Preparing you for Industry Changes
For months, we’ve been talking about changes coming to the real estate industry as the result of a national settlement agreement related to broker commissions.
That time is finally upon us.
Starting no later than Aug. 17, there are two important changes related to how we conduct our business.
First, offers of compensation will be prohibited from appearing on Multiple Listing Services (MLSs).
It’s important to understand that home sellers and brokers may still offer compensation off MLSs. Compensation can include a range of options, including a fixed-fee commission paid directly by consumers, concessions from the seller such as buyer closing costs, or a portion of the listing broker’s compensation.
What doesn’t change is that commissions and fees have been and continue to be negotiable.
The second change will require that agents working with a buyer enter into a written agreement before touring a home. The agreement must clearly and specifically set out the amount or rate of compensation. The written agreement requirement does not require any type of professional relationship between real estate professionals and buyers.
Change can be tough, but these new rules help move our industry in a positive direction. They raise the bar on transparency and fairness, and they emphasize the importance of clear, negotiated agreements that protect both agents and buyers.
Another thing that won’t change per this agreement? REALTORS® will continue to provide invaluable services, guiding clients through complex and emotional transactions with expertise and dedication.
REALTORS® have been and will always remain committed to offering exceptional service and building trusted relationships with the buyers and sellers we work with, and now with even clearer guidelines to support us.
VISIT FACTS.REALTOR FOR ADDITIONAL RESOURCES AND ANSWERS TO FREQUENTLY ASKED QUESTIONS. THE INFORMATION PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT A SUBSTITUTE FOR LEGAL ADVICE OR FOR THE TERMS OF THE NAR SETTLEMENT ITSELF. PLEASE CONSULT YOUR LEGAL COUNSEL.
