You have found a new condominium that deserves a closer look. The floor plan works, the finishes appeal to you, and the sales gallery is ready to schedule a visit. Then your agent asks you to sign a buyer representation agreement.
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If the developer already has a sales team—and might pay your broker—why is another agreement necessary?
**Buyer representation agreements at NYC new developments clarify who works for you, what services you receive, and how your broker will be compensated.** The developer’s commission arrangements and registration procedures address separate parts of the transaction.
Understanding those distinctions before your first appointment can help you make decisions with a clearer budget and fewer surprises.
New development does not create a blanket exemption
The Real Estate Board of New York’s Residential Listing Service, or **REBNY RLS**, has required buyer broker representation agreements for RLS transactions since **January 13, 2025**. REBNY’s guidance specifically includes brokers representing purchasers of new development properties. Its published reminder requires the agreement before showings. [Rebny]
This is a rule within the RLS framework. Buyers should ask their broker which listing-service requirements and brokerage policies apply to their search rather than assume every NYC transaction follows an identical process.
**A sponsor’s willingness to compensate your broker does not replace the agreement between you and that broker.**
That agreement is where you establish your working relationship. A separate arrangement addresses whether, and on what conditions, the sponsor will pay.
The sales team and your agent have different roles
A sponsor is the developer or selling entity offering the units. Its sales representatives can explain inventory, layouts, finishes, and the purchasing process. When acting as the seller’s agents, however, they represent the seller’s interests.
New York’s [agency disclosure form] explains that a buyer’s agent represents the buyer and owes duties that include loyalty, confidentiality, reasonable care, and disclosure. It also explains that dual agency requires informed written consent and limits the duties the agent can provide. Ask how agency works if both sides use the same brokerage. [1736.doc]
Professional courtesy from a sales team is valuable. Knowing who is responsible for advising you is equally valuable.
A useful question before discussing your negotiating position is: **“Whom do you represent in this transaction?”**
Three documents buyers should distinguish
Several forms can appear early in a new development search. Their purposes differ.
| Document | Main purpose | What to check |
|—|—|—|
| **Agency disclosure** | Explains the agency relationship and associated duties; the state form is not a contract. | Who represents whom, including any proposed dual agency. |
| **Buyer representation agreement** | Establishes the terms of your engagement with your brokerage. | Services, scope, duration, compensation, and termination provisions. |
| **Development registration or brokerage paperwork** | Documents the broker’s introduction of a prospect and the applicable sponsor-side brokerage arrangements. | Registration, attendance, and commission conditions. |
The state disclosure form does not substitute for your representation contract. Similarly, a sales-gallery registration should not be treated as a complete statement of your obligations to your own broker. [1736.doc]
Read each document for the question it actually answers. A signature on one form does not settle every issue addressed by another.
What to review in buyer representation agreements at NYC new developments
Treat the agreement as a conversation about the service you want and the commitment you are making.
REBNY’s buyer broker agreement checklist identifies subjects such as the term, property parameters, duties, compensation, and a possible protection period. A protection period can extend certain obligations beyond the agreement’s expiration, depending on its wording. [assets.ctfassets.net]
Review these points:
– **Coverage:** Does the agreement cover one building, specified properties, or a broader search?
– **Duration:** When does it begin and end? What happens if construction or closing takes longer than expected?
– **Exclusivity:** Can you work with other brokers, and within what limits?
– **Services:** What help will you receive with comparisons, appointments, offers, and transaction coordination?
– **Exit provisions:** How can the relationship end, and which obligations might survive?
REBNY’s representation agreement FAQs explain that there is no single standard agreement and that arrangements can be exclusive or nonexclusive. Do not assume another brokerage’s form has the same terms. [assets.ctfassets.net]
For a new development buyer, the timing question deserves particular attention. Ask how the agreement handles a property introduced during its term if the purchase contract or closing occurs later.
Who pays the buyer’s broker?
**Broker compensation is negotiable.** A developer’s offer of payment should be confirmed rather than assumed.
Under REBNY’s published requirements, compensation must be objectively ascertainable, and the agreement must prevent the broker from receiving more than the agreed amount or rate from any source. [Rebny]
The practical question for your budget is whether you could owe a shortfall.
A hypothetical example
Assume the following terms solely for illustration:
– Your agreement sets a **$30,000 total brokerage fee** for the purchase.
– The sponsor agrees to contribute **$20,000** toward that fee.
– Your agreement makes you responsible for any unpaid balance, with no other credit or amendment.
Under those assumptions, your remaining obligation would be **$10,000**.
These figures are invented to explain the calculation. They are not suggested fees or a statement of market practice.
Before making an offer, ask for written clarification of the total agreed fee, the sponsor’s contribution and its conditions, and your remaining responsibility. Any negotiated change should be properly documented.
National Association of REALTORS® guidance also cautions against changing an agreement solely to capture a higher compensation offer; amendments require a legitimate basis and an informed buyer’s agreement. [nar.realtor]
Why registration still deserves attention in 2026
REBNY’s **Residential Universal New Development Brokerage Agreement**, commonly called the **RUNDBA**, addresses brokerage arrangements for new development transactions.
