Fact Pattern: You are a buyer’s agent with a 3-month C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). The BRBC ends on May 20, 2025. There is no Continuation Period. Your buyer has entered into a purchase agreement that is scheduled to close escrow on June 10, 2025.

Multiple Choice Question: Should you extend the end date of your BRBC to include June 10, 2025? Pick the best answer:

A. Yes if you want the authority to represent the buyer.
B. Yes if you want an entitlement to compensation.
C. Both A and B.
D. No. 

Answer: Answer A is the best answer. The law generally requires you to enter into a “buyer-broker representation agreement” as soon as practicable, and before the buyer writes an offer. A “buyer-broker representation agreement” is legally defined as a written agreement “by which the buyer’s agent has been authorized by the buyer to provide” real estate services. The contract must include a provision concerning “contract termination,” among other things. The contract cannot last longer than 3 months.

Yet, the “Confirmation of Agency” in paragraph 2 of C.A.R.’s Residential Purchase Agreement (RPA) actually says that the agency relationships “are hereby confirmed for this transaction.” That language could arguably be construed as an extension of your authorization to be the buyer’s agent until the close of escrow. However, instead of relying on the wording in the “Confirmation of Agency,” the safer approach is to simply extend your BRBC to include June 10, 2025. To do the extension, you can use C.A.R.’s Modification of Terms – Buyer Representation Agreement (MT-BR).

Answer B is wrong. The BRBC specifically states that “Broker shall be entitled to compensation whether any escrow resulting from this Agreement closes during or after the Representation Period” (see paragraph 4D(1)). Based on that language, you are still entitled to compensation even after the representation period has ended.

Answer C is wrong, because Answer B is wrong.

Answer D is not the best answer. It is theoretically possible that a buyer and buyer’s agent have such a bad relationship that the agent just wants the agency relationship to terminate on May 20, 2025, which is during the pendency of the purchase transaction. However, nothing in the Fact Pattern mentions anything about a breakdown in the agency relationship. Most buyers’ agents would want their authority to act on the buyer’s behalf to continue for the period from May 21, 2025 until the close of escrow on June 10, 2025. As discussed above, best practices dictate that you get an MT-BR extending your representation period to include June 10, 2025.

-Thank you to Jane Sha (Pasadena 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 April 28, 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.