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Mississippi has joined Alabama in creating a law that states that buyers agents and brokers are not required to obtain a signed buyer agency agreement prior to touring a property with a prospective buyer.
Earlier this month, Mississippi Governor Tate Reeves signed Senate Bill 2713 into law. Under the new law, buyers and sellers may make “affirmative election of a specific type of brokerage service that is available from a real estate company by signing a brokerage agreement.”
However, the law does not require real estate licensees representing buyers to sign a buyer agency agreement to provide a tour of a property or for a listing agent to admit prospective buyers into an open house. The law states that licensees must only have to have a brokerage agreement signed with their clients prior to listing a home for sale or submitting an offer on a property if they are going to be compensated for the services they are providing.
This means, according to the text of the bill, that if a listing agent presents an offer from a buyer acting solely for the seller without receiving compensation from the buyer, that the listing agent does not need to have a signed buyer agency agreement with the buyer.
Laws directly conflict with NAR business practices
Alabama Governor Kay Ivey signed a similar bill into law roughly a year ago. Both of these laws directly conflict with the business practice changes outlined in the National Association of Realtors’ (NAR) commission lawsuit settlement agreement. Under the terms of the settlement, buyer’s agents are required to obtain a signed buyer broker agreement prior to touring a property with a buyer.
While the Alabama bill was backed by the state’s Realtor association, Mississippi Realtors did not return HousingWire’s inquiry request about the bill and the association’s potential support of it.
Although Mississippi and Alabama are the only two states to have enshrined this into law, lawmakers in other states, including Wyoming, West Virginia and Oklahoma, are seeking to institute similar statutes.
Other states are following
In Wyoming, state legislators are currently contemplating SF 0105, which was introduced into the state Senate in early January by lead sponsor Senator Bob Ide. In early February, the Senate’s agriculture committee, which is where the bill had been referred, recommended that the Senate pass the bill. However, the Senate has yet to consider the bill.
Regarding when a buyer must sign a buyer agency agreement, this bill is incredibly lenient, as it does not require a buyer to sign a brokerage agreement prior to submitting an offer on a property. The bill creates definitions for real estate licensee “customers” and “clients.” Under these definitions, a customer is someone who has not signed a brokerage agreement, but is working with and interacting with an agent.
Licensees do not represent customers and only owe them things like fair dealing, disclosure of material facts and accounting for money or property. If a buyer would like, they could remain a customer of an agent and still submit an offer on a property under the terms of the bill.
A client, on the other hand, according to the bill, is someone who has entered into a written brokerage agreement with a licensee creating a formal representation agreement. An agent working with a client owes them full fiduciary duty, including full disclosure, confidentiality, loyalty and obedience to lawful instructions.
Written disclosures
Additionally, the bill specifies that prior to entering into a meaningful interaction or brokerage agreement with a buyer or seller, an agent must first provide a written disclosure explaining whether the consumer is client or a customer and the consumer must then sign that disclosure acknowledging receipt of the disclosure. This must be completed prior to a consumer signing a brokerage agreement.
Wyoming Realtors did confirm to HousingWire that the trade association does support the bill.
West Virginia’s interpretation
Across the country in West Virginia, state legislators are considering a similar bill to the one pending in Wyoming. House Bill 5091, whose primary sponsor is Delegate Patrick Lucas, a republican representing the state’s 24th district, passed the state’s House of Delegates earlier this month and is currently pending with the state senate judiciary committee.
According to the bill, if an agent is going to formally represent a buyer or seller they must enter into a written agency agreement that establishes the services the agent will provide, their compensation and any limits on their duty to their client. However, like the bill in Wyoming, buyers are not required to sign an agency agreement before submitting an offer on a property, but if a buyer does sign an agency agreement it only pertains to one specific property.
This means that the agreement ends when the transaction closes or falls apart. Given that buyers would be allowed to submit offers on properties without signing a brokerage agreement, the agent helping the buyer with the offer must provide the buyer with a written disclosure explaining who the various parties in the transaction are, what services the agent will provide and how that agent will be compensated for their work. The bill also specifies that agents are not required to obtain a signed buyer agency agreement in order to take a buyer on a tour of a property.
Additionally, under the bill agents must provide consumers with copies of any brokerage contract they sign.
Like Wyoming Realtors, West Virginia Realtors confirmed HousingWire that it is supporting the bill.
Oklahoma has two bills pending
In Oklahoma, there are currently two bills pending that deal with buyer agency agreements. The first is Senate Bill 1217, which was introduced in early February by primary sponsors Senator Julie Daniels and Representative Mike Osborn, who are both republicans. Under the terms of the bill, brokers are not required to enter into a brokerage agreement with a buyer prior to showing them a property. The bill passed the state Senate on Tuesday and was introduced into the House of Representatives on Wednesday.
