NAR has reached a settlement. What does this mean for us?
#1 We have been getting ready and talking about this for over a year now. We are ready. So remember that.
#2 This is happening faster than we ever thought it would so I am thankful we have been proactive in preparing you.
#3 THRIVE will be about this and masterminding all around this topic next week. Please come ready to contribute in a meaningful way and please be courteous. There can not be talking while others are talking and we will have to follow a formal format that will be laid out from the start so that the topic and your questions can be fully vetted.
#4 Take the FREE ABR course. Become an accredited Buyer's agent for free by taking the self paced online course if you plan to represent Buyers. Go here to sign up: https://become.abr.realtor/
Details that are going to be the most important to know:
Compensation to Buyer's Agents:
We will no longer be allowed to put offers of compensation to a buyer's agent in the MLS.
The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:
Fixed-fee commission paid directly by consumers
Concession from the seller
Portion of the listing broker’s compensation communicated off MLS
How we are REQUIRED work with Buyers:
The settlement provides that MLS participants working with buyers must enter into written representation agreements with those buyers.
This change will go into effect in mid-July 2024. Implications for members and home buyers and sellers.
After the new rule goes into effect: o MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home.
What does this mean? You will no longer be allowed to show a home unless you have a contract with a buyer starting July of this year.
Local Impact:
I am certain we will see a directive of how our local board will be handling this soon and I will make sure that we share updates as we have them. There are some obvious questions that are out there right now. I will share my list so far.
Will we need to have sellers sign something different if the home has been listed prior to when this will take effect. The directive states Listing brokers should inform their clients that offers of compensation would no longer be an option on an MLS so that will be something I am waiting on answers as to how we show we did that.
What new fields will we have to show the offer of concession to the buyers from the seller? The directive states a seller will now be allowed to offer concessions to a buyer to help them pay the Buyer's agent commissions so we will need to get more info on this from our local MLS providers.
How will offers of compensation from the Listing agent be known to the Buyer's agent without a listing agent having to hear the pitch of why every agent who wants to show this property should be paid by the Listing agent? The directive says that the listing agent can choose to offer commission to the buyer's agent but it must be off MLS. This is something we will need to have a clear understanding of the rules around this. It has potential to be messy.
Who will be policing the Buyer's agents agreement prior to allowing them to show a home? Will listing agents be expected to police this prior to allowing showings and/or will there be a specific process from the MLS provider to handle this?
Will there be exclusions and the rules around them?
How does this effect showing the home to a Buyer at an open house?
Previews of property
Listing agents showing Buyers their own listings
Please know I will be working to get these answers and have everything we need to continue to be a leading Brokerage in our local market. If you have specific questions you want me to try to get answered then please send me a response with those.
More info:
Original Press Release from NAR:
You can watch the video explaining the that NAR put out by going here:
Litigation Update from NAR President Kevin Sears and CLO Katie Johnson
I have attached a breakdown of the lawsuit and a FAQ sheet for you to read as well.
Comments