How your buyer's agent gets paid in Utah and Idaho

For decades, most buyers never saw a bill from their agent. The listing brokerage posted an offer to pay the buyer's broker on the MLS, and the seller funded it out of the sale. Buyers often had no written agreement with their own agent at all.

That changed with NAR's settlement of the home-seller commission lawsuits. NAR says the practice changes took effect on August 17, 2024, and the U.S. District Court for the Western District of Missouri granted final approval on November 26, 2024. Two changes matter most to you as a buyer.

• Offers of compensation to buyer brokers can no longer appear on MLSs covered by the settlement. Sellers and listing brokers can still offer to pay your agent, but the offer has to be made off the MLS.
• If you work with an agent who is an MLS participant, you sign a written agreement with that agent before you tour a home. The agreement sets what your agent will be paid.

The settlement didn't set commission rates, and it didn't stop sellers from paying buyer agents. What it did was put your agent's pay in writing, in a document you sign, before the work starts. That makes the fee your decision to negotiate, not a number you inherit from the listing.

This page is general information about the NAR settlement practice changes, Utah and Idaho licensing rules and federal loan guidelines as of October 2026. It isn't legal, tax or lending advice. Read your buyer agreement and purchase contract before you sign, and ask your lender, a real estate attorney or a tax professional about your situation.

NAR's settlement FAQs say the written agreement must include four things about compensation.

• A specific and conspicuous disclosure of the amount or rate your agent will receive, or how that amount will be determined.
• Compensation that is objective, such as $0, a flat fee, a percentage or an hourly rate. It can't be open-ended, like "whatever the seller is offering." NAR's FAQs say a range such as "between X and Y percent" isn't allowed either.
• A term that bars your agent from receiving compensation for brokerage services from any source that exceeds the amount or rate in your agreement.
• A conspicuous statement that agent fees and commissions are fully negotiable and not set by law.

NAR defines touring a home as you or the agent entering the house, including when the agent walks through to give you a live virtual tour. A "home" here means a property with one to four residential units. The rule applies to agents who are MLS participants working with you. State law can require an agreement earlier.

Some things don't trigger the requirement. NAR's FAQs say you don't need an agreement just to speak with an agent at an open house or to ask about their services. A listing agent who opens a home for you while acting only for the seller isn't working with you, so no buyer agreement is needed for that.

NAR also doesn't dictate the shape of the agreement. Its FAQs say NAR policy doesn't set the type of relationship, the term (one day, one month, one house or one ZIP code), the services or the amount. You and the agent can amend the agreement later, as long as the amended version also meets these requirements.

That flexibility is useful. If you're not ready to commit to one agent for months, you can ask for a short agreement that covers a single showing or a single property. The agent may decline, but it's a fair request.

Utah's real estate rules require a written agency agreement whenever a licensee represents you. Rule R162-2f-401a(2) says an individual licensee must define the scope of agency by executing a written agency agreement with the principal, including buyers the licensee represents.

The same rule lists the fiduciary duties your agent owes you once you are a client (R162-2f-401a(1)):

• Loyalty, which puts your best interests above anyone else's, including the agent's own.
• Obedience to your lawful instructions.
• Full disclosure of material facts the agent learns about the other party or the transaction.
• Confidentiality for information that would weaken your bargaining position, with exceptions for known material facts about a property defect or a client's ability to perform.
• Reasonable care and diligence.
• Holding safe and accounting for money or property entrusted to the agent.
• Any additional duties the agency agreement creates.

A few other parts of R162-2f-401a matter when money is involved.

• If one agent represents both you and the seller as a limited agent, the agent must explain the arrangement in writing and get written acknowledgments from both parties first (R162-2f-401a(3)).
• Your agent must disclose in writing to each party any compensation, beyond the real estate commission, that the agent will receive in connection with the transaction (R162-2f-401a(16)).
• Your agent must give you copies of the signed purchase agreement (R162-2f-401a(13)).

The Utah rule requires the written agreement but doesn't list its compensation terms. Those come from the NAR requirements above, if your agent is an MLS participant, and from whatever you negotiate. Read the agreement for its start and end dates, what it covers and what happens if you buy a home on your own during the term.

