For months, the National Association of REALTORS® and the Northeast Florida Association of REALTORS® have been discussing changes to the real estate industry as the result of a national settlement agreement related to broker commissions.
That time is finally here.
Starting on Aug. 17, two important changes will be implemented related to how REALTORS® conduct their business.
- 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 the MLS. 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.
- Agents who are working with a buyer must 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.
Navigate the new real estate landscape with NAR’s new consumer-focused resources
NAR has published several new consumer-focused resources for NAR members to use as they adapt and help consumers navigate the new real estate landscape. All resources are available on facts.realtor, NAR’s center for information on the settlement. There you will find:
- Fact sheets on what the practice changes mean for homebuyers and home sellers. These resources—one for sellers and one for buyers—outline what buyers and sellers should expect after Aug. 17 and the value agents who are REALTORS® provide to consumers in these transactions.
- A broker’s guide to upcoming practice changes. These slides provide an overview of the settlement, information on corresponding practice changes and implementation, and guidance on how to help consumers understand what these changes mean for them and their homebuying or selling transactions.
- A template compensation disclosure for active listing or buyer agreements as of Aug. 17. The template disclosure can be used for active agreements as of Aug. 17 that will need to be amended or supplemented with a separate disclosure to conspicuously note that compensation is not set by law and is fully negotiable. For more information on requirements for amending active listing or buyer agreements, please see FAQs #52, #53, #71, and #72.
