What The NAR Settlement Means To Home Buyers and Sellers

On March 15, The National Association of REALTORS® (NAR) came to an agreement with plaintiffs that, upon court approval, would resolve litigation surrounding claims made by home sellers regarding broker commissions. This Settlement not only introduces modifications to real estate transactions but also ensures that consumers retain the freedom to choose real estate services. These new practices will take effect on August 17, 2024:

Real estate agents listing properties on a Multiple Listing Service (MLS) must now establish written agreements with buyers before showing a home. These agreements should include:

- A clear and prominent disclosure of the compensation amount or rate the agent will receive or how it will be determined.

- Objective compensation terms (e.g., $0, X flat fee, X percent, X hourly rate) rather than open-ended ones.

- A clause preventing the agent from receiving compensation exceeding the agreed-upon amount from any source.

- An explicit statement emphasizing that broker fees and commissions are negotiable and not dictated by law.

NAR Settlement Docs (1)

NAR has consistently advocated for written agreements between members and buyers to ensure transparency regarding services, roles, responsibilities, and costs. Many states already mandate buyer agreements for this reason. Additionally, there have been adjustments to how and where real estate professionals can discuss compensation offers. These discussions are now prohibited on MLS platforms, although sellers can still provide compensation off the MLS and offer buyer concessions on the platform.

NAR Settlement Docs

Key points for home buyers and sellers:

- Buyers working with agents utilizing an MLS must sign a written agreement before viewing a property to understand the services provided and associated costs.

- Written agreements are mandatory for both in-person and virtual home tours.

- No written agreement is needed for casual interactions at open houses or inquiries about services.

- Agent compensation for buyers and sellers remains negotiable.

- When selecting an agent, inquire about their services, compensation structure, and the necessity of written agreements.

- For more information on these changes and their implications, visit competition.realtor.

Tags:

Buyers, #realestate, #homesnorthofboston, First time home seller, For Sellers, for buyers, NAR Settlement, NAR

Post by Laurie Williamson
Aug 21, 2024 10:52:00 AM

Meet Laurie Williamson, a seasoned professional in the residential real estate domain, boasting an impressive 20-year career. As a distinguished team leader, her reputation extends beyond adept negotiation skills; she is celebrated for her exceptional leadership and organizational prowess, ensuring that transactions unfold seamlessly under her guidance.