On August 17, 2024, two major changes resulting from the National Association of Realtors (NAR) settlement affects how agents representing buyers are paid.
- Properties listed in databases known as the multiple listing service (MLS) will no longer be allowed to include an offer of compensation to buyer’s agents.
- Homebuyers who want to work with an agent will need to sign a written agreement with that agent prior to starting their home search.
A Buyer Representation Agreement is a contract that outlines the terms and conditions of their working partnership including broker compensation. However, the buyer’s agent compensation can come from the seller if requested in a buyer’s offer via the purchase agreement, provided the seller agrees to pay it. Written agreements are required for both in-person and live virtual home tours. You do not need it if your are just speaking to an agent at an open house or asking them about their services; however, you will be required to sign in to enter an open house and learn of property details.
Here is what the settlement means for home sellers:
- You will still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
- Your agent must conspicuously disclose this to you and obtain your approval for any payment or offer of payment.
- This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers and must specify the amount of rate for buyers.
- If you choose to approve an offer of compensation, there are changes to how this can happen.
- You as the seller can still make an offer, but your agent cannot advertise it in the MLS.
More details about these changes and what they mean can be found at facts.realtor.
