As of 2025, a major shift hit the California housing market: sellers are no longer obligated to pay the buyer’s agent commission.
This change comes from AB 2992, a new state law tied to the nationwide settlement that’s reshaping how real estate agents get compensated.
For decades, commissions worked like this: sellers paid 5–6% of the sale price, split between the listing agent and the buyer’s agent. Buyers rarely thought about commissions because they were “baked in.” But under the new rules, that structure disappears.
Now, if you’re a buyer, your agent must have a written agreement with you—signed before or at the time you submit an offer—clearly spelling out how they will be paid. And unless the seller agrees to cover it in writing (via the Listing Agreement or the Purchase & Sale Agreement), you could be on the hook for your agent’s fee.
Here’s the bottom line:
You might have to pay your agent out of pocket. That could be tens of thousands at closing.
Written agreements are mandatory. No agreement, no representation.
Commission is negotiable. Sellers can still agree to cover it—but only if it’s included in the deal documents.
Always confirm—in writing—whether the seller will cover buyer’s agent fees. Don’t assume it’s automatic.
The rule change raises a real question: if you already spend hours scrolling Zillow or Redfin, why should you pay 2–3% of the purchase price for a buyer’s agent?
For example, on a $2 million property, that’s $40,000–$60,000 in commission—money that could stay in your pocket.
This is why more California buyers are turning to real estate attorneys instead of brokers.
Unlike real estate agents, who can represent both sides of the deal in what’s called “dual agency,” attorneys cannot. A lawyer’s fiduciary duty to the client is absolute—meaning:
Confidentiality: Your information stays protected.
Undivided loyalty: No divided interests, no double-ending.
Conflict-free representation: Lawyers are legally barred from representing both sides in a transaction.
Plus, instead of paying a percentage commission, attorneys can work on a flat fee—often just a fraction of what a broker would charge. That could mean saving tens of thousands while getting higher-quality representation.
Lower Cost
Pay a flat fee instead of a 2–3% commission.
Pro tip: ask about a 1% finder’s fee instead of a full commission when negotiating.
Better Negotiation Position
If the seller isn’t paying your broker, that money stays in their pocket—giving you leverage.
Higher Fiduciary Duty
Attorneys are bound by stricter ethical rules than brokers.
No Dual Agency Risks
Your lawyer can’t represent both sides—period.
California’s AB 2992 marks a seismic shift in how real estate transactions are handled. For buyers, it’s no longer safe to assume your agent gets paid by the seller. That means big surprises at closing—unless you prepare.
The good news? You have options. Hiring a real estate attorney can give you stronger protection, eliminate conflicts of interest, and often save you a fortune compared to traditional buyer’s broker commissions.
At Loophole Lawyer, PC, we help buyers and investors structure deals strategically, avoid pitfalls, and protect their financial future.
📞 Contact us today before you make your next offer.