Realtor Fees in California

Who pays, what’s negotiable and what changed in 2024, explained plainly

Last updated September 2026 · By Melissa DiVita, REALTOR®, Compass · DRE #01387955 · Marin native, in real estate since 2003

Key takeaways

  • Every fee is negotiable. California law requires listing agreements to say the rate of commission “is not fixed by law.”
  • Since August 17, 2024, buyers working with a REALTOR® sign a written agreement before touring homes, and it must state the agent’s compensation clearly: a flat fee, a percentage or $0, never an open-ended amount.
  • Offers of buyer-agent compensation are no longer allowed on the MLS, but sellers can still agree to pay a buyer’s agent, or offer concessions, off the MLS.
  • In practice, fees are still often paid from the sale proceeds, but who pays is now a negotiation, not an assumption.

What changed in 2024

As part of a national settlement, the National Association of REALTORS® changed two long-standing practices, effective August 17, 2024:

  1. Written buyer agreements. Before touring a home, in person or virtually, a buyer signs a written agreement with their agent. It has to spell out what the agent will be paid, and it can’t be open-ended. It also has to state that fees are fully negotiable and not set by law.
  2. No compensation offers on the MLS. Listings can no longer advertise what the seller will pay a buyer’s agent. Sellers can still offer it off the MLS, and they can still offer buyers concessions such as closing costs.

In California, agents typically use the California Association of REALTORS® Buyer Representation and Broker Compensation Agreement to meet the new requirement.

Who pays what, today

Typically paid byHow it works now
Listing agentSellerSet in the listing agreement; negotiable
Buyer’s agentBuyer, seller or bothSet in the buyer agreement; the buyer can ask the seller to cover it as part of the offer
Escrow and titleVaries by county and by contractNegotiable in the purchase agreement
County transfer tax (Marin)Customarily seller$1.10 per $1,000 of value

How it plays out in Marin

The rules changed, but in a lot of Marin transactions the numbers look similar to before. Many sellers still agree to cover the buyer’s agent because it widens their pool of buyers. What’s different is that it’s now discussed openly, in writing, at the start. As a buyer, you can ask the seller to pay your agent as part of your offer. As a seller, you decide whether offering it helps your sale.

What about MLS fees?

People sometimes search for “MLS fees” expecting to see a charge on their closing statement. Here’s how it actually works in Marin in 2026.

  • What the MLS is. The Multiple Listing Service is the shared database agents use to list and find homes. In Marin, and much of the North Bay, it’s BAREIS MLS.
  • Who pays MLS fees. Agents and brokers do. BAREIS bills its members quarterly subscription dues. Sellers and buyers don’t pay MLS fees directly; it’s part of an agent’s cost of doing business.
  • What changed in 2024. Since August 17, 2024, offers of compensation to a buyer’s agent can’t appear in the MLS. A seller can still offer to pay the buyer’s agent, but it’s arranged outside the MLS, and buyers now sign a written agreement with their agent before touring homes.
  • “Flat-fee MLS” listings. Some companies will put a home in the MLS for a flat fee, and then the seller handles pricing, marketing, showings and negotiation. In Marin, the seller also has to manage the city resale report, sewer lateral and fire inspections on their own, and that’s where much of the work is.

What I tell sellers

Think about your net, not just the fee. A well-prepared, well-priced, well-marketed home almost always nets more than a discount listing that sits. That’s where I focus: preparation, pricing and marketing.

What I tell buyers

Read the agreement before you sign it, and ask about the length, the fee and what happens if the seller covers some or all of it. I’m happy to walk you through mine before we tour a single home. Also see: Do you need a buyer’s agent in Marin?

Frequently asked questions

Who pays the realtor fees in California?

It depends on what’s negotiated. The seller typically pays the listing agent. The buyer’s agent is paid according to the buyer’s written agreement, and the buyer can ask the seller to cover that fee as part of the offer.

Are realtor commissions fixed by law in California?

No. Real estate commissions are fully negotiable, and California listing agreements must state that the amount or rate is not fixed by law.

Do I have to sign an agreement before touring homes?

Yes, when working with a REALTOR®. Since August 17, 2024, buyers sign a written agreement before touring a home, in person or virtually, and it must state the agent’s compensation clearly.

Can a seller still pay the buyer’s agent?

Yes. Offers of compensation can’t be advertised on the MLS anymore, but a seller can still agree to pay the buyer’s agent or offer buyer concessions.

Do sellers pay MLS fees in California?

Not directly. MLS fees are subscription dues paid by agents and brokers; in Marin the MLS is BAREIS, which bills its members quarterly. What sellers pay is the commission they negotiate with their listing agent, and sometimes compensation to the buyer’s agent, which since August 2024 is arranged outside the MLS.

This page is general information, not legal advice. For your specific situation, talk with a real estate attorney.

Sources

Questions about fees?

Send me a note through my contact form. I’ll explain exactly how I work and what it costs, before you commit to anything.