As of 2025, Oregon’s real estate landscape is shifting with the passage of House Bill 4058 (HB4058)—a new law that requires a written buyer broker agreement “before or as soon as possible after a real estate professional begins assisting a buyer in purchasing or identifying property.” This means buyers can no longer casually engage an agent without formalizing the relationship early in the process. The intent of the bill is to provide clarity, transparency, and mutual understanding between buyers and their agents—but it also introduces some very important considerations for home buyers.
What Is a Buyer Broker Agreement?
A buyer broker agreement is a written contract that outlines the working relationship between a buyer and their real estate agent. It clarifies the agent’s responsibilities, the scope of services, and the fees that may be charged. Again, HB4058 mandates this agreement be in place before—or as soon as possible after—an agent begins helping a buyer find or purchase a property.
There are two main types of buyer broker agreements:
- Exclusive Buyer Broker Agreement: This binds the buyer to work with only one agent during the term of the agreement. Even if the buyer finds a property independently or through another agent, they may still owe compensation to the agent they originally signed with.
- Nonexclusive Buyer Broker Agreement: This allows the buyer flexibility to work with multiple agents and typically only obligates payment if the agent is the one who brings the deal together.
Fees and Who Pays Them
The agreement must clearly outline any fees, whether they are a flat rate, hourly, or a percentage of the purchase price. Traditionally, a buyer’s agent’s compensation comes from the seller. However, under the new rules—and in an evolving market—buyers may be required to pay these fees out of pocket if the seller does not offer compensation. Interestingly, commissions for buyer’s agent have slightly increased since these new rules took effect (per a Housingwire article, national average is now 2.4%).
The Risk of Signing an Exclusive Contract
Buyers should not take lightly the decision to sign an exclusive agreement. Once signed, it may lock you into working with a single agent—potentially even if the relationship becomes strained or unproductive. Always read the terms carefully and ask questions. Make sure the agreement includes termination clauses and clarifies obligations on both sides.
What This Means for You as a Buyer
If you’re planning to purchase a home in Oregon, be prepared to sign a buyer broker agreement early in the process—possibly even at your first consultation. This is no longer optional, however the terms of the agreement are always negotiable.
Here are a few tips:
- Clarify if the agreement is Exclusive or Nonexclusive. If Exclusive, be aware that you will be “locked in” with that agent for the duration of the agreement, and if things turn south and you want out early, you may be subject to a fee.
- Understand whether the seller is offering compensation to buyer brokers on the homes you’re considering. You, as the buyer, are responsible for the fee agreed upon in the Buyer Broker Agreement. If the seller of the home you are considering is not willing to cover the full fee, you may be responsible to make up the difference out of pocket at closing. For example, if your agreed upon fee is 3% of the purchase price and the seller is willing to cover 2%, you may be required to pay the additional 1% out of pocket.
HB4058 places new responsibilities on buyers. Take the time to understand the proposed agreement and choose a broker who aligns with your needs and values. If you feel pressured to sign an agreement that you do not fully understand, step back and take some time to review, research and ask questions. When in doubt, request a short-term, nonexclusive agreement to begin with.
Have questions about buyer broker agreements or navigating the home buying process in Oregon? Reach out—I’d be happy to help you understand your options.
Quinn Burke – Kithkin Real Estate
503-881-8405