By Jeff Merrill | September 20, 2026

Do you have to sign a buyer agency agreement in Sioux Falls?

Yes. Since August 17, 2024, an agent who uses the MLS has to sign a written buyer agency agreement with you before touring a listed home, in person or by live video. In South Dakota that usually means signing the Real Estate Relationships Disclosure first, then the Agency Agreement – Purchaser. The agreement is required, but the terms are yours to negotiate — you can keep it short, non-exclusive, or tied to a single house until you’re sure of the fit.

This is one of the most common questions Sioux Falls buyers are asking right now, and most of the anxiety comes from a misunderstanding. People hear “you have to sign something before you can look at a house” and assume they’re locked into a six-month contract with a stranger. That’s not what the rule requires.

Here’s the honest version. A written buyer agreement is now required, but almost everything inside it is negotiable — the length, the fee, and whether you’re tied to one agent or free to walk. Understand those three levers and the paperwork stops feeling like a trap and starts working for you.

What changed, and why you’re being handed paperwork

On August 17, 2024, a national settlement involving the National Association of Realtors changed how buyers and agents start working together. The core rule is straightforward: an agent who uses the MLS has to enter a written agreement with you before touring a home, and that includes both in-person showings and live virtual tours.

The point of the rule is transparency. Before you spend a Saturday driving around Harrisburg and Tea with an agent, you’re supposed to know in writing what that agent will do for you and what it costs. That’s a reasonable thing to know up front.

A few things the rule does not do:

  • It doesn’t force you to use one agent forever.
  • It doesn’t set the fee — commissions have always been negotiable, and the agreement has to say so in plain language.
  • It doesn’t apply to a public open house. You can walk into any open house in McKennan Park or West Sioux Falls, look around, and talk to the agent on duty without signing a thing.

So the trigger is narrow: it kicks in when you want a specific agent to show you a specific listed home. That’s the moment the paperwork comes out.

The two documents you’ll see in South Dakota

South Dakota handles this with two separate forms, and buyers often confuse them. They do different jobs.

1. The Real Estate Relationships Disclosure. This one isn’t a contract. It’s an information sheet the agent has to give you early, explaining the types of relationships a firm can offer. You sign it to confirm you received it and understand your options — not to hire anyone. Think of it as the menu, not the order.

2. The Agency Agreement – Purchaser. This is the actual buyer agency agreement — the contract. It creates a working relationship between you and the brokerage, spells out the kind of property you’re looking for, sets the length of the agreement, and states how your agent gets paid. This is the document the August 2024 rule requires before a showing.

Signing the disclosure is routine. The agreement is where you should slow down and read, because that’s where the terms that matter live.

Know your agency options before you pick one

The relationships disclosure exists because South Dakota lets a firm represent you in a few different ways. Knowing the difference tells you how hard your agent is allowed to fight for you.

  • Single agency — the firm and its agents represent only you and advocate only for your interests. This is full representation, and it’s what most buyers want.
  • Appointed agency — the responsible broker names a specific agent to represent only you, while other agents at the same firm don’t represent you. You still get a dedicated advocate.
  • Limited agency — the firm represents both you and the seller in the same deal, so no single agent advocates only for you. This can only happen with written permission from both sides, and the agent has to treat both parties equally and keep your confidential information private. It comes up most often when you want a home your own brokerage has listed.
  • Transaction broker — the agent represents neither side as a fiduciary and just helps the deal move along, treating both parties on the same level.

None of these is automatically wrong, but they’re not the same. If having someone in your corner on price and strategy matters to you — and for most buyers it should — you want single or appointed agency, and your buyer agreement should reflect that.

The three levers you can actually negotiate

Here’s what I tell every buyer who’s nervous about signing. The agreement is required, but you control the terms. Focus on three things.

Length. The agreement doesn’t have to run six months. You can write it for a single property, a single day, or a short window like 30 days. A single-property or short-term agreement is a fair way to tour a home with an agent you’re still evaluating. If the fit is good, you extend it. If it’s not, you’re not stuck.

