North Cincy News

The National Association of Realtors (NAR) has updated its FAQ to provide more information on written buyer agreements, as part of a settlement requiring MLS participants working with buyers to enter into such agreements before touring homes. This update aims to clarify the practice changes that will soon be implemented.

According to NAR, "The practice change requiring written agreements with buyers is triggered by two conditions: it only applies to MLS participants 'working with' buyers and is triggered by 'touring a home.'" The term "working with" refers to providing brokerage services like identifying properties or facilitating negotiations for the buyer. If an MLS participant works solely as an agent or subagent for the seller, they are not considered to be working with the buyer, thus no agreement is required.

State laws may affect when these written agreements are needed. NAR specifies that "written buyer agreements will be required of all MLS participants working with buyers prior to touring a home, unless state law requires a written buyer agreement earlier in time."

A tour of a home involves entering the property physically or virtually at the direction of an MLS participant. However, there is no requirement for an agency agreement between MLS participants and buyers; various professional relationships are permissible under state law.

NAR policy does not dictate compensation terms in these agreements but emphasizes that any agreed compensation must be "objectively ascertainable and not open-ended." Additionally, existing active buyer agreements should ensure compliance with these new terms once the policy takes effect.

The final approval hearing for this settlement is scheduled for November 26, 2024. For further questions or clarifications regarding these updates, members are encouraged to contact Katie or her team.