California Agents Must Choose Between Two Distinct Buyer Agreement Forms
Since California Assembly Bill 2992 (AB 2992) took effect on January 1, 2025, every agent in the state must secure a written buyer representation agreement before or within three business days of the first property tour. The two primary forms agents use to satisfy this requirement are the BRBC (Buyer Representation and Broker Compensation Agreement) and the PSRA (Property Showing Agreement). Choosing the wrong form creates compliance risk, limits your ability to serve the client, and can void your right to compensation. This article breaks down exactly when to use each form and what the law requires.
What the BRBC Covers: Full Representation
The BRBC is California's standard form for establishing a full buyer representation relationship. When a buyer signs a BRBC, the agent owes comprehensive duties including property research, negotiation strategy, offer preparation, and guidance through closing. This is the form you use when a buyer is serious about purchasing and wants your expertise throughout the entire transaction.
Under AB 2992, the BRBC for individual buyers is capped at a maximum term of 90 days. Any BRBC that exceeds 90 days for an individual buyer is void and unenforceable under California Civil Code Section 1670.50(d)(2). No auto-renewal language is permitted. If you need to continue representation beyond 90 days, the buyer must sign a new agreement.
Corporate and entity buyers are exempt from the 90-day cap. If your client is an LLC, trust, or corporation purchasing property, you may set a longer term in the BRBC without triggering the voiding provision.
Mandatory Clauses in the BRBC
The NAR settlement, effective August 17, 2024, requires four mandatory clauses in all buyer representation agreements, including the BRBC:
- Exact compensation amount — a specific dollar figure or percentage, not open-ended language
- Source neutrality — compensation may come from the buyer, seller, or another source
- Negotiability disclosure — stated in conspicuous text that compensation is fully negotiable
- Specific services listed — an itemized description of what the agent will do for the buyer
California law adds further requirements. Under California Business and Professions Code Section 10147.5, every BRBC must include a compensation negotiability disclosure. Additionally, California Civil Code Section 2079.14 requires that an Agency Disclosure form acknowledgment be included in the agreement. Missing either of these state-specific requirements exposes you to disciplinary action.
What the PSRA Covers: Showing Only
The PSRA (Property Showing Agreement) is a limited-scope form restricted to property showings. It does not establish a full representation relationship. When a buyer signs a PSRA, the agent's obligation begins and ends with facilitating access to a specific property or properties — no negotiation advice, no offer strategy, no fiduciary guidance.
Use the PSRA when a prospective buyer wants to tour a property but is not yet ready to commit to a full representation relationship. This is common at open houses, initial consultations, or when a buyer contacts you about a single listing. The PSRA satisfies the written agreement requirement under AB 2992 without locking you or the buyer into a broader commitment.
Because the PSRA is not a full representation agreement, you must be careful about scope creep. If a buyer who has only signed a PSRA asks you to draft an offer or advise on pricing, you need to stop and execute a BRBC first. Providing representation-level services under a showing-only agreement creates liability and may constitute practicing outside your agreed scope.
BRBC vs PSRA: Side-by-Side Comparison
Scope of Services
The BRBC authorizes full representation: property searches, market analysis, offer preparation, negotiation, inspection coordination, and closing support. The PSRA authorizes showings only — physically touring properties with the buyer. If the buyer wants anything beyond access to a property, the BRBC is the correct form.
Duration and Term Limits
The BRBC has a hard cap of 90 days for individual buyers under California Civil Code Section 1670.50(d)(2). Agreements exceeding this limit are void — not voidable, void. The PSRA is typically property-specific or limited to a short defined period. Neither form may include auto-renewal language for individual buyers.
Compensation Structure
Both forms must state an exact compensation amount per the NAR settlement requirements. However, the compensation context differs significantly. In a BRBC, compensation covers the full suite of representation services. In a PSRA, compensation — if any — covers only the showing. Many agents use the PSRA at no charge to the buyer as a lead qualification tool, then transition to a BRBC when the buyer is ready to make offers.
Agency Disclosure Requirements
The BRBC must include an Agency Disclosure form acknowledgment per California Civil Code Section 2079.14. The PSRA, because it does not establish a full agency relationship, has a different disclosure profile. Regardless of which form you use, the compensation negotiability disclosure required by California Business and Professions Code Section 10147.5 must be present.
When to Use Each Form: Practical Scenarios
Scenario 1: Buyer Contacts You About a Specific Listing
A buyer finds a listing online and wants to see it tomorrow. You have no existing relationship. Use the PSRA. It gets you compliant with AB 2992's written agreement requirement before the tour without overcommitting either party. If the buyer loves the property and wants to write an offer, transition to a BRBC before providing any representation services.
Scenario 2: Buyer Wants to Start a Home Search
A buyer sits down with you for a consultation and says they want to find a home in the next 60 days. Use the BRBC. Set the term at 60 or 90 days maximum. List every service you will provide. Specify your exact compensation. This is a committed buyer who needs full representation from day one.
Scenario 3: Open House Visitor Wants a Private Showing
A visitor at your open house asks to see a different property next week. Use the PSRA for that showing. You are not yet in a representation relationship, and the buyer may be working with another agent. The PSRA protects both parties while keeping you compliant.
The Transition from PSRA to BRBC
The most common workflow in California right now is PSRA first, BRBC second. You meet a prospective buyer, execute the PSRA for initial showings, and then convert to a BRBC when the buyer decides to move forward with you as their representative. This transition must happen before you provide any advice, draft any offers, or negotiate on the buyer's behalf.
Document the transition clearly. The BRBC should reference that it supersedes any prior PSRA. Ensure the BRBC includes all four NAR-mandated clauses, the Agency Disclosure acknowledgment under Civil Code Section 2079.14, and the negotiability disclosure under Business and Professions Code Section 10147.5. A clean transition protects your commission and your license.
Compliance Risks of Using the Wrong Form
Using a PSRA when you are actually providing full representation is a compliance violation. You are performing services outside the scope of your written agreement, which exposes you to claims of unauthorized practice and potential loss of compensation. Conversely, requiring a BRBC from every buyer before a first showing can deter leads and is not legally necessary — the PSRA exists for exactly this purpose.
The most dangerous mistake is having no written agreement at all. AB 2992 requires a signed buyer agreement within three business days of the first property tour. Failing to secure either a BRBC or PSRA within that window puts your license and your compensation at risk. There is no grace period and no informal workaround.
Bottom Line: Match the Form to the Relationship
The rule is straightforward. If the buyer wants representation, use the BRBC. If the buyer wants to see a property, use the PSRA. Never provide BRBC-level services under a PSRA. Never let a BRBC exceed 90 days for an individual buyer. And never show a property without one of these two forms signed. California's post-settlement compliance framework gives you the tools — use the right one for the right situation.