She tried to fire her real estate agent. It was the start of a nightmare. - Business Insider

What the report says

Business Insider reports that new buyer-agent paperwork in the U.S. housing market is leaving some home shoppers locked into relationships they later regret. The story centers on Kirsten Ganas and her partner, Austin McCarley, who were searching for a larger home in southwest Pennsylvania after learning they were expecting another child. After deciding in March to stop working with agent Dan Waterhouse, Ganas said they discovered a document signed before their first tour had made their relationship with his brokerage exclusive for a year.

According to Business Insider, the agreement meant they could remain tied to the brokerage until January 2027 unless they paid an early termination fee or another brokerage agreed to pay a referral fee. The article says that if they bought a home before then, even without an agent, they could still owe the agreed commission: a $995 flat charge plus a percentage of the sale price.

The broader issue stems from the 2024 settlement involving the National Association of Realtors after litigation over broker commissions. One major rule change requires most agents to have written agreements with buyers before touring homes. The goal was to make compensation and representation terms clearer, but Business Insider reports that contract length, exclusivity and fees can vary widely, from brief touring agreements to yearlong exclusive arrangements.

Consumer advocates quoted by the outlet said many buyers are encountering these contracts for the first time and may not understand dense legal language before signing. Supporters of written agreements say buyers and brokers should know the terms upfront; critics warn that presenting binding documents at the start of a tour can trap consumers before trust has been established.