The New Buyer Exclusive Agreements: Why New York’s Latest Real Estate Mandates Miss the Mark for Consumers

The New Buyer Exclusive Agreements: Why New York’s Latest Real Estate Mandates Miss the Mark for Consumers

By Kelly Robinson

Dear New York State lawmakers,

Let me paint you a picture: You’re at a speed-dating event, nervously sipping a questionable Chardonnay, when suddenly someone leans in and says, “We have to get married before dessert.” No second date, no conversation about hobbies or middle names—just immediate commitment. Feels a little intense, doesn’t it? Well, that’s essentially what these new state-mandated buyer exclusivity agreements are doing to the real estate process. And let me tell you, no one—buyers or agents—likes being forced into something that feels more like a hostage situation than a relationship.

For those not obsessively reading real estate news (lucky you), here’s the gist: New York State is now mandating that buyers sign exclusivity agreements with their agents and agree to pay their agents’ commissions directly in the event the seller does not. This, apparently, is meant to “empower” consumers. Spoiler alert: it doesn’t.

Consumers Are Getting the Short End of the Stick

Let’s talk about this supposed empowerment. The idea is that when buyers pay their agents’ commissions directly, it somehow levels the playing field. But let’s call this what it is: a thinly veiled attempt to shift the cost burden entirely onto buyers, who are already dealing with skyrocketing prices, higher interest rates, and closing costs that make a BMW lease look like pocket change.

And here’s the real kicker: buyers can’t roll the broker’s commission into their loan. Instead, they have to pay the commission out of pocket, up front. For buyers already stretching to cover down payments, this is a huge blow. It makes homes less affordable and pushes properties out of reach for many.

But it’s not just buyers who suffer—sellers feel the pain, too. When buyers are forced to come up with extra cash for broker fees, they’ll inevitably lower their offers to compensate. The result? Sellers lose out on higher sale prices, and property values across the board take a hit. This domino effect doesn’t “empower” anyone; it just makes the whole system worse for everyone involved.

Congratulations to the NAR Class Action Lawsuit prosecutors who made $233 million getting this implemented and the plaintiffs who will make “a minimum of $13.00 each”. 

The Loyalty Myth

And then there’s the exclusivity agreement. Ah, exclusivity—the cornerstone of so many successful hostage negotiations. Once upon a time, agents built loyalty with buyers by doing what agents do best: hustling, listening, advising, and being in their corner. It wasn’t about contracts; it was about relationships. You didn’t have to lock someone into a legally binding agreement to prove your worth—you just proved it.

Personally, I’ve always handled this differently. After the first few showings with a buyer I just met, I’d have “the talk.” I’d let them know: my time is valuable. If we’re going to keep working together, we’re going steady—meaning they’re committing to me as their agent—or I’m going to focus on buyers who value my expertise. Nine times out of ten, that was enough. They’d either verbally commit, or I’d gracefully bow out before wasting anyone’s time. No contracts, no pressure, just mutual respect.

But these mandates are turning what used to be a collaborative process into a transactional one. Buyers are now forced to commit to an agent right out of the gate, often before they’ve had a chance to build trust or rapport. It’s like making someone sign a prenup before you’ve even gone on a first date.

A Case for Choice

Here’s the thing about buyers: They’re not just spreadsheets and closing dates. They’re people. People who want to feel empowered to make choices that work for them. People who want flexibility and transparency, not a legally binding contract shoved in their face before they’ve had a chance to decide if they even like you.

As agents, we’ve always known that building trust takes time. It’s about proving your value and earning loyalty—not demanding it upfront. When buyers feel cornered or coerced, it doesn’t lead to stronger relationships; it leads to resentment. And let’s be honest—no one is going to marry you if you’re holding them hostage with a contract.

A Better Way Forward

Instead of mandating exclusivity agreements and shifting financial burdens, let’s focus on making the real estate process more transparent and collaborative. Educate buyers on the value of having a dedicated agent, but let them decide when and how they want to commit. Keep the commission structure simple, fair, and buyer-friendly, so consumers can focus on what really matters: finding their dream home.

New York real estate is already challenging enough. Let’s not make it harder for the very people we’re supposed to be helping. Because at the end of the day, no one wants to feel like they’ve been strong-armed into a relationship—whether it’s with an agent or a home. Trust is earned, not mandated.

Kelly Robinson

Real Estate Broker / Founder, The One Global Advisory Team at Compass 

Writer of strong opinions, builder of trust, and defender of common sense.