The change comes after a $418 million settlement that changes how agents get paid.
"Traditionally agents are paid through sellers," Ryan Gainer with Realty Concepts said. "We sign a listing, 5%, 6%, we split it down the middle, we offer compensation for the agent who brings a buyer."
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He says now, that compensation to the buyer's agent is now negotiable.
"Because of the lawsuit and the settlement, we are no longer able to advertise through the multiple listing service what we are offering as compensation," Gainer said.
Gainer says the buyer's agent compensation could still be advertised on home buying sites like Zillow.
He adds, this new rule is just extra paperwork for agents in California.
"The lawsuit was brought on by people who already sold their homes. They've already benefited from the massive amounts of increase in equity and their home's values, they closed, and then somewhere, somehow somebody found a class action loophole in some of the paperwork that some of these other states were doing," Gainer said.
Gainer believes this won't drop home prices. He says people will just need to lean on their agent to take care of the process.
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