Idaho's statute is more specific. Idaho Code § 54-2050(2) says every buyer representation agreement, exclusive or not, must contain:

• Conspicuous and definite beginning and expiration dates.
• All of your financial obligations, if any, including fees or commissions.
• The manner in which any fee or commission will be paid to the broker.
• Appropriate signatures and their dates.

Section 54-2050(3) bars a clause that makes you notify the broker after the expiration date that you intend to cancel. The only exception is an agreement that is completely nonexclusive and has no fee owed by you. In other words, an agreement that can cost you money can't quietly renew itself. The agent must also give you a signed copy when you sign (§ 54-2050(5)).

Idaho Code § 54-2085 covers timing and disclosure. A licensee must give you the Idaho Real Estate Commission's agency disclosure brochure at the first substantial business contact. That disclosure must say conspicuously that no representation exists without a written agreement. Your relationship with the brokerage must be set, and the needed agreements signed, no later than preparation of a purchase and sale agreement. The NAR rule sets an earlier point, before touring, for MLS participants.

Once you sign, Idaho Code § 54-2087 spells out the brokerage's duties to you. They include performing the written agreement, exercising reasonable skill and care, presenting offers and counteroffers in a timely way, and promoting your best interests in good faith, honesty and fair dealing. The statute says these duties can't be waived.

If any of these points is unclear, ask for the language in writing before you tour. Changing an agreement is easier before you've found the house you want.

Your agreement must state that commissions are fully negotiable and not set by law. That means the first number you see is an opening position.

• Pick a structure. NAR's FAQs list $0, a flat fee, a percentage or an hourly rate as examples. A flat fee is easy to compare. A percentage grows with the price.
• Match the fee to the services. Ask how many showings, what negotiation and inspection help, and whether the agent attends closing. A smaller scope can justify a smaller fee.
• Decide who pays any gap. Most of the risk sits here. If your agreement sets 2.5% and the seller agrees to 2%, the agreement decides whether you owe the other 0.5%.
• Don't count on the seller. Since offers can't be posted on the MLS, you won't always know in advance what a seller will pay. Budget for the case where the seller pays nothing.
• Get changes in writing. NAR's FAQs say you and your agent may amend the agreement later, and the amended agreement must still meet the requirements.

Here's a hypothetical example. You agree to pay your agent 2.5% of the price, and your agreement says you owe any part the seller doesn't cover. You buy a $500,000 home, so the fee is $12,500. The seller agrees in the contract to pay 2% to your brokerage, which is $10,000. You owe the remaining $2,500 at closing. If the seller had offered 3%, your agent still couldn't collect more than $12,500, because of the cap from all sources.

Sellers still pay buyer agents in many deals. NAR's FAQs describe several ways your agent can be paid. You can pay directly, the listing brokerage can share its compensation, the seller can agree to pay off the MLS, or a seller concession can help. Which route applies is a term of your offer.

In Utah, most offers use the state-approved Real Estate Purchase Contract (REPC), effective December 4, 2024. Section 4.3(e), Real Estate Brokerage Compensation, has a blank for a percentage of the price or a dollar amount the seller will contribute to your brokerage. The REPC calls this the "Seller's Compensation Contribution."

• If no amount is entered, the seller hasn't agreed to compensate your brokerage in the REPC.
• The seller's contribution is in addition to anything the listing brokerage has agreed to pay your brokerage.
• You agree that the seller's contribution plus any listing-brokerage payment won't exceed what you owe your brokerage under your written buyer-broker agreement.

So you ask for it in the offer, and the seller can accept, counter or refuse, like any other term. Asking for more than your agreement allows doesn't help, because the excess can't go to your agent. Our seller-side guide at /selling-costs/buyer-agent-commission/ covers the same clause from the seller's point of view.

In Idaho, any seller payment to your brokerage also belongs in the purchase agreement. The Idaho REALTORS® purchase agreement forms are available to members, so ask your agent to show you where compensation is addressed in the version you'll sign. Idaho Code § 54-2050(2)(c) already requires your buyer agreement to say how your broker's fee will be paid.