The second bill, known as SB 1225, specifies that a broker must disclose any information pertaining to their compensation or fees they charge prior to providing a client with the services they plan to charge for. The bill also reiterates the provision established in SB 1217 that a broker or agent is not required to procure. A buyer broker showing agreement or contract agreement before showing them a property.
This bill, which lists State Senator David Bullard, a republican, as its primary sponsor, was introduced into the Senate in early February, but it has yet to be voted on.
Oklahoma Realtors did not return HousingWire’s request for comment on the bills.
Loosening restrictions
While these five states are seeking to loosen restrictions around buyer agency agreements, at least two other states have taken the opposite approach. In 2025, Texas lawmakers made it mandatory for real estate licensees in the state to enter into a written agreement with a prospective buyer before taking any substantive action. This means that while an agent could unlock the door to a property for a buyer without having a signed agreement, the agent cannot offer any advice or opinions on the property. The law took effect in January of this year.
In addition to this law in Texas, legislators in Oregon enacted a law requiring buyers to sign buyer representation agreement before or shortly after an agent assists them in searching for property.
NAR did not immediately return HousingWire’s request for comment regarding these bills.
I don’t know if Illinois is ahead of the game or what, but I don’t see any of this as being issues for us. The only time that getting buyer agreements signed really becomes an issue is if you are working with total strangers via online leads where they don’t know you and don’t want to sign, and you don’t know them but are willing to invest your time to serve as a glorified door opener and often not have the opportunity to vet the buyers qualifications, timeline, etc. Most of my agents approach their real estate practice with the mindset of a business owner and therefore do not buy online leads, so that situation is not a factor for them. In Illinois, we have what’s called “Notice of No Agency”. When a listing agent is approached by an unrepresented buyer who wants to write an offer, the listing agent can do so under a Notice of No Agency, so they are still fully representing their seller. Our state also allows agents to practice dual agency if their seller (and the buyer agree), but we do not encourage that practice at all. A notice of no agency, in this situation, is much better for the agent’s seller in a number of ways and as a licensee, I do not ever encourage my agents to put their license at risk to practice dual agency with a buyer who is a stranger. So, my agents do not practice dual agency, as a better option is a Notice of No Agency where they can simply perform ministerial acts for the buyer. Easy Peasy. And financially there are compensation savings to the seller as well. Win-win-win! As for my agents working with buyers, I fully support buyers agreements be signed BEFORE any showings. It’s a better approach for both the buyers and the agents. We use exclusive agreements. The buyers get a more professional business person who truly cares about understanding their needs, their timeline, their concerns, etc to ensure the best outcome and most efficient experience possible. Taking this professional approach is a significant differentiator for top agents and the buyers are also more likely to be working with a more skilled, experienced and resourceful agent. Similarly, it provides the agent the opportunity to get a sense of the buyers…where are they in the buying process, what concerns do they have; are they finanically qualified and for how much; what is their timeline and are they a buyer in six months or a buyer now (before they start investing their time to show homes that may not be available when the buyer is truly ready or to later find out they buyer can’t get pre-approved). Since time is finite, as business owners agents must be prudent where and how they give away their time. Buyer coonsultations also provide the agent the opportunity to build rapport and trust while discussing the process; duties of the agent; fair housing, the market dynamics and of course compensation (how they get paid). Albeit I believe firmly in buyer agreements as a must for realtor professionals, I strenuously believe even more in the necessity for the consultation, which the buyer agreement and compensation discussion are a part of. Getting buyers agreements signed simply for the sake of it misses the entire boat; does a disservice to the buyer and commoditizes the real estate professional. Conducting solid buyer consultations are clear differentiators among agents. One aspect of the lawsuits was around transparency. Simply getting agreements signed (to show a property) without a full consultation and comprehensive discussion around how agents get paid is not in keeping with that need for greater transparency. It’s simply getting through the red tape. The agreements are intended to give full transparency and clarity to the buyer, if actually reviewed with them; they are also there to support the agents work. But wrapped into a full and proper Buyer Consultation is where the real magic happens; clients are fully informed and get clarity; agents evaluate alignment through the consultation and a committment via the buyer’s agreement. Buyer’s agreements when incorporated properly, also help to elevate true real estate professionals from the unskilled hobbiests. Even if Illinois were to hop on board with this wave that seems to be building, I would mentor my agents to continue to build strong businesses and value by conducting thorough consultations and obtaining signed buyer consultations regardless. I’m sure you all will agree that our industry could greatly benefit from an elevation in both standards and conduct.