Exclusivity. An exclusive agreement means you work with that agent for any home you buy in the term. A non-exclusive one leaves you free to work with others. Non-exclusive gives you more freedom; exclusive usually earns you more of an agent’s time and effort. Pick with your eyes open, and don’t sign a long exclusive with someone you met an hour ago.

Compensation. The fee has to be a specific number — a dollar amount or a percentage, not a vague “market rate.” On the Sioux Falls metro median near $345,000, a 2.5 to 3 percent buyer-agent fee runs roughly $8,600 to $10,300, so the number in that box is real money. The agreement should say your agent will first seek that fee from the seller or listing broker, which is still how most deals here work. You’re on the hook only for any gap between what the seller offers and what your agreement states — one more reason to read the number before you initial it.

Who ultimately pays the buyer’s agent is its own topic, and I break down the current Sioux Falls picture in my post on whether buyers pay their agent in Sioux Falls. Read that alongside this one before you sign anything.

A trap worth naming: new construction

If you’re touring new builds in Tea, Harrisburg, or the northwest corridor, understand who the on-site sales rep works for. That friendly person in the model home represents the builder, not you. They’re paid to sell the builder’s homes at the builder’s terms.

Your buyer agreement is what puts someone on your side of that table — to compare the base price against upgrades, read the builder’s contract, and push on incentives. Most builders here still pay a buyer’s agent, but you generally have to bring that agent on your first visit, before you register with the sales office. I walk through the details in my guide on using a Realtor for new construction in Sioux Falls.

What to do if it’s not working

Signing a buyer agreement isn’t a life sentence. Before you sign, ask two questions: how long is the term, and how do I cancel? A good agent will give you clear answers and often a short term or a written cancellation clause without being asked.

If a relationship goes sideways later, put your request to cancel in writing and talk with the firm’s responsible broker. The broker can release you even when an individual agent is reluctant. And if a contract question feels genuinely legal rather than practical, you can always have a South Dakota real estate attorney review the language — this is a written contract, and you’re allowed to understand it fully before you commit.

Frequently asked questions

Do I have to sign a buyer agency agreement to see a house in Sioux Falls?
Yes, if you want an agent to tour a listed home with you. Since August 17, 2024, an agent who uses the MLS has to sign a written buyer agreement with you before that first showing, in person or by live video. You do not need one to attend a public open house or to ask an agent about their services.

What has to be in a South Dakota buyer agency agreement?
It has to state the agent’s compensation as a specific dollar amount or percentage, the length of the agreement, and whether the relationship is exclusive. It also has to include a clear note that real estate fees aren’t set by law and are always negotiable. In South Dakota you’ll usually sign the Real Estate Relationships Disclosure first, then the Agency Agreement – Purchaser.

Can I sign a buyer agreement for just one house?
Yes. A buyer agreement can be written for a single property, a single day, or a short window like 30 days instead of a six-month exclusive. A single-property or short-term agreement is a reasonable way to tour a home with an agent you’re still getting to know before committing long term.

Does signing mean I have to pay my agent out of pocket?
Not usually. In most Sioux Falls deals the seller still offers to cover the buyer’s agent, and your agreement can say your agent will first seek that fee from the seller or listing broker. You’re responsible only for any gap between what the seller offers and the fee in your agreement, so that number matters.

How do I get out of a buyer agency agreement?
Read the term and cancellation language before you sign, and ask for a short term or a written cancellation clause up front. If the relationship isn’t working, put your request in writing and talk with the responsible broker, who can end the agreement even when an individual agent won’t.

Not sure what you’re being asked to sign?

A buyer agreement should protect you, not corner you. Before you initial anything, it’s worth understanding the term, the fee, and whether you’re locked in — and I’m glad to walk you through a copy line by line, no pressure to work with me attached.

Call or text me at 605-201-2846, or reach out through siouxfallsgreathomes.wordpress.com. Let’s make sure the paperwork works for you before you sign it.

About Jeff Merrill: Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Brandon, Harrisburg, Tea, Madison, Mitchell, Canistota, and beyond. Jeff helps buyers, sellers, and new agents cut through the hype in real estate with honest guidance and a track record of real results. Reach him at 605-201-2846.