A seller concession is different from a direct payment to your agent. It's a credit toward your closing costs. NAR's FAQs say an MLS can allow a seller to advertise a concession, but it can't be limited to or conditioned on the buyer using or paying a buyer's agent. Whether a concession can be applied to your agent's fee depends on your loan program and lender, so ask before you write the offer.

If the seller refuses and the listing brokerage isn't paying your agent either, your buyer agreement controls. If it says you pay, you owe that amount, usually at closing. You have several ways to handle it.

• Pay it at closing with your own funds. NAR's 2024 FAQs said FHA, Fannie Mae and Freddie Mac would not let a buyer finance an agent's commission into the mortgage at that time. VA's Circular 26-24-14 also says buyer-broker charges can't be included in the loan amount. Plan for the cash.
• Adjust the price. Some buyers offer a lower price, knowing they'll pay their agent themselves. The seller nets about the same either way.
• Ask for a closing-cost concession instead. This frees up your cash for the agent's fee. Lender limits apply, and some programs restrict what a concession can pay for.
• Renegotiate with your agent. If a house is right but the numbers don't work, ask whether your agent will reduce the fee for this deal. Get any change in writing.
• Walk away. If the total cost is more than you can carry, it's fine to move on.

The most common surprise is cash to close. Before you write an offer, ask your lender for an estimate that includes your agent's fee as if the seller pays nothing. Then any seller contribution is a bonus, not a gap.

Loan programs limit how much an interested party can contribute toward your costs. Interested parties include the seller and the real estate agents or brokers, as both Fannie Mae and FHA define the term. Each program treats a seller's payment to your agent differently from a credit to you.

Fannie Mae's figures come from Selling Guide B3-4.1-02, dated May 7, 2025. Its concessions can only go toward closing costs, prepaids and certain HOA dues, and can't exceed your actual closing costs. Anything above the limit is treated as a sales concession and deducted from the price used to figure your loan-to-value ratio. Fannie Mae also says undisclosed contributions make a loan ineligible.

FHA's rule comes from HUD Handbook 4000.1. Contributions above your actual costs, or above 6%, are treated as an inducement to purchase. The lender must list interested party credits on the Closing Disclosure.

VA had long barred veterans from paying real estate brokerage charges. Circular 26-24-14, effective August 10, 2024, created a temporary variance. It lets veterans pay reasonable and customary buyer-broker charges where offers can't be posted on the MLS or can't flow through the listing broker. The charges can't be included in the loan, and they count when the lender checks whether you have enough cash to close. The circular is valid until rescinded, and VA's circulars page still listed it in October 2026. Ask your lender whether it's still the current policy.

Freddie Mac and USDA have their own guidelines, which we haven't summarized here. Your lender applies the rules for your specific loan, so treat this section as a starting point and confirm with them.

In Utah, buyers who purchase with JupiDoor can get 1% of the purchase price back when the seller offers a 3% buyer-agent commission. JupiDoor keeps a 2% minimum, so there's no cash back when the commission it receives is 2% or less.

The cash back is paid as a closing credit, a check or a commission adjustment. It's available in Utah only. The full terms are at /cashback/.

Because it comes from the brokerage, it's tied to your loan. Utah's rules allow an inducement gift to a buyer only if the broker or agent offering it complies with the underwriting guidelines for any loan in the deal (R162-2f-401l). Fannie Mae and FHA count real estate brokers as interested parties, so your lender may limit how a credit is applied. Our guide at /buy/guides/cash-back-rebate-taxes/ covers the legal and tax side in more detail.

• What exactly will I owe you, and in what form: a percentage, a flat fee or something else?
• If the seller pays part of your fee, how is the rest handled? If the seller pays nothing, what do I owe?
• How long does the agreement last, and does it cover all homes or only certain ones?
• Is it exclusive? If I find a home on my own during the term, do I still owe you?
• Will your brokerage ever represent the seller in the same deal? What changes for me if it does?
• Will you receive any compensation other than the commission? Utah rules require that to be disclosed in writing.
• Can we start with a short agreement for one showing or one property?

Write the answers into the agreement, not just your notes. If an agent won't put something in writing, treat that as your answer.