• ⚠️ Commission lawsuits may increase as buyer agency agreements become more common post-NAR settlement.
• 💼 "Procuring cause" is an important legal standard agents must meet to show they earned a commission.
• 🛑 Suing a buyer is legal but rare—agents risk damaging their reputation more than gaining compensation.
• 🧾 New construction home sales in cities like Las Vegas are a major source of real estate agent disputes.
• 🤝 Strong documentation and buyer education are better tools than litigation in protecting commissions.

The real estate world is seeing big changes. Because of the National Association of Realtors’ (NAR) $418 million settlement, the old way of sharing commissions between buyer and seller agents is changing completely. This is affecting places all over the country, especially in busy markets like Las Vegas. Now, real estate agents are using buyer agency agreements (BAAs) more to protect their commissions. But buyers often go around agents, sometimes without knowing it. So, people are asking: Can agents sue buyers for breaking these agreements? And should they? This explains what every agent needs to know now.

What Is a Buyer Agency Agreement—And Why It Matters?

A buyer agency agreement is a legal contract between a homebuyer and their chosen real estate agent. The contract says what the agent must do, explains what the buyer should do, and shows how the agent gets paid. This is usually with a percentage of the sale price. The seller might cover this, but more often now, the buyer does.

There are different types of BAAs:

• Exclusive Buyer Agency Agreement: This ties the buyer to one agent only. That agent earns a commission no matter who finds the property.
• Non-Exclusive Right-to-Represent Agreement: The buyer can work with many agents, but only the agent who is the procuring cause gets the commission.
• Non-Exclusive/Not-for-Compensation Agreement: This agreement gives advice and help, but the agent might not get paid by law.

After the NAR settlement, buyer agency agreements are now very important, not just a formality. Many Multiple Listing Services (MLSs) and brokerages are stopping shared commissions from sellers. Because of this, these papers are the main way agents can get paid directly by their buyer clients.

In a very competitive housing market like Las Vegas, agents spend much time scheduling showings, looking up listings, and keeping up with clients. This can be a lot of work with no pay. So, agents depend more on exclusive BAAs to make sure they get paid for what they do.

How the NAR Settlement Changed Everything

The recent NAR settlement completely changes how commissions work in real estate deals. Before, the seller paid both the listing and buyer agents, so buyers got agent help for "free." But lawsuits claimed this made costs higher and cut down competition. This led to government checks and lawsuits in many states.

Under the new rules:

• MLSs cannot list commission offers from sellers automatically anymore.
• Agents must clearly get agreements for pay, often through BAAs, before working for a buyer.
• Buyers may now need to pay some or all of their agent’s commission. This makes many wonder if an agent is worth it, or they avoid agents completely.

So, agents who once counted on agents working together automatically now have to teach buyers about their value and get it in a contract. If they skip this important step, they might not get paid, even after doing most of the work.

Real Estate Agents Are Being Cut Out

Even though they sign buyer agency agreements, some buyers still cut agents out of the deal. They do this for money. Often, buyers go directly to new home builders or directly contact the listing agent. In these cases, builders might offer “closing credits,” reduced fees, or other good deals to get buyers who come without agents.

You see this a lot in fast-growing areas like Summerlin, Henderson, and Southern Highlands. These are places where many new homes are being built in Las Vegas.

“Many Las Vegas builders really encourage buyers to come directly to them,” Steve Hawks, a Las Vegas broker, notes. “They offer ‘closing credits’ that go away if a buyer brings an agent. So some buyers just leave us out.”

These deals might seem like simple discounts to buyers. But for agents who showed those buyers the development, set up visits, or even talked about early interest, being cut out feels like a broken trust.

What Is Procuring Cause—And Why It Matters A Lot?

In real estate arguments, one term comes up most often: procuring cause.

Procuring cause refers to the steps that directly led to a sale. To get paid in an argument, an agent must prove their actions started those steps and were key to the final sale.

Actions that can show procuring cause:

• Showing the property to the buyer for the first time.
• Introducing the buyer to the builder or listing agent.
• Keeping up important and regular talks that led to the sale.
• Giving advice or talking about key parts of the purchase.

“If a buyer met with a builder directly online, and the agent had no contact with the builder, it’s tough to claim procuring cause,” says Marx Sterbcow, attorney from Sterbcow Law Group.

For new construction, builders often have good ways to track and register buyers. If an agent does not register their buyer properly or cannot prove they started their work, it's hard to claim procuring cause.

Why Procuring Cause Is Important for Law

Any lawsuit for breaking a buyer agency agreement will depend on clear proof of procuring cause. A court, a group deciding a dispute, or a real estate board will ask:

• Were you the reason the sale happened?
• Did you do your job well during the sale?
• Did the buyer break the agreement?

If you can’t prove procuring cause, your contract, even if it's very strong, might not get you paid.

Can Real Estate Agents Sue Buyers?