Its [2026 update] removed the prior requirement that a prospect sign a purchase agreement within 60 days of registration for the outside broker to earn a commission.
The update also identifies circumstances that can disqualify a broker from commission, including specified changes in representation and repeated visits without a broker before an offer or purchase agreement. The applicable agreement and facts matter. [Rebny]
The practical recommendation is straightforward: **coordinate visits with your agent and have the development’s current registration and attendance requirements confirmed.**
Already visited on your own? Tell your agent when you visited, what you signed, and whether you named a broker. Those facts should be reviewed before anyone promises that the sponsor will recognize the brokerage relationship or pay compensation.
An unrepresented buyer can attend a seller-hosted open house without hiring that listing agent as a buyer’s representative, according to REBNY’s FAQs. That permission does not resolve separate registration or compensation questions when another broker becomes involved. [assets.ctfassets.net]
What useful representation should help you evaluate
The agreement should support a service you understand and value.
For a new development purchase, consider asking your agent to help you organize:
– **Property comparisons:** How does this unit compare with realistic alternatives in layout, price, carrying costs, and usable space?
– **Offer priorities:** Which terms matter most to you—price, timing, or requested concessions?
– **Budget questions:** Which costs need written confirmation from the sponsor, attorney, or lender?
– **Open issues:** What remains unanswered before you are ready to proceed?
For example, request a complete closing-cost estimate rather than focus only on the advertised purchase price. The Attorney General’s published condominium offering-plan regulations address disclosure of closing costs and whether the purchaser or sponsor bears them. Have your attorney identify the charges applicable to your particular purchase. [13 NYCRR § 20.3.doc]
Representation has limits. An agent cannot guarantee a concession, a construction completion date, financing approval, or future resale value.
The offering plan still needs its own review
A buyer’s broker does not replace your attorney or a qualified inspection professional.
The [New York Attorney General recommends] reading the entire offering plan and consulting an attorney before signing a purchase agreement. Its guidance emphasizes checking the sponsor’s written obligations rather than relying on renderings, brochures, or verbal promises. Material promises missing from the documents should be addressed in writing. [New York Attorney General]
If a particular amenity, finish, or feature drives your decision, flag it for your attorney. Ask what the documents require and what flexibility the sponsor retains.
A beautiful rendering can start the conversation. It cannot answer every contractual question.
Syd’s Field Note: connect the paperwork before the tour
**Practical recommendation:** Ask your agent to confirm how three things fit together: your representation agreement, the development’s registration procedures, and the proposed compensation arrangement.
This coordination can reveal a question while there is still time to resolve it. For example, does your agreement cover the building you found independently? Has the sponsor acknowledged your broker? Is its contribution sufficient under your agreement?
The benefit is a search in which everyone understands the working relationship before negotiations become serious.
Five steps before your next sales-gallery appointment
1. **Review existing commitments.** Identify any active representation agreement before engaging another broker.
2. **Discuss the proposed service and terms.** Clarify coverage, duration, exclusivity, compensation, and exit provisions.
3. **Coordinate registration and visits.** Disclose previous contact with the development and confirm its current procedures.
4. **Establish your potential brokerage cost.** Obtain written clarification of any sponsor contribution and possible shortfall.
5. **Assemble the right review team.** Engage an attorney familiar with sponsor purchases and consult your lender and appropriate inspection professionals.
You should be able to enjoy discovering a new home while understanding the commitments involved in buying it.
If you are considering a NYC new development, contact **Sydney Harewood** to discuss your search, representation options, and the questions to resolve before your first appointment.
**Sydney Harewood**
Licensed Real Estate Salesperson · FIND Real Estate
[646-535-3819](tel:6465353819) · [[email protected]]
[NYC Exclusive Apartments]
*Your Premier Bridge to Manhattan Living & Wealth.*
Sources and further reading
Sources reviewed October 30, 2026.
– [REBNY: 2025 UCBA Changes] — February 11, 2025.
– [New York Department of State: Buyer and Seller Agency Disclosure Form].
– [REBNY: Buyer’s Broker Agreement Checklist] — dated December 28, 2023; read alongside subsequent RLS requirements.
– [REBNY: Buyer’s Broker Representation Agreements FAQs].
– [NAR: Dos and Don’ts When Working With Buyers].
– [REBNY: 2026 UCBA Changes] — December 15, 2025; [REBNY’s compliance page] identifies January 20, 2026 as the effective date of the revisions.
– [New York Attorney General: Published 13 NYCRR §20.3] — subsection (s), Unit Closing Costs and Adjustments; agency-hosted unofficial version.
– [New York Attorney General: Before You Buy a Co-op or Condo].
*This article provides general consumer education. Your obligations depend on the agreements you sign and the applicable rules and law. Consult a New York real estate attorney about your specific transaction.*
We hope you found this information helpful. If you have any other questions or need more details, feel free to contact us.
