Multiple Choice Question: If an agent is working with a prospective tenant, is the agent required to get a written tenant-broker agreement before showing a property? Pick the best answer:

A. Yes, as according to the NAR Settlement Agreement.
B. Yes, as according to California law.
C. Yes, as according to the rules of certain MLSs.
D. No, but that would be best practices for the agent. 

Answer: Answer A is wrong. The 2024 NAR Settlement Agreement from the Sitzer/Burnett litigation did not directly impose any requirements on tenants’ agents. Instead, the NAR Settlement Agreement required NAR to impose an obligation on the MLSs to have their MLS participants, who are working with a buyer, to enter into a written buyer-broker agreement before the buyer tours a property.

Answer B is wrong. Effective January 1, 2025, a new California law generally requires a buyer’s agent to enter into a written buyer-broker representation agreement as soon as practicable, but no later than the signing of a buyer’s offer to purchase (see California Civil Code section 1670.50(a)). This new law does not apply to tenants’ agents.

Answer C is the correct answer, but be sure to also review the discussion below for Answer D. As a result of the NAR Settlement Agreement, MLSs generally require their buyer-broker participants to enter int a written buyer-broker agreement before the buyer tours a property (see, for example, CRMLS Rule 9.1). Some MLSs have extended that written-agreement requirement to include tenants, whereas others have not.

For example, CRMLS specifically says that “All references to the buyer(s) shall also include tenant(s)” (see CRMLS Rule 8.5). Yet, TheMLS/CLAW does not require a written tenant-broker agreement (see TheMLS/CLAW Rules 8.3 and 8.8). If you belong to another MLS, you can look up your own local MLS Rules and Regulations to see whether it requires written tenant-broker agreements.

Answer D is wrong, but it nevertheless provides an important warning to agents! Regardless of whether your local MLS requires written tenant-broker agreements, you should still get one signed by the tenant as soon as possible. You can use C.A.R.’s Tenant Representation and Broker Compensation Agreement (TRBC).

Your local MLS no longer offers tenants’ agents any cooperating compensation for procuring a tenant. Getting a signed TRBC helps to ensure that you will get paid. As with a buyer-broker agreement, any compensation that the landlord eventually agrees to pay you will offset whatever the tenant may owe you under the terms of the TRBC.

-Thank you to Kayo Yoshida (Beverly Hills Office) for suggesting this week’s legal tip!

Copyright© 2025 Shared Success Center, LLC (serving HomeServices of America companies). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of June 9, 2025. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.