It is one of the first oddities of the American market for anyone coming from Brazil. There, a sale usually has one agent in the middle, serving both sides. Here, the norm is to have two: one representing the seller, another representing the buyer. Each works for their own side, and the negotiation happens between them from beginning to end.

Hence the expression used in the episode: adopting an agent. You do not hire a professional per property — you choose someone who will follow the entire search, write the offers, run the inspections and go all the way to the handover of keys. And, since 2024, that choice has become a mandatory signed document.

Why two agents change your result

The seller's agent has one clear duty: to obtain the best terms for the seller. They are friendly, attentive, they open the house on Saturday — and they work for the other side. Anyone who shows up alone at an open house and negotiates directly with them is at a table where only one side has representation.

The buyer's agent does the work nobody sees: reads the price history and days on market for that micro-area, compares recent sales to say whether the asking price is high, suggests which contingencies to keep, writes the offer in a way that is easy to accept, recommends an inspector and follows escrow. In a market that goes into contract within days, that preparation is what decides a bidding war.

The written agreement became mandatory in 2024

This is the most important recent change in the American market and it still catches people by surprise. Since August 17, 2024, as a result of the settlement entered into by the National Association of REALTORS®, an agent working with a buyer must have a written representation agreement signed before showing the first property — including live virtual tours.

And that agreement must state, specifically and conspicuously, how much the agent will be paid, or how that amount will be determined. No more "we will sort it out later".

Who pays the buyer's agent — the part that really changed

Historically, the seller offered, through the MLS listing itself, a commission to be shared with the buyer's agent, and the buyer had the feeling of paying nothing. After the same settlement, offers of compensation stopped being published on the MLS, and compensation on the buyer's side became explicitly negotiable.

In practice, payment today can come through three paths, alone or combined: a seller concession negotiated inside the purchase contract, direct payment by the buyer, or a mix of the two. What changed was not so much the final outcome — it was the fact that the number is now discussed in the open, before anything starts. The one who comes out ahead is the one who asks.

Exclusivity, term and how to get out

The representation agreement usually provides for exclusivity, a term and a geographic area. Before signing, check four things:

• Term. If it is the first time you are working together, a short term is reasonable — you can renew as many times as you like.
• Scope. Which region and which property type does it cover? An overly broad scope ties you down unnecessarily.
• Compensation. The percentage or amount must be in writing, including the possibility of the seller covering part or all of it.
• Cancellation. Is there a termination clause? How does the agent's protection work if you buy, right after the term ends, a property they showed you?

A point Brazilians need to know: dual agency exists in California

The general rule is two agents, but California allows the same professional or the same brokerage to represent both parties — so-called dual agency — provided both are informed in writing and consent. That is why there is an agency relationship disclosure form, signed right at the start.

It is not illegal and it happens frequently, especially inside large brokerages. But it is good to go in knowing: in that setup, nobody is negotiating price exclusively on your behalf. If you prefer dedicated representation, say so up front — it is a common and perfectly acceptable request.

How to choose

Less marketing, more evidence. Ask how many transactions the person closed in your micro-area and in your price range over the last twelve months. Ask to see a comparative report of recent sales and to hear their reading of the days-on-market number there. Confirm the license with the state agency — in California, the Department of Real Estate maintains a public lookup. And test communication: in a market that answers in three days, an agent who takes a day to reply costs you a house.

This text is informational and does not replace legal advice. Compensation practices and forms change; confirm the current terms before signing.

Sources and verification

• National Association of REALTORS® — practice changes in force since August 17, 2024: written agreement with the buyer before touring and specific disclosure of compensation.
• NAR — end of publishing offers of compensation to the buyer's agent on the MLS and explicit negotiation of compensation.
• California Association of REALTORS® — buyer representation and agency relationship disclosure forms.
• California Civil Code — rules on dual agency: permissible upon written disclosure and consent of the parties.
• California Department of Real Estate — public lookup of licenses for agents and brokerages.

Watch this part of the episode:

The importance of "adopting" an agent you trust — starting at 20:53 · CADÊ BRAZIL