In most U.S. states, suing a buyer who signs a buyer agency agreement, and then buys through someone else, is allowed by law under contract breaking rules. The agreement works like any other business deal: break it, and the harmed party can try to get money.

But the harder question is: Should agents sue?

“I’d need months of effort and a big loss before I’d think about going to court,” said broker Mike Crowley of Spokane Home Buyers. “It’s not worth the possible harm to my reputation or business.”

Legal Ways Agents Can Pursue

If an agent takes legal action, they might get back:

• The originally agreed-upon commission
• Legal fees (if stated in the contract)
• Other fair costs linked to the broken agreement

In some states, agents have gone to extremes. They filed a mechanic’s lien on the property to stop the sale. This is something seen more often in Vermont and Arkansas, according to Charles Cain.

But these cases are still rare. Most agents prefer to be careful rather than argue in court.

The Reputation Risk of Lawsuits

Real estate is very much about relationships. A lawsuit, fair or not, can harm how people in the community feel about you. It can make clients turn away and even bring unwanted media attention. Jeremy Walker, CEO of the Alabama Association of Realtors, agrees with this:

“Suing a buyer might be right in court, but it often seems like punishment, which is bad for business.”

And it's not just about how it looks. Many agents fear that suing buyers could make clients trust them less or hurt their online reviews. With so many clients who come from recommendations, even one lawsuit that gets attention can put future earnings at risk.

Social Media Venting: A Risky Move

In Facebook groups, Reddit threads, and Discord communities, agents often share their bad experiences. They post screenshots showing when clients went against them and ask for legal help.

The immediate support and letting out frustration might feel good. But buyers and lawyers might be watching.

What you say online could:

• Be admissible in court
• Hurt the agent’s professional image
• Go against official papers or formal statements

Steve Hawks offers a straightforward tip: “Document privately. Venting publicly can cost you more than your commission.”

How Agents in Las Vegas Can Protect Commissions in Advance

Las Vegas’ market with many new homes brings special problems for buyer agents. But planning ahead can help cut down on losses.

Good Ways to Work for Buyers

1. Always get a signed buyer agency agreement before visiting any homes, old or new.
2. Register your clients with builders right away, best to do this in writing and with a time stamp.
3. Keep good files: Save texts, emails, history of talks, showing records, and pre-approval talks.
4. Teach buyers about how commissions work now. Many have no idea what they agree to, or what they might break.

Agents who show their worth clearly and often from the start are more likely to keep loyal clients who stick to their agreements.

Buyer Behavior Trends in Las Vegas

Steve Hawks points out different buyer behaviors:

• Investor Clients: These clients know more about contracts and how things work. They are less likely to act on their own.
• First-Time Homebuyers: These clients often don't know as much and are easier to convince by builder deals.

Teaching buyers is very important. If a client doesn’t understand the legal force of a BAA, they may break it without knowing. Explaining things early on is still key to getting paid and keeping good relationships.

Alternatives to Lawsuits: Better Ways to Handle Arguments

Instead of taking arguments to court, think about these safer alternatives that protect your name:

• 🔍 Mediation and Arbitration: Add parts that say arguments must be solved privately before going to court.
• 🏢 Brokerage or MLS Interventions: Many real estate boards have ways to solve commission arguments inside their groups.
• 📋 Check Buyers Carefully Beforehand: Use full sign-up forms, ask tough questions, and walk away from warning signs.
• 📚 Training and Skill Development: Put money into training for talking with people, negotiating, and keeping clients.

What’s Next for Buyer Agreements?

The NAR’s settlement makes the industry change. In the future:

• More states may make buyer agreements required.
• MLS rules will limit seller-paid buyer commissions even more.
• Agents will have to take on the job of proving their own value, most of all in busy markets.

As Charles Cain notes, legal ways are there. But they only work when supported by clear service and following the contract.

Trust Over Trials: The Right Path Forward

In the end, buying a home is a very emotional and complicated event. It needs a human touch. Clients trust their agents not just for legal knowledge, but also care, experience, and advice.

“I’m firm about protecting my commission,” says Steve Hawks. “But I never want to win in court if it hurts my name. Teach. Protect. And always be honest.”

In a time of big market change, Las Vegas agents, and agents anywhere, should focus on what has always worked: trust, clear talks, and working hard for their clients’ best interests.

Citations

Cain, C. (2024). In Arkansas and Vermont, buyer agent lawsuits over contract breaches have occurred, sometimes involving liens on homes. Alliance Solutions.

Crowley, M. (2024). Broker-owner opinions on buyer lawsuits indicate reluctance to litigate due to reputational risk. Spokane Home Buyers.

Sterbcow, M. (2024). Legal advice suggests "procuring cause" is key to determining enforceability of buyer agency claims. Sterbcow Law Group.

Walker, J. (2024). Alabama Association of Realtors reports no recorded lawsuits against buyers over contract breaches and emphasizes negative optics. Alabama Association of Realtors.