Do I have to sign a buyer representation agreement in Minnesota, and what should it say?
Yes. Minnesota requires a signed, written buyer’s broker agreement before an agent represents you, and since August 2024 Minnesota Realtors members have to have one in place before touring a home. Open houses are exempt. Every term is negotiable: the fee (percentage, flat, or hourly), the length, exclusivity, and how you can get out. Before you sign, read five things: the expiration date, how you pay, what happens if the seller pays less than the agreement says, how you terminate, and the protection period after it ends.
By Darin Bjerknes | November 2, 2026
A couple from Oakdale texts me on a Saturday morning. They want to see a $625,000 two-story in Woodbury at noon. Before we walk in, I hand them a buyer representation agreement. The husband looks at the term, the fee line, and the signature block, and asks the question I hear every week: “Do we really have to sign this before we see a house?”
It is a fair question, and the honest answer has two parts. Yes, you will sign something. No, you should not sign it without reading it. In the east metro right now, Woodbury homes are selling in a median of 31 days at 99.6% of list price, according to Redfin’s September 2026 numbers, so buyers feel pressure to sign fast. That pressure is exactly when people skip the clauses that cost money later.
This post walks through what Minnesota requires, the five clauses that matter, and three ways to structure what you pay your agent.
Why you are asked to sign before the first showing
Minnesota did not invent this rule in 2024. Minnesota Realtors says the state has required signed buyer representation agreements on residential transactions for about 30 years. What changed on August 17, 2024, after the National Association of Realtors settlement, is the timing: MLS participants must now have a written agreement with the buyer before touring a home.
Minnesota Statutes section 82.66, subdivision 2, sets the baseline for buyer’s broker agreements. As written in the version I reviewed (2017), the agreement must be in writing, must carry a definite expiration date, and cannot include a holdover clause, automatic extension, or similar provision. Override clauses, which protect the agent after expiration, are limited to six months for residential deals. I reviewed the 2017 text, so confirm current language with an attorney.
The settlement also split compensation in two. Your agreement with your agent now sets what you owe. Any offer from a seller to cover that cost lives in a separate cooperating compensation arrangement, not in the MLS, according to the Star Tribune’s reporting at the time. Minnesota Realtors’ statement is blunt: commissions “are now, and have always been, negotiable.”
The Minnesota Realtors 2026 forms update took effect August 1, 2026. It retitled the amendment form for listing and buyer representation contracts, added an addendum for deals with more than two buyers or sellers, and added a referral agreement. The summary lists no change to how buyer compensation is handled, so the mechanics above still apply.
The five clauses to read before you sign
1. Term and expiration date
Minnesota requires a definite expiration date, so find it. For a first agreement, I would rather see 60 to 90 days than a year. A Woodbury buyer who is ready to move will usually find a home inside that window. A longer term locks you in with one agent even if the fit is wrong. That is my opinion, not a rule, and you can ask for any term you like.
2. Exclusive or non-exclusive
An exclusive agreement means that if you buy any house during the term, your agent is owed compensation, even a house you found yourself. Ask whether the agreement covers new construction you walk into without the agent, and whether it applies to a rental if you rent first. The Close reported a Pennsylvania dispute where a flat fee was triggered by a rental. That was another state’s contract, but ask what triggers payment.
3. How you pay
The NAR consumer guide lists three options: a percentage of the price, a flat fee, or an hourly fee. It says these agreements are “fully negotiable.” Redfin’s national figures, reported by Kiplinger, put the average buyer-agent commission near 2.40% in the first quarter of 2025. On Woodbury’s September median of $484,769, that works out to roughly $11,600. Treat that as a reference point, not a quote.
4. What happens if the seller pays less
This is the clause buyers miss most. If your agreement says you owe 2.5% and the seller’s offer to cover compensation falls short, you may owe the difference unless the agreement says otherwise. Ask for the shortfall language in plain English. Then ask whether the seller credit counts against your lender’s limit on seller concessions. Conventional, FHA, and VA loans each treat concessions differently, so confirm with your lender before you write the offer. Our guide to why cash to close changes shows where these credits land on the Closing Disclosure.
