Due to a recent court approved settlement involving real estate brokerages and the National Association or REALTORS® (NAR), significant changes took effect on August 17, 2024.
These Changes Include:
- Written Agreements with Buyers: Buyers will be required to sign agreements with their agents before touring homes. These agreements must disclose the agent’s compensation, which must be specific and not open-ended. The agreements must also clearly state that the broker fees are negotiable and not set by law.
- Changes to Compensation Offers: Offers of compensation can no longer be communicated through the MLS facilities and may still be made through other means like social media or websites. Sellers may continue to offer compensation to buyer brokers as part of the concessions a seller may elect to offer to entice buyers to make an offer on their homes.
- Consumer Choices and Negotiability: Consumers still have choices in real estate services, and agent compensation remains fully negotiable. REALTORS® are committed to working in their clients’ best interests.
For Home Buyers:
- Before touring a home, you must sign a written agreement with your agent outlining the services and compensation terms outlining the respective responsibilities of both the REALTOR® and you.
- There will not be an offer to pay your agents compensation in the MLS listing. Sellers can offer concessions, such as paying for buyer closing costs and paying broker compensation, but these offers cannot be listed on the MLS.
For Home Sellers:
- You can still offer compensation to buyer brokers, disclosed and approved in writing before payment.
- This compensation can no longer be listed on MLS but can be communicated through other channels.
What Remains Unchanged:
REALTORS® are real estate licensees who have agreed to subscribe to a high standard of ethics. The REALTOR® code of Ethics ensures that agents maintain transparency and prioritize their clients’ best interests. REALTORS® will continue to provide valuable services, guiding clients through buying and selling homes.
If you have any questions or would like to know how this may affect you and your restate needs, feel free to contact me 949.529.8787 or [email protected].
