If you are looking to buy a home in Nassau or Suffolk County, you may have noticed a significant change in the process. Before a real estate agent can unlock a door and show you a home, they are now required to ask you to sign paperwork.

This recent shift, largely stemming from the nationwide National Association of Realtors® (NAR) settlement, has left many prospective Long Island buyers confused. Why so many signatures before you've even found a house you like?

The short answer is transparency. The new rules are designed to ensure buyers fully understand exactly who represents them and how their agent will be paid.

To help you navigate the Long Island market with confidence, here is a breakdown of the three mandatory forms your REALTOR® will present to you before your first showing.

1. The New York State Agency Disclosure Form
This form is not new, but it is essential. New York State law requires real estate licensees to advise potential buyers about the nature of their agency relationship.

What it is: This document defines the roles a broker can play:

Buyer's Agent: Represents your interests, providing fiduciary duties like undivided loyalty and confidentiality.

Seller's Agent: Represents the seller's interests.

Dual Agent: Represents both buyer and seller with their informed consent, though fiduciary duties are limited in this scenario.

Why you sign it: To confirm you understand who the agent works for in the transaction.

Important Note: The form itself explicitly states at the top: "THIS IS NOT A CONTRACT".

2. The New York State Housing and Anti-Discrimination Disclosure
This is the second state-mandated form you have likely seen before. It reinforces commitment to compliance with Federal, State, and local Fair Housing laws.

What it is: A disclosure stating that discrimination in housing based on protected characteristics—such as race, religion, national origin, sex, disability, and familial status, among others—is illegal.

Why you sign it: It confirms that the real estate professional has presented you with your rights. It ensures agents do not engage in discriminatory practices like "steering" buyers toward or away from certain neighborhoods based on protected characteristics.

3. The Buyer Representation Agreement (The Big Change)
This is the newest requirement that is changing how buying works on Long Island. Due to recent industry changes, a written agreement is now required before a buyer tours a property with a REALTOR®.  The only exception to this is if you are touring a home as an unrepresented buyer with the listing agent. In this case you will still need to sign the agency disclosure form acknowledging that you understand that the agent is representing the interests of the seller and not you.

Previously, agents might have worked with buyers on a handshake agreement initially. Now, the scope of work and compensation must be defined in writing upfront. This agreement allows you to engage a qualified licensee to provide services such as locating and analyzing properties, contract negotiation, and advocacy throughout the purchase process.

The Critical Element: Compensation Transparency
The most significant part of this new agreement is how it addresses agent fees. The forms now clearly state in bold language that BROKER COMPENSATION IS NOT FIXED BY LAW. It is individually set by each broker and is fully negotiable between you and the broker.

The agreement spells out how much the broker will be paid. While the contract technically states the buyer agrees to pay the Broker Fee, it also includes provisions where you can request that the broker attempt to collect that fee from the Seller through the sale proceeds.

Exclusive vs. Non-Exclusive: Knowing Your Options
You will generally be presented with one of two versions of this agreement. 

A. The Exclusive Buyer Representation Agreement This option means you are engaging that specific brokerage firm exclusively to represent you in a defined geographic area for a specific period of time. You agree to work only with them and not other real estate professionals during this term. 

Why choose this: You want a dedicated advocate fully committed to your search.

Key Consideration: Under an exclusive agreement, the broker fee is payable if you purchase any property within the scope of the agreement during its term, regardless of how you found it.

B. The Non-Exclusive Buyer Representation Agreement This option allows you to engage a broker to represent you, but not exclusively. You are generally free to work with other brokers on different properties.

Why choose this: You want flexibility early in your search.

Key Consideration: You only agree to pay the Broker Fee for properties where that specific broker was the "procuring cause" for the contract of sale—meaning they were the ones who introduced you to the home and facilitated the offer.

Summary for Long Island Buyers
While signing three forms before seeing a single house might feel overwhelming, these changes are ultimately designed to protect you. They ensure you know exactly what services your agent will provide and how they will be compensated before you begin touring homes on Long Island.

Disclaimer: This information is for educational purposes and relates to standard forms used by the Long Island Board of Realtors (LIBOR). Specific brokerage policies may vary.

Written by: 
Christopher Robson
Licensed Real Estate Broker
Educators Realty
Molloy University Real Estate Faculty
(516) 459-9564