North Cincy News

The National Association of REALTORS® (NAR) has reached a settlement with plaintiffs on March 15, aiming to conclude litigation regarding broker commissions. This agreement, pending court approval, introduces changes to real estate transactions while maintaining consumer choice in services. These changes will be effective from August 17, 2024.

Under the new rules, real estate agents using a Multiple Listing Service (MLS) must have written agreements with buyers before home tours. These agreements should clearly disclose the compensation amount or rate for the agent and how it is determined. Compensation terms must be specific and not open-ended, and agents are prohibited from receiving more than what is agreed upon with the buyer. Additionally, it must be stated that broker fees and commissions are negotiable.

NAR supports written agreements as they clarify services and responsibilities for consumers. Some states already mandate such agreements.

Changes also affect communication about compensation offers among real estate professionals; these can no longer occur on MLS platforms but may still happen off-MLS. Sellers can offer buyer concessions on an MLS for costs like closing expenses.

For home buyers and sellers: if your agent uses an MLS, you need a signed agreement detailing services and costs before touring homes in person or virtually. Such agreements are unnecessary when speaking with agents at open houses or inquiring about their services. Agent compensation remains negotiable, so questions about services and agreements should be asked when choosing an agent.

Further details are available at competition.realtor.