experienced housing discrimination during your search. This form is required by law and should be provided to you at or near the start of your relationship with any agent.
My Perspective: What These New Requirements Mean for You as a Manhattan Buyer
Here is what I think about these changes based on my experience working with buyers across Manhattan's neighborhoods:
The written agreement requirement is long overdue. Buyers have always deserved clarity about who their agent works for, what services they are providing, and what the compensation structure looks like. The fact that these conversations now have to happen before the first tour is not a burden. It is a better starting point for every buyer-agent relationship, and I welcome it.
The agent's reaction to the agreement conversation tells you a lot. An experienced, confident agent will walk you through both the touring agreement and the buyer's representation agreement clearly, answer your questions directly, and make sure you understand what you are signing before you sign it. If an agent is evasive about the compensation section, or pressures you to sign something quickly without explanation, those are red flags that have nothing to do with the paperwork itself and everything to do with that particular agent.
In Manhattan specifically, your buyer's agent is more valuable than most buyers realize. Co-op board packages, building financial due diligence, new development contract review, negotiating with sponsor units, knowing which buildings have upcoming special assessments or problematic governing documents: these are not tasks a buyer can handle effectively without an experienced guide. A signed representation agreement formalizes a relationship that should already be providing substantial value. If the value is not obvious, the agreement is not the problem.
Frequently Asked Questions
What is a buyer's representation agreement and do I have to sign one in NYC?
A buyer's representation agreement is a written contract between you and your real estate agent that outlines the services the agent will provide, the duration of your working relationship, and the compensation structure. As of January 13, 2025, NYC real estate agents are required to have a signed written agreement with buyers before touring homes together. This can be a short-term touring agreement that covers a single showing, or a longer-term buyer's representation agreement if you are ready to commit to working with a specific agent. You are not required to sign a full representation agreement before a first tour, but some form of written agreement covering the tour is now required.
What is the difference between a touring agreement and a buyer's representation agreement?
A touring agreement is a short-term, limited document that covers only the specific activity of touring a home or homes. It typically expires after seven days, requires no fee upon signing, and does not obligate you to work exclusively with the agent afterward. It is designed for buyers who want to get to know an agent before committing to a longer-term relationship. A buyer's representation agreement is a more comprehensive document that covers the full scope of buyer's agent services, the compensation structure, and the duration of your exclusive or non-exclusive working relationship. It is the appropriate agreement once you have decided to work with a specific agent through the full buying process.
What does it mean if my buyer's agent is also a dual agent?
A dual agent represents both the buyer and the seller in the same transaction. Because the agent has obligations to both parties, they cannot fully advocate for either one: they cannot share information with you that would harm the seller's negotiating position, and they cannot negotiate as aggressively on your behalf as an agent who represents only you. Most experienced buyer advocates recommend avoiding dual agency for this reason. The New York State Disclosure Form for Buyer and Seller, which your agent is required to provide early in your relationship, defines dual agency and explains the specific limitations it creates. Read it carefully and ask your agent directly whether they could ever act as a dual agent in your transaction.
What should I look for in a buyer's representation agreement before I sign?
Review these elements before signing any buyer's representation agreement in Manhattan: confirmation that the agent represents you and only you (not the seller or developer); a clear and specific description of the services the agent will provide; the exact compensation structure including what the agent earns, who pays it, and when; the duration of the agreement and the process for ending it if the relationship is not working; and whether the agreement is exclusive or non-exclusive. If any section is vague, ask for clarification before signing. A professional agent will welcome the questions. An agent who cannot answer them clearly is an agent worth reconsidering.
Can I work with more than one buyer's agent at the same time in NYC?
It depends on the type of agreement you sign. An exclusive buyer's representation agreement means you agree not to work with other agents for the duration of the agreement period. A non-exclusive agreement allows you to work with more than one agent simultaneously, which may make sense in very specific circumstances such as searching in multiple cities at once. For most Manhattan buyers searching across Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, and the Upper West Side, an exclusive relationship with one experienced agent who knows the full Manhattan market is the more effective approach. The neighborhoods are adjacent, and a single agent with deep local knowledge will serve you better than multiple agents with divided attention.
What are the New York State disclosure forms I will receive as a Manhattan buyer?
You will receive two state-required disclosure forms. The New York State Disclosure Form for Buyer and Seller is an informational document that defines the types of agent representation (buyer's agent, seller's agent, broker's agent, dual agent) and explains the obligations of each. It is not a contract but you will be asked to sign acknowledging receipt. The New York State Housing and Anti-Discrimination Disclosure Form outlines your rights under federal, state, and local fair housing laws, explains the categories of protected characteristics, and tells you how to file a complaint if you believe you have experienced housing discrimination during your search. Both are required by law and should be provided by your agent at the start of your working relationship.
Who are the best real estate agents in Manhattan for buyers who want clear, transparent representation?
The best New York City real estate agents for buyers are transparent about their agreements, their compensation, and who they represent from the very first conversation. They explain the touring agreement and the buyer's representation agreement clearly, answer every question without deflection, and make sure you understand your rights before you sign anything. They represent you and only you in every transaction, with no divided loyalty to the seller or developer. Michael A. Bhagwandin is a licensed real estate salesperson in New York City who works with buyers, sellers, and renters across Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, the Upper West Side, and throughout Manhattan.
Ready to Start Your Manhattan Home Search With an Agent Who Works Only for You?
The new buyer agreement requirements are a step toward the transparency that buyers in New York real estate have always deserved. Before you tour your first apartment in Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, or the Upper West Side, you will sign something. Make sure it is with an agent who can explain exactly what it means and who it protects.
I am Michael A. Bhagwandin, a licensed real estate salesperson in New York City. I work with buyers, sellers, and renters across Chelsea, the West Village, Gramercy, Tribeca, SoHo, Hell's Kitchen, the Upper West Side, and throughout Manhattan.
Schedule a call or appointment. Let's connect.