5. Termination and the protection period
Termination is not automatic. The Close notes that many standard contracts give neither side a termination right unless one is negotiated, and that walking away from an agent does not necessarily end your payment obligation. Many agreements also include a protection period: if you buy a home your agent showed you before termination, they may still be owed. Ask three questions. Who can cancel, and how? Is there a written release? Which homes are covered after termination, and for how long?
Three ways to pay your agent
Your options come down to how much certainty you want and how much cash you want to bring to closing. With the 30-year rate at 7.24% (Freddie Mac’s October 29 survey, via The Mortgage Reports) and Twin Cities sellers receiving 97.8% of list price in September, according to Minnesota Realtors, cash at closing matters.
Percentage of the purchase price, paid by the seller
This is still the most common structure in the east metro. You sign a percentage, then write the offer asking the seller to cover it. Know your fallback if the seller refuses.
Flat fee, with a seller credit request
Consumer Advocates in American Real Estate recommends a flat fee tied to the work expected, per the Star Tribune. A flat fee is easier to compare across agents and does not climb as prices rise. If you do not want to pay it out of pocket, the same group suggests asking the seller for a credit in the offer.
Hourly or limited-service
Fewer buyers need this, but it fits someone who has already found a home and wants help with the contract, the inspection response, and the closing. The NAR guide includes hourly pay as a valid option. Make sure the agreement spells out which services you are not getting.
What to do if you already signed something you do not like
You can ask for a change. Minnesota Realtors has an amendment form for buyer representation contracts, so changing a term does not require starting over. Start with your agent. If the answer is no, ask for the managing broker. KSTP reported in 2025 that 64% of Twin Cities agents who responded said clients had asked to negotiate their commission, so the request is common, not rude.
If you are also selling a home, your timeline is more complicated, and the agreement should account for it. Our guide to buying before selling in the Twin Cities covers how the pieces fit together. If your price range runs above the conforming loan limit, read our jumbo vs. conforming loan guide before you set your price range.
Frequently Asked Questions
Can I tour a home in Minnesota without signing a buyer agreement?
Open houses are exempt, so you can walk through one without a signature. A private showing with an agent is different: Minnesota Realtors members must have a written agreement before touring. You can also decide not to use an agent and deal directly with the listing side, though that comes with its own tradeoffs.
Is the agent’s commission negotiable in Minnesota?
Yes. Minnesota Realtors states that commissions are negotiable and always have been. The NAR consumer guide says the same of buyer agreements. You can negotiate the amount, the structure, the term, and the services.
What if the seller will not pay my agent?
Then you owe whatever your agreement says, minus anything the seller does contribute. Ask before you sign what happens if the seller pays nothing, and decide whether you would rather negotiate a seller credit or pay the fee directly.
Can I fire my buyer’s agent in Minnesota?
You can ask for a release, and many brokerages will give one, but termination is not automatic unless your agreement says so. Read the termination and protection period clauses first. If the agent says no, ask the managing broker and put any release in writing.
How long should a buyer agreement last?
Minnesota requires a definite expiration date, but not a particular length. For a first agreement, I would ask for 60 to 90 days. If the relationship is working, you can extend it with a written amendment.
How to Review a Buyer Agreement Before You Sign
- Find the expiration date and the exclusivity terms. Confirm there is a definite end date and no automatic renewal. Ask what purchases the exclusivity covers.
- Write down the total you could owe. Add the percentage or flat fee and any administrative fee. Ask what happens if the seller pays less.
- Check the exit. Ask who can cancel, how notice works, and whether a written release is available. Get the protection period in months and the list of covered homes.
- Call your lender. Ask whether a seller credit toward your agent’s pay counts against your loan’s concession limit.
Thinking about buying in Woodbury or the east metro and want a second set of eyes on a buyer agreement? Send me what you were handed. I will walk you through it line by line, even if you decide to work with someone else. Reach out at [email protected] or book a call at calendly.com/darintheminnesotan.
Darin Bjerknes | Minnesōtan, Brokered by REAL | [email protected]
